Linden Lab’s Marketing Strategy: A Comedy of Errors?

The AI Ad Disaster & Linden Lab’s Excuses

Linden Lab finally decided to advertise Second Life. Great news, right? After years of near-silence, they were finally putting money into marketing.

And then… they dropped this.

No avatars. No Second Life footage. Just a generic, AI-generated ad that looked like it belonged to a self-help seminar, a dating app, or, worse, an NFT scam. The entire thing could have been selling literally anything, except Second Life.

The community’s reaction? Rage.

Second Life has spent years fighting a reputation problem, and this ad? It was like throwing gasoline on the fire. Instead of showcasing what makes SL special, Linden Lab put out a soulless, misleading AI promo that did nothing to attract the kind of users who would actually stay.

So how did they respond?

The A/B Testing Excuse

James Wagner over at New World Notes got Linden Lab on the record, and their explanation? Classic corporate nonsense.

Brad Oberwager: Relax, guys, this was just A/B testing!

Ah yes, the magical marketing term meant to calm the masses. But here’s the problem:

A/B testing compares two legitimate strategies to see which performs better. But what exactly was being tested here? Whether people prefer being lied to?

And more importantly, why was this “test” live on Facebook for the world to see? That’s not testing. That’s publishing.

Then came excuse #2: “We didn’t want to use community content without permission.”

Sounds fair… except for one tiny little fact Linden Lab already has permission. Their own Terms of Service explicitly state that they can use user-generated content for marketing. Either someone at LL doesn’t know their own policies (which is terrifying), or they were just hoping no one would notice.

And finally, the worst excuse of them all: “It takes too long to get permission.”

Oh really? Because Linden Lab has no problem reaching out to vloggers when they need free promotion. They invite content creators to Zoom calls. They rely on them to showcase Second Life. But suddenly, when it comes to an official marketing campaign, they’re helpless? Please.

They could have had real Second Life footage in a matter of hours. Instead, they rushed out a completely fabricated ad that misrepresents the platform and does nothing to actually grow the community.
What was the urgency? Was Second Life about to explode? Was there some kind of marketing apocalypse that required immediate AI intervention? Because if this was their idea of a “test,” the only thing they succeeded in proving is that they have no idea how to market their own product.

The Latest Excuse Parade

Since then, Wagner came out with another article, because Brad Oberwager wanted to clarify things. And, well… clarify is a strong word. His excuses are still rubbish, but I had to make a third video about it because Wagner just dropped another gem, one that gave me a good laugh.

Now, I get it. Some of you might think I’m repeating myself. And honestly? You’re not wrong. But when Linden Lab keeps making the same mistakes, the conversation inevitably stays on repeat.

This isn’t just a rehash of my past videos. It’s the fourth instalment in this ongoing saga. After covering this disaster across three videos, I wanted to lay it all out in one place, not just to recap what happened, but to dig deeper into the broader implications of Linden Lab’s decisions. The comments and discussions from my previous videos made it clear: this issue runs deeper than bad marketing.

And at this point? Whether or not I have to revisit it again is entirely up to Brad Oberwager.

And that brings us to their latest grand vision: Linden Lab wants to triple Second Life’s population and triple what creators make. Bold. Ambitious. Eye-catching.

And yet… their chosen strategy to achieve this? AI-generated ads that completely misrepresent the platform.

But marketing isn’t the only place Linden Lab is failing to protect Second Life. While they’re busy A/B testing nonsense, they’ve also been ignoring another crisis entirely, one that exposes just how little they care about actual content protection and platform integrity.

The HiVid Debacle and the Misinformation Problem

If Linden Lab’s AI ads showed us how little they understand their own product, the HiVid scandal revealed something even worse: how little they care about protecting it.

The HiVid scandal highlights just how little many residents understand about IP rights and legal accountability in virtual worlds. And honestly? That’s not their fault because Linden Lab refuses to educate or enforce, leaving bloggers and vloggers to do the heavy lifting.

Take a look at some of the comments I received when discussing the HiVid investigation:

This particular comment suggests that exposing HiVid was somehow about defending big corporations and that calling out a “little pirate” was an overreaction. But here’s the reality: HiVid wasn’t some harmless rebel against corporate greed. It was a platform that ran for three years, making real money off stolen content. Whether or not some creators charge high prices is a separate issue, it doesn’t justify outright theft.

And it gets worse. Some people believe that because Second Life operates under U.S. jurisdiction, things like distribution rights don’t apply. News flash: laws around digital content, fraud, and copyright aren’t exclusive to the United States. Linden Lab could have been legally targeted for allowing a platform like HiVid to thrive under their nose. That would have been a disaster for everyone who enjoys Second Life.

