Death of The Salesman? What The Rise of Virtual Influencers Means For Marketers

We live in a world where seeing is no longer believing and that is especially true across social media. Since around 2016, the use of virtual influencers (VIs) or Artificial Intelligence (AI) Influencers by brands such as Prada, Red Bull, Calvin Klein, KFC, Samsung and McDonald's has been increasing, but not everyone is comfortable with it.

These AI-powered pixelated personas have been integrating themselves within online marketing campaigns as they aim to engage with consumers at any time they are needed.

They are almost physically flawless and inspire a high-end lifestyle, yet are human enough to allow the everyday person to feel seen by them.

“Wherever there are new voices and channels to explore, marketeers will surely follow," explains James Robertson, head of digital communications and AI, Weber Shandwick.

A report by Dream Farm Agency concluded that 75 per cent of 18-24 year olds in 2022 followed a VI but only 40 per cent bought a product promoted by one of them. That suggests that VIs are still seen as more entertainment than they are trusted as a source of recommendation.

Meanwhile, in 2021, VML disclosed that 73 per cent of American Gen Zers desire brands that understand them.

The VIs Changing Marketing

One of the most high-profile VIs is Lil Miquela the Princess Leia doughnut-haired “21-year-old robot living in LA”, seems to capture the in-between of aspirational and relatable. However, two years ago, when she was named as PacSun's newest ambassador, the news was mired in controversy as social media users questioned why the brand could not have found a real woman to model its clothes.

Lil Miquela has promoted luxury and blue chip brand names such as Calvin Klein, Samsung Galaxy and Prada,

Meet Lu, another of Insragram's verified VIs who has 7 million followers on that platform alone and represents Brazilian retailer Magalu where she is a 'digital specialist.'

Lu Do Magalu has also partnered with Vogue, Redbull and McDonald’s.

And then, of course, there is one of the most famous brand faces in the world, Barbie. The iconic doll vlogs across TikTok, YouTube and Instagram having amassed millions of followers on each.

The Potential of Virtual Influencing For Brands Has Yet to Be Reached

With the advancement of AI solutions and their access to consumer data, the potential for VIs to offer personalized messaging that connects with individuals is becoming a reality, unless strict regulations are introduced to determine otherwise.

"The depth and complexity of AI influencers is mind-blowing. They can have emotional interactions, like Imma fighting with her brother Zinn, to having their own aspirations, beliefs and dreams. In the age of authenticity, inclusivity and sustainability, AI influencers can embody and drive real purpose," stated the Influencer Trends Report released by Ogilvy last year.

The attraction of VIs is not just limited to the public audience but to marketers. Using VIs over real ones leaves less room for human error as there is no need for reshoots, sourcing accommodation and dealing with tricky temperaments.

VI influencers offer marketing teams more creative freedom and in this era of short form entertainment, brands need to stay creative and innovative to keep clients interested. Virtual influencers can be perfectly tailored to fit the specific messaging of brand in a way that real influencers cannot. They are seemingly a perfect marketing tool.

So in this modern age of AI and virtual influencers, marketers must keep up to date and avoid being left behind while still maintaining a level of authenticity that is becoming increasingly attractive to the modern audience. Can the use of virtual influencers maintain this desired authenticity. Or are the two mutually exclusive? 

Virtual Influencers set to grow in marketer' plans

Fashion brands such as Prada have turned to major influencers such as Lil Miquela to lead their digital channels during tent pole events such as Milan Fashion Week. They do so because VIs are mailable and arguably more agreeable than many of their human influencer counterparts - willing to follow instructions where some humans may not.

According to the Influencer Marketing Hubs 2024 Benchmark Report, 62 per cent of marketers are already using or planning to use AI influencers and Gartner predicts that 30 per cent of influencer marketing budgets will redirect to virtual influencers by 2026.,

Leila Seith Hassan, chief data officer for Digitas UK, also sees the potential for VIs to offer AI-driven persuasion using personalisation at scale.

"Simplistically, if a consumer does this (looks at jeans on a site), we do that (show all jeans, perhaps in their size, sorted by a known preference). What if AI could converse with consumers about the occasion, concerns about how they’ll feel and other challenging aspects of jean buying? This type of personalisation - the nuanced, individual responses, have just become possible. It could help deliver real, human-centred personalised experiences that help consumers."

Potential dilemmas

Despite some clear advantages for brands, transparancy over the use of VIs is still being called for, with change seeming slow.

It is now over two years since India's Advertising Standards Council became the first national watchdog to mandate clear disclosure rules for AI-generated Influencer content. Meta has also acknowledged the need for ethical guidelines.

Meanwhile, the UK's Advertising Standard's Authority followed advice from the British government by declining to impose a policy that VI accounts should be watermarked to make it clear that they were not real people.

Social media platforms have also attempted to take responsibility: TikTok has revamped its community guidelines to require visible markings on realistic virtual Influencers in some markets.

Last summer, Ogilvy began an initiative calling on the advertising sector to introduce a policy to highlight when they were being used too, such is their potential - the AI Accountability Act.

"This essential step safeguards the core principles that make influencer campaigns impactful and ensures their authenticity and credibility... They hold significant influence in shaping the landscape. As influencers are integral to our marketing plans and valued by brands for their effectiveness, addressing this aspect promptly resolves a substantial part of the issue," Rahul Titus, Ogilvy's global head of influence, explained while writing for Creative Salon.

While virtual influencers offer great potential for creative freedom, the ethical implications of virtual influencers surrounding authenticity, beauty standards and transparency remain complicated and ever-present. With questions being raised as to where AI gains its data, brands need to maintain integrity in their use of virtual influencers so that consumers can continue to trust in their endorsement and ambassadorship. 

James Robertson feels that the need to maintain trust with audiences will require "a delicate balance between creativity and authenticity with consistent authenticity and clear guidelines.”

The opinions on virtual influencers and their uses are multifaceted but one fact remains definite, the creative industry does not hold back; it marches forward. So if it is marching forward with virtual influencers then marketers will proceed to do the same. If guidelines are created and kept with rigour then the rise of virtual influencers could mark a creative golden age in the advertising industry.