Is it time to go with Virtual Influencers?

With the growth of AI in all aspects and its increasing role in the business environment, it's time to consider working with Virtual Influencers. They may have higher engagement and lower risk compared to traditional influencers. Relying on AI-generated personalities might offer a high-reward, low-risk setup. There are signs that people respond more to videos created by virtual personalities, and creating such a personality costs much less than working with actual influencers who often charge high fees regardless of results. For example, a company paid an influencer $55,000 for a post advertising their product, but the campaign resulted in zero purchases. Lastly, creating virtual personalities allows brands to tap into more diverse characters.

According to an HBR article, influencers earned $21 billion in 2023! Isn't that a crazy number? However, many customers view influencer collaborations with skepticism due to concerns about credibility, influence, and artistically directed content that sometimes leads to a loss of trust in the promoted products. Additionally, brands need to conduct rigorous vetting processes for influencers. If an influencer misbehaves off-camera and such behavior goes viral, it can bring down all the brands they have worked with. This was evident from past incidents.

According to a survey, 52% of U.S. social media users follow virtual influencers. Brands like Prada, Cartier, Disney, Puma, Nike, and Tiffany utilize virtual influencers to promote their products.

It may be time to explore these uncharted waters and actively build a comprehensive framework around virtual influencers in the region. Whether you choose to go this route or hire an influencer, you must consider factors such as engagement, reach, diversity, reputation risk, and cost.

Until next time!