Now let’s look at another comment:

This one leans toward sympathy, worrying about the potential real-world consequences for the person behind HiVid. And look, I get it. Nobody wants to see someone’s life ruined. But we can’t ignore the fact that he knowingly committed fraud for three years, making substantial profits off unsuspecting residents. There were people who lost money because of HiVid’s shady operations, and their losses matter too. What’s even more frustrating is that Linden Lab provided a brief statement but has yet to step up and actually talk about what happened. Why aren’t they holding a Q&A? Why aren’t they clarifying their stance?

I even reached out to Linden Lab leadership, inviting them to discuss the matter and provide clarity beyond a simple statement. Initially, they responded, acknowledging the situation and claiming they take intellectual property issues seriously. They also mentioned they would check if Brad Oberwager was interested in further communication, either on or off the record.

And then? Silence.

No follow-up. No real discussion. No willingness to engage beyond their carefully crafted corporate response. It’s clear they’d rather let bloggers and vloggers deal with the public backlash than take responsibility for addressing it themselves.

But the concerns don’t stop at HiVid. Many people are well aware that real-life luxury brands like Gucci, Chanel, and Yves Saint Laurent are being copied and sold in Second Life. The issue isn’t just that it happens. Some people genuinely believe it’s completely acceptable because the official brands aren’t directly present in Second Life.

That assumption is incorrect. Just because a brand doesn’t have an official presence in Second Life doesn’t mean they don’t care about their intellectual property being used without permission. Some might think, “They’ll never find out, so we’re safe.” But this is 2025. Nothing stays private. Between social media posts, hashtags, bloggers, and vloggers showcasing virtual goods, brand infringement is more visible than ever.

And with AI and bots capable of scanning massive amounts of content in seconds, the idea that Second Life can stay hidden in the shadows is outdated. Do you really think that just because a virtual handbag costs a few Lindens, major fashion brands won’t take action to protect their assets? That’s a dangerous misconception, and it’s only a matter of time before legal consequences catch up to those who assume otherwise.

And when that time comes, who do you think they’ll go after first? Individual creators, or Linden Lab itself? Because if a major brand decides to take legal action, they’re not going to start by chasing down small-time sellers. They’re going to go straight for Linden Lab, the platform enabling this type of copyright infringement. It raises a serious question: is Linden Lab prepared for that kind of scrutiny? And more importantly, isn’t it their responsibility to ensure that Second Life doesn’t become a breeding ground for fraud and intellectual property violations?

But most importantly, if you love this platform so much, isn’t it up to you, the residents, to make sure you do the right thing as well? Protecting Second Life isn’t just about Linden Lab enforcing rules; it’s also about the community taking responsibility for upholding ethical standards. If we want Second Life to thrive, we can’t turn a blind eye to actions that could ultimately harm the platform we care about.

And yes, I know the music scene is also an issue, with many so-called DJs operating without proper licenses. I’ve seen the comments because apparently, for some residents, losing access to pirated movies was like the end of Second Life itself, despite the fact that there are legal ways to watch movies with friends in-world. For example, there’s a TV system that allows you to stream movies in Second Life, so you can still enjoy movie nights with your loved ones without the risk of supporting piracy. If you didn’t know about it, here’s the link.

And then came the predictable reactions: “What’s next? Are they going to remove music? If that happens, Second Life will die!”

This isn’t about removing the music scene in Second Life; it’s about ensuring that it operates legally. There are plenty of licensed music venues in Second Life that follow the rules. The real issue is that some people have normalized content theft to the point where they don’t see it as a problem. And the irony? This platform was built by its users, but at this rate, it feels like it’s the users themselves who could ultimately destroy it by refusing to condemn fraud and piracy.

Why Are We the Ones Explaining This?

Why is it that every time there’s an issue, it’s the bloggers and vloggers who have to explain it? Are we the unpaid PR department now? Because it sure feels like it. Linden Lab, where are you? Where are the Zoom calls? Where’s the real creator input? Brad Oberwager says, “I welcome feedback and listen intently. We are trying to do the best by our creator community. Clearly, we made some very valuable members of that community upset. Some of our favorite artists. I’m deeply sorry for that.” That’s an understatement.

What troubles me is, … what happened to those Zoom calls? Granted, I didn’t see much purpose in them given how they were structured, but the fact remains: we were there. Available when we were summoned. Brad could have used those opportunities to say, “Hey, I want to triple Second Life’s population. Can I get your thoughts on this campaign before we launch it?”

That chance was right there, but instead, they decided to go forward without input. And I seem to recall that we were also asked to promote Second Life at one point. Then we were asked to help identify copybotters, something a few of us immediately shut down by making it clear on social media that we are not on Linden Lab’s payroll, and it is not our job to police their platform.

