Virtual Influencers: Innovative Branding Tool or Brand Risk?

Virtual Influencers: Innovative Branding Tool or Brand Risk?

“The future belongs to those who embrace it with an open mind and a discerning eye.”

As digital landscapes evolve, brands turn to virtual influencers to engage audiences in new ways. Human influencers bring authenticity but also carry risks like scandals and potential brand misalignment. In contrast, virtual influencers allow brands greater control over messaging and offer distinctive customer experiences, though they also come with their own set of challenges.

What are Virtual Influencers?

Virtual influencers are digitally created personas designed to interact with audiences on social media. Notable examples include Lil Miquela, who boasts over 2.5 million followers on Instagram, where she shares aspects of her “life,” collaborates with major brands like Prada, and Dior, and even partners in campaigns like BMW.

BMW YouTube

Source: BMW/YouTube

Shudu, another virtual influencer and the first digital supermodel, has worked with Balmain and Fenty. These collaborations highlight virtual influencers’ appeal, particularly in innovative, boundary-pushing campaigns that resonate with younger, tech-savvy audiences who embrace digital-first experiences.

Virtual Influencers: A Passing Trend or Long-Term Strategy?

Virtual influencers have steadily gained popularity, yet questions remain about their longevity. With ongoing advances in AI, CGI, and AR, these digital personalities have the potential to become a mainstay in brand storytelling. A 2024 Wiley study found that audiences tend to respond positively to virtual influencers, amplifying positive word-of-mouth marketing. Research from the Harvard Business Review similarly shows that virtual influencers often drive higher engagement in paid promotions than human influencers, making them a valuable addition to brands’ marketing efforts.

Human vs. Virtual Influencers: Key Challenges and Opportunities

Human influencers are relatable but can be unpredictable, as they may promote competing brands, engage in controversies, or fail to align with a brand’s image. For instance, beauty influencer James Charles lost partnerships in 2021 due to a scandal. Virtual influencers, such as Lil Miquela, are entirely created and managed by brands, avoiding these risks altogether

Virtual influencers have challenges, particularly with authenticity. While they can replicate human behavior, they may not connect deeply with audiences who value genuine, unfiltered content. Tech-savvy younger consumers may be drawn to their novelty, but those seeking emotional connection might find them less engaging. Brands need to assess if virtual influencers align with their values and target audience. Industries like fashion, tech, and gaming, focused on innovation, tend to benefit from them, while brands emphasizing human connection may struggle to integrate virtual influencers naturally.

Building a Balanced Influencer Strategy

Brands should balance the appeal of long-term partnerships with human influencers against the innovative reach virtual influencers offer. Just as they leverage nano, micro, macro, and mega influencers to achieve diverse levels of reach and authenticity, a mix of human and virtual influencers can create a dynamic, engaging strategy that resonates across varied audience segments.

A notable example is Calvin Klein’s 2019 campaign featuring virtual influencer Lil Miquela alongside supermodel Bella Hadid. This collaboration allowed Calvin Klein to reach tech-forward audiences while maintaining an air of authenticity and luxury.

Calvin Klein – Supermodel Bella Hadid with Virtual Influencer LilMiquela

Source: Advertisement from Calvin Klein – Supermodel Bella Hadid with Virtual Influencer LilMiquela

Testing the impact of virtual influencers through small, focused campaigns can also be beneficial. By closely monitoring KPIs and engagement metrics, brands can effectively evaluate the effectiveness of virtual influencers, deciding whether to incorporate them more fully into their long-term marketing strategies.

Conclusion

Virtual influencers allow brands to engage audiences in a highly controlled, creative way, appealing particularly to tech-forward industries. A thoughtful strategy that combines both human and virtual influencers can provide brands with the flexibility to attract both authenticity-seeking and innovation-driven consumers.

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