No one without a virtual ego on the Internet is a complete human being – at least, that seemed to be the case at the height of the media excitement in 2006 when it appeared that people of the future would be meeting each other strictly as virtual figures in the online world “Second Life”. Companies, universities, even political institutions such as the State of Baden-Württemberg spent a lot of money creating their identities in the virtual world. In the meantime, the hype has died away, and companies such as Mercedes-Benz, Adidas, and the Deutsche Post have shut down their virtual activities, concrete evidence for the significant decline in corporate interest in Second Life a little less than four years after its establishment.  The attention of the media has now shifted to Twitter, Facebook, and all the rest, and companies are once again confronted with the need to make a decision: should they take the investment plunge in the hope of profiting from a hype?

Today’s telecommunications markets are by and large saturated. Falling earnings, shortened product life cycles, and high customer expectations are raising the pressure on enterprises to find a successful path. As they search for innovative ideas and alternative revenue sources, they have begun to rely more and more on hypes. Hypes are topics which are already at the focus of intense attention by the media, a fact which simplifies communication for companies. Moreover, they are a means of addressing customers who are keen to hear about and try out innovations and, as a rule, tend to be willing to open their pocketbooks. So the early identification and monetarization of hypes can lead to decisive competitive advantages.

But while they offer opportunities, investments in hypes also involve risks such as the overly optimistic assessment of the short-term and the failure to appraise adequately the long-term benefits. So making optimal decisions in dealing with hypes requires knowledge of the relevant determinants for hype assessment and their application within the context of the specific company. The objective of this article is to put clear recommendations for action concerning the use of hypes into the hands of companies. With this in mind, Detecon has developed an assessment model which companies can use as a tool to classify hypes as relevant for their particular situations.