And now, Brad says, “Well, we stopped, so we won’t know anything.” Is that a convenient excuse or an outright deflection? Because what exactly was this A/B testing supposed to accomplish? Was using AI-generated content really going to provide meaningful analytics? How does testing something that doesn’t even resemble Second Life help determine the best marketing strategy? Did I miss the memo where misleading advertising was the new gold standard?

The New User Experience is Still a Mess

Linden Lab wants to triple the population of Second Life, but before throwing money at AI ads or mobile incentives, they need to address a fundamental issue: the onboarding experience is a disaster.

New users arrive, struggle to figure things out, and often quit before they ever experience what makes Second Life special. The viewer is overwhelming, the learning curve is steep, and the first thing many encounter is a cluttered, outdated interface that does little to guide them. Even for those who push past the initial confusion, finding engaging content or a welcoming community can feel like an uphill battle.

Retention should be the first priority, not just attracting new users who will log in once, get frustrated, and leave. If you want people to stay, you have to make their first experience good. Why not improve onboarding with clearer tutorials, better user interface improvements, and an actual guided experience that introduces newcomers to the best of what Second Life has to offer?

Until Linden Lab addresses this glaring issue, any attempt to expand the user base is just pouring water into a bucket full of holes.

Recognizing and Rewarding the Community’s Efforts

Brad, if there’s one thing this whole debacle has made clear, it’s that the Second Life community has a voice. And that voice has some solid ideas. One particularly insightful comment I came across asked a simple but powerful question: Instead of throwing money at AI ads and an underperforming marketing team, why not invest in the residents who are actively helping Second Life thrive?

Take the Second Life Mentors, for example, residents who voluntarily guide newcomers, answer questions, and help ease the notoriously steep learning curve. Why not offer them a Linden-based incentive or some form of recognition for the hard work they do? Maybe they need to mentor for a certain amount of time or pass a qualification process, but rewarding those who actually contribute to retention makes far more sense than burning Lindens on gimmicks.

Where is the appreciation for the people who have spent years cultivating the Second Life community? If Linden Lab truly wants Second Life to grow, it needs to start by valuing the people who already work tirelessly to make it welcoming.

Linden Lab’s Obsession with the Mobile App and Premium Memberships

Linden Lab seems dead set on pushing the mobile app as the key to attracting new users. And look, I get it. Mobile is the future in many ways. But so is VR. And the reality is that, no matter what they do, the full Second Life experience will always be on PC, with mobile serving as a companion app. That’s just how it is.

Talk to any PC gamer. Are they going to ditch their rig for a mobile app? Absolutely not. They might play other games made for mobile or console, but they know certain experiences can’t be replicated outside of PC. Nobody is out here demanding Destiny 2 on mobile. The biggest request was cross-platform support so friends could play together, regardless of hardware.

Do you really think this PC gamer would abandon this setup… for a mobile app? 😂 Yeah, didn’t think so.

And before anyone jumps in with “Second Life isn’t a game,” that’s not the point. Whether you see Second Life as a game or not, the fact remains that not every platform transition makes sense. Mobile can be useful, but it will never be a full substitute for the PC experience.

Then there’s the aggressive push for Premium memberships. Now, as a Premium member myself, I don’t have an issue with the idea. In fact, I’ve even recommended it to others. But pushing it too hard is the wrong approach.

Most modern games have moved to a freemium model, where the base experience is free, and developers make their money selling cosmetics, upgrades, or season passes. And guess what? That’s all optional. Premium memberships should be a choice, not something forced down everyone’s throat.

Did we really need more Premium homes? Do they seriously think people are going to pay $250 USD for that? Let people explore the platform before pressuring them into investing in it.

And then there’s the whole MadPea deal. I personally asked Brad why they partnered with them, and there was no solid reasoning behind it, just that he thought it was a great move. I’m assuming he feels the same about Seraphim. But MadPea and Seraphim don’t need more promotion. They already dominate their respective spaces.

Why not highlight parts of SL that could actually bring in fresh interest? How about promoting Premier Wrestling or diving deeper into the roleplay community? I see people asking about roleplay in Second Life all the time. Do you think your AI-generated ads, Brad, are telling them about that?

This is What Can Be Done in Second Life

If you still think Second Life can’t produce high-quality, engaging content, think again. Premier Wrestling proves otherwise.

Their production quality, storytelling, and in-world cinematics are proof that you don’t need AI to create something exciting. You just need talent and vision.

Check out this trailer from one of their wrestlers, TLC.

This is the kind of creativity Second Life should be promoting.

If you really want to triple the population, start by tapping into the people who are already curious. Find out what actually attracts new users instead of relying on misleading, soulless AI marketing campaigns.

Real Creators, Real Ads – No AI Needed

If Linden Lab really thinks AI is the only way to market Second Life, they clearly haven’t been paying attention. We have incredibly talented content creators who showcase Second Life beautifully without needing AI-generated nonsense.

