The Rise of Virtual Influencers: Should Your Brand Use One?
Exploring the impact of AI-generated influencers on brand marketing
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In 2024, influencer marketing remains at the forefront of brand strategies, commanding substantial resources and attention. Brands are heavily investing in influencer partnerships, dedicating a significant portion of their marketing budgets to this channel. Here are a numbers to get the high level view:
According to Influencer Marketing Hub's comprehensive industry report, nearly 59.4% of marketers plan to increase their influencer marketing budgets this year (Influencer Marketing Hub, 2024). Influencer marketing’s proven effectiveness justifies this substantial financial commitment.
Additionally, Forbes highlights that 74% of consumers have purchased based directly on influencer recommendations.
Nearly half of consumers purchase products monthly following influencer interactions (Sprout Social, 2024).
Amidst the growth of traditional influencer marketing, brands are increasingly exploring a novel frontier: virtual influencers. Virtual influencers are digitally created, AI-powered personas that exist exclusively online. They embody ideal brand ambassadors who perfectly reflect brand narratives, values, and aesthetics, eliminating unpredictability and typical human limitations.
Understanding Virtual Influencers
Virtual influencers, exemplified by the notable figure Lil Miquela, are meticulously crafted, computer-generated characters with lifelike appearances and carefully developed personalities. Launched by the startup Brud, Lil Miquela has attracted over 2 million Instagram followers and collaborated with global brands such as Prada and Calvin Klein. These virtual personalities engage socially, promote products, and create backstories that captivate followers and build emotional connections.
The Growing Appeal of Virtual Influencers
Virtual influencers solve numerous challenges inherent in traditional influencer marketing. They offer unmatched control, ensuring consistent messaging and preventing controversies or off-brand behavior. Their digital nature allows global campaigns without logistical complexities or geographic constraints, appealing to brands looking for efficient, scalable solutions.
Financially, virtual influencers present predictable costs. Although initial development involving AI and graphic design is substantial, ongoing expenses are minimal compared to traditional influencers who require fees, travel expenses, and accommodations. This makes virtual influencers economically attractive for long-term strategic marketing.
Advantages of Virtual Influencers for Brand Marketing
Consistency is a key advantage. Virtual influencers guarantee flawless alignment with brand identity and messaging. They always stay "on brand," significantly reducing reputational risks that sometimes accompany human influencers.
Additionally, virtual influencers offer exceptional scalability. Capable of engaging multiple markets simultaneously, they adapt content swiftly to cater to diverse demographics without losing coherence. This adaptability is particularly advantageous for global marketing efforts requiring consistent yet personalized messaging.
Challenges and Potential Pitfalls
Despite their benefits, virtual influencers come with significant challenges. Foremost is authenticity. Consumers today value genuine interactions and relatable experiences. Without real-life experiences and authentic emotional depth, virtual influencers might struggle to establish deep connections essential for influential consumer interactions.
Ethical concerns also arise prominently around transparency. Consumers may feel deceived upon discovering influencers they trust are artificial. This issue mandates clear and upfront disclosures to maintain trust and mitigate potential backlash.
Technological complexity represents another challenge, particularly for brands lacking extensive resources. Developing and sustaining engaging virtual influencers demands substantial technical expertise, continual content updates, and ongoing investments in AI and visual design.
Real-World Applications and Examples
Several brands have successfully leveraged virtual influencers. Lil Miquela’s collaborations with luxury brands like Prada showcase virtual influencers' potential within premium markets, appealing effectively to younger, digitally savvy audiences.
Kizuna AI, a virtual influencer from Japan, successfully promoted Apple's iPhone XS, underscoring virtual influencers' effectiveness within niche markets.
Similarly, Shudu, known as the world’s first digital supermodel, partnered with beauty brands such as Fenty Beauty, demonstrating the efficacy of virtual influencers in streamlined, digital-first marketing campaigns.
Broader Societal, Ethical, and Economic Considerations
The proliferation of virtual influencers carries substantial societal implications. These influencers often present idealized aesthetics, potentially exacerbating unrealistic beauty standards and societal pressures around appearance. This idealization risks negative mental health impacts, especially among young demographics.
Economically, the shift toward virtual influencers may disrupt traditional influencer marketing, potentially affecting human influencers' livelihoods. As brands embrace virtual influencers for their cost-effectiveness and reliability, the influencer marketing industry's dynamics might shift significantly.
Ethically, transparency is essential. Clear communication regarding the artificial nature of virtual influencers is necessary to maintain consumer trust. Failure in transparent disclosures may result in reputational harm and diminished brand credibility.
Should Your Brand Consider Virtual Influencers?
The decision to incorporate virtual influencers should align with your brand’s goals, values, and target audience expectations. Brands prioritizing consistent messaging, global scalability, and cost-efficiency may greatly benefit from virtual influencers. Conversely, brands emphasizing authenticity and relatable storytelling may find virtual influencers less aligned with their strategic objectives.
Navigating the Future of Influencer Marketing
Virtual influencers represent a significant evolution within influencer marketing, offering valuable opportunities alongside considerable challenges. Brands contemplating this innovative marketing approach must thoughtfully balance potential benefits with ethical transparency and authenticity considerations. When effectively implemented, virtual influencers could enhance marketing effectiveness and global reach, though improper use might undermine consumer trust and brand reputation.
Conclusion
Virtual influencers mark a compelling evolution in influencer marketing, offering brands unparalleled control, consistency, and cost-effective scalability. However, these advantages accompany significant ethical, societal, and economic considerations. Navigating these complexities demands a careful, informed approach, emphasizing transparency, authenticity, and audience alignment. Ultimately, whether virtual influencers suit your brand strategy hinges upon clearly defined objectives and a nuanced understanding of your target audience within today’s dynamic digital marketing landscape.
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