For those of you who are unfamiliar, Second Life is a virtual world where you can create an avatar, own virtual land, exchange virtual currency, and build all sorts of virtual things.  Different from a typical multi-user role playing game, in Second Life you have no guiding objective -- it's less a game than it is an environment for creating whatever pleases you.

Because your avatar doesn't need to eat, you don't really have any basic needs that need to be fulfilled.  Instead, time in SL is spent exploring, chatting with other avatars, and exchanging land and various in-world creations that people -- yourself or others -- have made.

I spent the evening looking at the SL presence for as many major brands as I could find.  I'm sure I've missed a few, but this is a fairly good representation of what real world advertisers are doing in the virtual world space.  From a creative standpoint, it's not hard to see why advertisers are so interested in exploring Second Life's possibilities.  There aren't a lot of creative or physical limitations inherent in the environment, so it's a unique opportunity to present a brand in an entirely new context.

So, without further ado, here is the massive list of real world brands that are currently participating in the virtual world of Second Life.  Enjoy.

Jason writes:

Linden Labs just released an update to their terms of service that appears to outlaw most forms of gambling. Specifically mentioned are any activities where currency (Linden or otherwise) is transferred based on games of chance or the outcome of sporting events.

This is huge for a lot of property owners in SL that run large casinos and clubs, as well as all the folks that earn revenue from the happenings at these locations. It's also bound to affect everyone who purchase and sell land, now that land can no longer be used to generate virtual money in this manner.

It's also an interesting example of how first-life regulation is adapting to "virtual" economies. Think about it: is the paper in your wallet or the record in your bank account fundamentally different from the value of the 0s and 1s being created in online activities?