Virtual Goods Give Web Firms New Revenue In Ad Slump

REUTERS — The Internet made shopping without checkout lines a no-brainer. Now, some Web companies are betting that people are ready to forsake another shopping tradition: tangible products. Virtual goods, which exist as digital bits on computers and cellphones, have grown more popular in the past year as important accoutrements for increasingly Web-oriented lives. Often available for a $1 or less, virtual goods range from video game accessories like extra weapons for shooting games, to electronic birthday cards and flowers for friends on Facebook or dating sites like Zoosk and flirtomatic.com. Virtual goods have been popular for several years in other parts of the world, particularly Asia, but are only now starting to catch on in the United States. For many Web start-ups, digital merchandise is an important source of revenue to replace scarce advertising dollars. And a series of big-ticket deals suggests that virtual goods are emerging as more than just a quirky fad...