Just take a look at this ad from Teal Aurelia, a perfect example of how Second Life can be marketed authentically, using in-world footage and creativity instead of generic AI filler.

See, Brad? It’s not that hard.

Brad, It’s Decision Time

Brad, the community has spoken. Loudly. You say you want to triple the population and creator earnings, but right now, the only thing multiplying is Linden Lab’s PR disasters. If this AI ad disaster is what you call a growth strategy, then Second Life isn’t evolving, it’s becoming a parody of itself.

You can keep ignoring the community, fumbling through excuses, and betting on AI-generated shortcuts, or you can do what should have been done from the start: listen, engage, and invest in the people who actually make this platform thrive.

So, what’s it going to be, Brad?

A Second Life worth growing or a slow, embarrassing descent into irrelevance?

Your move.

Edit: Linden Lab Finally “Updates” Their Flickr Rules… But Guess What?

Oh wow, Linden Lab updated their Flickr group rules, and guess what? Now, submitting images grants them permission to use your content for marketing and promotion. Groundbreaking. Truly.

Except… they already had that right in their Terms of Service.

So, what changed?

Absolutely nothing, except now it’s written in a place they think more people will actually read.

Look, I’ll give credit where it’s due. If this means we’re finally getting marketing that actually showcases Second Life instead of AI-generated hallucinations, then great. But let’s not pretend this is some major breakthrough. They could have been using real resident content this whole time. They just chose not to.

But hey, now that we’re all “on the same page” (because apparently, we weren’t before???), I swear … if I see another AI-generated Second Life ad, I’m making a fourth video.

Don’t test me, Brad.

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2 comments

Kaylee West March 10, 2025 - 10:44 am
With regards to the onboarding question, I recently put forward a suggestion that could partially provide a solution. Over the 17 or more years I have been an SL resident, nearly 3000 of my undergraduate students have done lessons I specifically designed for them in SL. For many years, the lessons were held in university labs IRL, so I got to see the kinds of computers the students were using. When they were using university supplied computers, things were not too bad. However, at a certain point quit a few years ago we were no longer able to use uni computers, so students had to BYOD. For many, many of them, their computers were relatively low speced, and so they had to run SL at the lowest settings to even just do the classes. Moreover, for around 10 years after every lesson, I had students do an informal survey about the lesson just completed. While there were many positive comments about lesson content and design, there were also many about how laggy SL is. This was also reflected in the formal university surveys done at the end of each semester. I am now also spending a lot more time out in the larger SL community and am finding to my surprise how many users have their viewer settings set relatively low. This means that, at least graphically, they are not getting the full SL experience. Some will say well, they just have to get used to the settings their machine can handle, and most do. But can you imagine for a first-time user if one of their earliest experiences is lag? If what they see are graphics from 20 years ago? What use is it to showcase amazing fashion if a new user can only see a downgraded version of it? How does this help creators? If LL offered all first-time users time-limited free access to a streaming service (which Philip says they are developing) so the first impression a new user gets is of a AAA game-like virtual world that runs smoothly, what do you think the chances are of wanting to see more? At the end of the offer, the user would get the choice of continuing to use the streaming service or be given clear advice on the best computer set up (requiring the purchase of a new computer) or clear advice on how to optimise their existing computer. Using the streaming service straight up could create a strong desire to stay in SL because of its uniqueness and incredible beauty. Then, it's up to the various communities to make the people connection. On the mentoring side of things, I've mentored nearly 3000 students. I've seen and solved many of the issues new users have. There are many more likely me, especially in communities like the VWEC (Virtual World Education Consortium), made up of both working and retired educators who have a wealth of experience designing learner experiences. And they are trustworthy!! All many would want in return for playing a mentoring role is free Premium or Premium Plus membership in exchange for an agreed number of hours mentoring inworld.This would cost LL so little it wouldn't even show on their balance sheets! I totally agree with your point about the ads being tested. It really makes me question the judgement and experience of some of the senior people in LL (not Philip). I almost feel they are not taking things seriously because "it's just a virtual world." I'm probably wrong, but that's what I feel.
CatSahara April 22, 2025 - 7:00 pm
I'm with you and I agree this is fraudulent when it comes to movie and music distribution. But I don't think you can compare it to the luxury brands like Gucci, Chanel and YSL as you mentioned. Yes, perhaps it's an infringement as you say. I'm no lawyer, but I see the situation differently. While the movie is the product, a copy of some Prada handbag is not the product, it's a replica in a miniature format in a game. I see it more as like those little matchbox cares boys used to play with. You could have Mercedes, Ferrari etc. And I would imagine that the real producers might see this more as free advertising rather than copyright infringement. They're after all not some counterfeit product people will be wearing/using in real life.
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