The Rise of Virtual Influencers: The New Era of Influencer Marketing?

Influencers have taken the marketing industry by storm, transforming what was once deemed "wasting your time on social media" into a profitable business for many individuals worldwide in a short amount of time. We are all familiar with influencers - some we follow, others we dislike. Social media influencers have cultivated a large, devoted audience within their niches, and their followers trust them enough to influence their brand choices and purchasing decisions. Businesses, of course, have recognized this opportunity and started engaging influencers to promote their brands, products, or services.?Consequently, a new area of influencer marketing emerged.?

As time goes on, influencer marketing is evolving. The number of influencers across various niches is growing, leading to some influencers being seen as driven purely by profit-seeking motives. This can result in a loss of trust, which was the cornerstone of influencer marketing at its inception.

As technology continues to advance, new trends are constantly emerging. In recent years, social media has given rise to a new type of influencer: the virtual influencer. So what exactly is a virtual influencer? Simply put, a virtual influencer is a computer-generated image or avatar that is created to resemble a realistic persona. These images are created using 3D modelling and animation tools and then brought to life by their creators through social media, typically Instagram, TikTok or Youtube (Vtubers).

Virtual characters have been around for a while now. Hatsune Miku, one of the most famous virtual characters, was created back in 2007 as a virtual singer. She combines the Vocaloid software voicebank with advanced 3D animation and hologram technology, making her the first virtual character to achieve widespread global recognition. Hatsune Miku has become one of Japan's most popular "singers" and continues to captivate audiences worldwide.

The virtual characters on different social media platforms soon followed. In 2009, the Brazilian magazine Louisa introduced Lu Do Magalu, a virtual influencer used to endorse different products over the years. Since then, Lu Do Magalu has accumulated an impressive audience of over 6 million followers on Instagram, making her one of this platform's most popular virtual influencers. However, her sphere of influence remains limited to the Brazilian audience.

In 2016, the US-based startup Brud created Lil' Miquela Sousa, who has become the first truly global virtual influencer. Lil' Miquela is a virtual character, a 19-year-old robot girl residing in Los Angeles. Since her inception, she has collaborated with several prominent fashion brands, including Dior, Prada, and Calvin Klein. Besides her high-fashion modelling gigs, Lil' Miquela also ventured into music and has millions of views on her music videos. Her influence in the digital world has not gone unnoticed, as TIME Magazine featured her on their list of "25 Most Influential People on the Internet."

The number of virtual influencers is steadily increasing, and companies are increasingly collaborating with them. According to Influencer Hub, Imma, Thalasya, Nobody Sossage, Guggimon, and Any Malu are currently among the most popular virtual influencers. Here in Dubai, we also have our first local virtual influencer, Meta Kira , whose adventures around Dubai I follow regularly.

How can brands utilize virtual influencers??

To begin, companies must evaluate their brands and marketing strategies to determine if virtual influencers would fit their products or services well. If the answer is yes, they must decide whether to create their own virtual influencer or hire an existing one.

If a company develops its virtual influencer, it will have greater control over its brand image. Real-life influencers are human beings with opinions and personalities, which means they may behave unpredictably. However, with a virtual influencer, companies can maintain complete control over the influencer's online activities. By investing in developing their virtual influencer, brands can create a consistent and controlled brand ambassador that always stays on message.

Alternatively, if a company decides to hire an existing virtual influencer, they will be working with a pre-existing persona created by another company or individual. Some companies find virtual influencers to be more cost-effective than traditional influencers, as many of the expenses typically associated with influencer marketing do not apply. Virtual influencers do not need to travel or be accommodated, and their fees may be lower than those of traditional influencers (although this may change in the future).

Virtual influencers have so far proven to be highly engaging, with their unique look and virtual personality, which is attracting audiences. They offer an innovative way for brands to connect with their target groups and can attract a high number of followers on social media.

Some marketers argue that virtual influencers have an advantage in engaging consumers over real-life influencers. However, for me, the rise of virtual influencers raises a fundamental question and changes the paradigm of influencer marketing. Credibility and trust are at the core of influencer marketing, and the question that arises with virtual influencers is: whom will we trust now? Will we trust the virtual character, the individual behind the virtual character, or the company that created the virtual influencer??And if we are dealing with a company-created character, how is the virtual influencer different from the company mascot, for example, Ronald McDonald?

What does the future hold for virtual influencers? Are they only a fad, and will they lose their appeal as more of them emerge? Or are they here to stay? Recent research by Hype Auditor suggests that 57% of virtual influencers lost followers in 2022. For instance, Lil Miquela lost a remarkable 114,000 followers last year. However, companies are still partnering with virtual influencers and even creating their own. Moreover, global advertising agencies are now offering services to design virtual influencers.

The potential applications for virtual influencers are limitless. As the application of VR and AR continues to increase, virtual influencers may become common in marketing. With the continuous evolution of Metaverse technologies and the increasing use of avatar-based communication beyond gaming communities, virtual influencers could easily become the brand ambassadors of tomorrow.

What are your thoughts on this? Feel free to share your opinion in the comments.?

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