Bigelow said it's all about giving kids what they want, and what they want are more products and brands that reflect everyday life. The kids make the request and the virtual world delivers. Rather than advertisers pushing ads at them, they accept the brands as part of the fun.

"As virtual worlds evolve, brands will realize that valuable content makes the most successful advertising campaigns," Bigelow said, adding that brands must understand that the kids are in control. "Kids tell me what they want. They will say 'I want an iPod' or a 'big Hersey's Kiss to put on the side of my head,' and we deliver."

Reuben Steiger, CEO at Millions of Us, a digital agency specializing in social media and virtual worlds, agrees that virtual worlds will converge with social media, and more brands will market to consumers with virtual goods.

A joint report between Forrester Research and Millions of Us released late last year reveals that Gen Y/Millennial consumers clearly acknowledge agreements they enter into with brands in virtual worlds. If they get something "desirable" in their virtual world, they accept the marketing, while older consumers remain largely ignorant of this type of give-and-take or tend to react to it negatively.

Steiger also makes a point that despite rumors in 2008, the virtual world Second Life isn't dead, and reach will continue as the biggest challenge in virtual worlds because not any one site has enough users to make a significant impact on a marketing campaign.

While virtual worlds have been around since the 1990s, adding branded clothing and items is somewhat new. Between January and June 2008, Gaia members bought more than 700,000 Scion cars using virtual cash, according to Debra Aho Williamson, eMarketer senior analyst. Toyota's Scion brand has aggressively experimented with virtual worlds, allowing consumers to enhance virtual versions, putting a user-generated content spin on the brand, she said.

If virtual worlds don't give kids the brands they want, many find a way to get them, according to Bigelow. For example, Cami, a WeeWorld user, made a video last year explaining to others how to move items from AIM into WeeWorld when the virtual world offered a Kool-Aid pitcher and hat for WeeMees on one platform, but not the other. She posted the video on YouTube.

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