As Yann LeCun, Director, AI Research, Facebook quoted “Our intelligence is what makes us human, and AI is an extension of that quality. Artificial intelligence is extending what we can do with our abilities. In this way, it’s letting us become more human.”
As we enter into a future with nearly all things digitized, we are now also witnessing the fascinating rise of virtual influencers. These captivating, computer-generated characters are making waves, engaging audiences, and transforming the way brands approach influencer marketing. As their popularity soars, virtual influencers are blurring the lines between reality and digital art, captivating the attention of millions worldwide.
According to a survey conducted by Territory Influence, the virtual influencer market is currently valued at $4.6 billion and is projected to increase by 26% by 2025, demonstrating the rapid growth and potential of this digital phenomenon. The study also reveals that engagement rates for virtual influencers can be 2 to 3 times higher than those of traditional influencers, indicating their efficacy in connecting with audiences. The concept of virtual influencers might have seemed far-fetched a few years ago, but today, they are redefining the way brands engage with their audiences.
Fashion brands were among the first to embrace virtual influencers. These digital avatars have walked the virtual runways of major fashion events, representing luxury brands and collaborating with top designers. Notable fashion brands like Balmain, Gucci, and Prada have collaborated with virtual influencers to create immersive campaigns and runway experiences. In 2018, Balmain’s creative director, Olivier Rousteing, made waves when he featured virtual influencers Shudu Gram and Lil Miquela walking the runway at Paris Fashion Week. These figures rival those of many human influencers, showcasing the impact virtual influencers have in the fashion space.
Surprisingly, virtual influencers are not limited to the fashion and lifestyle realms. Even SaaS (Software as a Service) companies are recognizing the potential of these avatars for reaching their target audience. For instance, companies like Salesforce and HubSpot have integrated virtual influencers into their marketing campaigns to promote software products and engage with tech-savvy audiences. These virtual personalities are helping SaaS companies humanize their brands while driving customer engagement.
Ayush Wadhwa, Founder, Owled Media, says, “The appeal of virtual influencers lies in their ability to remain evergreen and consistent. Unlike human influencers who may age or change over time, virtual influencers can maintain a consistent brand image, providing brands with a reliable and long-term partnership.”
He further elaborates, “Even in the realm of SaaS companies, we see virtual influencers opening up new opportunities for engagement. By integrating these avatars into the promotion of digital tools and solutions, companies can humanize complex technologies and spark curiosity among their audiences. The data-driven nature of SaaS platforms also complements the data-driven marketing potential of virtual influencers. But while virtual influencers continue to gain popularity, brands need to keep in mind that the best way to market their products, tools, and services will be with the right amalgamation of virtual and ‘IRL’ influencers, together”
Despite their growing popularity, virtual influencers face their share of challenges. Skepticism among some consumers regarding the authenticity of virtual personalities is a recurring issue. Brands must navigate the fine line between using virtual influencers as creative tools and ensuring they remain transparent about their digital nature.
While talking about the challenges virtual influencers face, Anushree Jain & Chirag Jain, Co-Founders, SocialTAG, add, “While virtual influencers offer a fresh and intriguing concept, they do face some challenges in gaining popularity. Human influencers have a history of building trust and rapport with their followers over time. Virtual influencers need to work harder to convince audiences that their perspectives are genuine and not just a product of algorithms or scripts. Overcoming these challenges will be crucial for virtual influencers to maintain long-term relevance and sustain audience interest.” Adding to this, they said “ We believe that in industries like fashion and beauty, virtual influencers will be seen more often while other industries like finance or big ticket products are expected to collaborate with real-time influencers for a prolonged duration”.
As technology continues to advance, we can expect virtual influencers to become even more sophisticated and integrated into various aspects of our lives. The success of these AI-powered personas highlights the significance of storytelling, authenticity, and human connection in the digital age. So, as you scroll through your social media feeds, keep an eye out for these virtual stars as they continue to shape the future of influencer marketing and redefine the boundaries of human creativity and technology.
