A TEAM of Liverpool designers is hoping to bring gift-giving into the digital age with the launch of a new mobile marketplace for “virtual gifts” that people can play with on their iPhones.

Kisky Netmedia has created new iPhone application Little World Gifts (LWG) for people to buy the 3-D interactive gifts.

The idea of paying for gifts that can only be seen on screen may seem odd to many. But the giving of gift pictures has become common on social networking sites such as Facebook.

Kisky and LWG founder Paul Stringer says the virtual gift market is worth $(US)2.5bn – and says Facebook is estimated to generate $40m in annual revenue from such gifts.

Rather than selling static images, LWG sells interactive products it has designed, ranging from rocking horses to dancing Elvises.

 iPhone users can move the images round on their screens, using the device’s touch-screen technology. The gifts can even be wrapped in virtual paper that the recipient can “tear off”.

People will be able to buy gifts through the LWG app, paying using the iTunes music store payment system used by all iPhone users. The recipient will then get a Facebook message telling them where to go to download their gift.

Gifts will range in price from 59p to as much as £5 or £10. The app is set to launch next month.

Mr Stringer said: “We really do believe there is a digital gifting app for the iPhone that somebody is going to make that will do amazing business.

“We believe we're the people in the world who know most about this stuff. We’ve got the best chance of becoming that business right here.

“There's plenty of interest. Everyone knows digital gifts are big business. There is a big market for virtual gifts.

“We don't see any reason why people wouldn't want to buy them directly from their iPhone.
"We're excited about the potential for this.

“If we get it right, it will be a really nice business to have.”

Mr Stringer says the sheer size of the virtual gifts market shows how people are becoming more willing to accept digital gifts instead of “traditional” physical presents.

He said: “A gift is about the sentiment – somebody has bought something for you. It doesn't matter if it’s not physical. The analogy is with physical and digital music – people no longer need the plastic disks to enjoy the music."

Mr Stringer and the six-strong team at LWG hope major brands will want to endorse products on the site.

He also believes there is a market for location-specific virtual gifts that people could only buy in certain places, such as museums. He hopes people will choose to buy from LWG instead of choosing postcards or plastic souvenirs.

"What we want to do is bring in brands and major destinations and locations," he said.

"With gifts, when you go somewhere you try to buy something that's about that place.

"For example, if you were in Liverpool you could find gifts you could only buy in Liverpool, such as a Superlambanana or a penguin.

"We've been talking to people for the last six months and we should have stuff to announce next year. We have a museum interested, for example."

LWG will further broaden the range of products it offers over the next six months – and Mr Stringer has a striking ambition for the site.

He said: "Later next year we will have a proper 'diamond ring' and we hope to have our first LWG engagement."