The New York Times published an article this week detailing the new social media marketing partnership developed between General Mills, and the immensely popular Facebook game, FarmVille, created by the Zynga Game Network.

The agreement between Zynga Game Network and Cascadian Farm, a General Mills subsidiary, allows users to plant an actual Cascadian Farms product – organic blueberries. The aim of the in-game crop branding is to increase awareness, as well as educate consumers about the benefits of switching to organic produce.

Cascadian Farm’s integration into FarmVille represents a unique step forward in both social media marketing and in-game advertising. The majority of social games have incorporated ads that takeover the entire game, or are custom games designed for the brand itself. In this situation, Cascadian Farm is opting for a more subtle approach, and is simply sponsoring a single crop within FarmVille. By becoming part of the game, rather than take over the game, they avoid harassing players with excessive advertising. They give the user the choice to “opt-in” on their own, and choose to plant their branded crops.

Users who choose to plant the Cascadian Farm Organic Blueberries will be rewarded with shorter harvest times and larger cash returns. By adding extra value to the crop, players have an extra incentive to plant the blueberries. This is a savvy marketing move on behalf of FarmVille. Adding the extra value to the crop increases the likelihood of a user planting it, this, in turn, increases Cascadian Farm brand name awareness.

Will the FarmVille product placement generate brand awareness for Cascadian Farm? I think so, but only because there is an extra incentive for users to choose to plant the Organic Blueberries. Can Cascadian Farm educate users about the benefits of choosing organic products? Potentially, but I don’t have high hopes for this effort. Users don’t want to be directed to another website while playing FarmVille; they want to focus on their crops, not leave and go elsewhere.

The partnership between Zynga and General Mills is reminiscent of deals negotiated in the mid 2000’s, when the virtual world of Second Life was at the height of its popularity.  Many real-world corporations couldn’t establish an in-game presence fast enough. Second Life, like FarmVille, allows users to play for free, but encourages citizens to purchase the in-world currency to enhance their ‘second lives’ by purchasing in-game items.

However, while brands like Adidas, Coca-Cola, and AOL were clamoring to be first to open a store or sell products to Second Life residents, the citizens of the virtual world weren’t all that enthusiastic about being treated as ATM machines.  They were less than enthused by the new corporate invaders. Pay a visit to many of the real world corporate presences in Second Life today and you’ll more than likely find an entirely new and unrelated building, or more commonly, vacant land.  Ruins of a failed brand experiment deleted long ago.

Perhaps the most important question in the Zynga and General Mills scenario is whether or not the brand awareness generated through this in-game advertising will translate to actual revenue for Cascadian Farm? While I do approve of the method, I don’t envision much success at the cash registers. FarmVille users are logging in for an escape; to tend their crops and have fun online. They’re not coming to learn about organic produce and green living. Besides, who’s to say that the grocery shoppers in the household are even logging on to FarmVille in the first place?

Because of the added incentives offered to the user for choosing Cascadian Farm’s Organic Blueberries, I think that Cascadian Farm’s foray into branded content within FarmVille has the potential to succeed at increasing brand awareness.  However, I don’t think that this integration will generate increased real-world sales and revenue.  There’s simply not enough to motivate the user to actually purchase the product in the stores. 

Aside from a few exceptions, the currency of the web (or at least, social media) is social capital. You know, the number of friends you have on Facebook, your 2 million views on YouTube, your “SuperUser” badge on Foursquare, your hundreds (or thousands) of followers on Twitter and Tumblr. None of those things have any direct monetary value, although some people are trying to cash in on them through things like the Twittad network, or a good old fashioned TV deal-a-Tequila. As things currently stand, money can’t buy you love or Elite status on Yelp; the only way to get that is by earning it through creation of “compelling content” and/or being an “influencer”.  But something is in the works that’s going to change that, and potentially the way we view social currency in the online world.  

Picture this: you’re playing an online game. You run around and interact with other players of the game, and get points for everything you do. You can buy things with these points, and give these points to other people. You can spend real money to get these points, or you can just earn them (although to get the really good stuff, it’s going to take a while). Sounds familiar, right? It’s Second Life, or World of Warcraft, right? Wrong. It’s Facebook. Or it will be, in about 6-12 months.

Last week, a sales rep from Facebook came to Flightpath to have a discussion with us concerning the most recent changes to the site. During the course of the meeting, he revealed that Facebook will soon be allowing users to earn Facebook Credits by simply engaging with their friends, whether it’s by “liking” a status, adding a friend, or posting a video. People will also be able to gift Facebook Credits to others, along with using credits to purchase gifts. In short, Facebook is going to have a currency. Holy Terms Of Service.

According to the calculations of Lightspeed Venture Partners, Facebook made $35 million on Facebook Gifts in 2008 alone. That’s right. Those tiny little icons for $1 (or 100 credits) netted Facebook tens of millions of dollars last year (which is paltry compared to Zynga's $50 million). Ok, you’re saying to yourself, so what? I don’t care about little icons on my profile. Facebook isn’t going to make any money off of me. Well, you’re right—for now. You’re also probably over 25. And while you may not care about a teddy bear icon or some other form of digital embellishment, there are at least 27 million other people who do. They’re kids under 12, and they’re the people Facebook is ultimately planning for.

Maybe not all of you have kids. But those of you who do, or who have ever been around a kid who’s 12 or under, know about Webkinz and Club Penguin. For the uninitiated, Webkinz and Club Penguin are sites that are essentially Facebook for the under 12 set, only instead of a picture of yourself and your dog, the kids are COPPA-compliantly represented by animated animals. A social network combined with a game, they can play for free, but the really good stuff (digital furniture, digital pets, special invites, etc) goes to those who fork over the dough.  And fork over they do: with only 12 million registered members, Club Penguin made $35 million in profit ($65m in revenue) last year.

So what does this all mean? Well, it basically means that Facebook has the potential to make a lot of money. Kids who grew up having online access from an early age don’t have as many mental barriers between the online world and the real world. They don’t have problems spending a lot of (your) money to make their online room just as cool as their physical, brick-and-mortar room. Talking online for them is just another extension of talking in real life. So by attaching an actual value (10 credits, 15 credits) to the various actions one takes in the course of a 20 minute (or 4 hour) session on Facebook, Zuckerberg and Co. are actually monetizing social capital, which is pretty revolutionary. If you can get a special invite to a new Facebook feature by possessing a certain number of credits, you’ll essentially be able to buy your cool—which, ultimately, isn’t that different from the real world. But it’s certainly going to be a profitable revenue stream.