AI-Driven Virtual Influencers Impacting Marketing

In the ever-evolving landscape of social media and content creation, a new phenomenon is taking centre stage – virtual influencers. These computer-generated personalities, driven by artificial intelligence, have disrupted the traditional influencer market, leaving human influencers questioning the future of their livelihoods. As we delve into this captivating realm, we explore the controversies, benefits, and the potential impact of these digital avatars.

Aitana Lopez, with her vibrant pink hair, has amassed over 200,000 followers on social media. However, there’s a twist – she is entirely fictional. Created by Barcelona-based agency The Clueless, Aitana is one of many virtual influencers that have infiltrated the $21 billion content creator economy. The intention behind her creation? Disrupting an overinflated market where influencers charge exorbitant fees for their promotional posts.

Diana Núñez, co-founder of The Clueless, sheds light on the motivation: “We were taken aback by the skyrocketing rates influencers charge nowadays. That got us thinking, ‘What if we just create our own influencer?’ The rest is history. We unintentionally created a monster. A beautiful one, though.”

The emergence of virtual influencers has sparked concern among human influencers who fear their income is being cannibalised by these digital counterparts. Yet, proponents of virtual influencers argue that they are merely disrupting an industry plagued by inflated costs. Brands, quick to adapt to this new trend, find virtual influencers appealing due to their ability to attract attention at a fraction of the cost.

According to an Instagram analysis, a virtual influencer like Kuki from an H&M ad reached 11 times more people, resulting in a 91 percent decrease in cost per person recalling the ad compared to traditional advertising methods. The allure lies in the control brands have over virtual influencers, avoiding potential controversies and demands associated with real influencers.

While virtual influencers offer a cost-effective solution for brands, concerns about authenticity and transparency arise. Many virtual influencers, like Aitana, do not explicitly disclose their artificial nature, leading to confusion among followers. Human influencers argue that their virtual counterparts should be obligated to disclose their non-human status.

In the UK, the Advertising Standards Agency is aware of the rise of virtual influencers but does not mandate disclosure of their AI-generated origin. In contrast, India requires virtual influencers to reveal their AI origins, highlighting the need for global guidelines in this rapidly evolving space.

Diversity is another aspect under scrutiny, with virtual influencers often criticised for their lack of representation. Some argue that the creation of virtual avatars with racially ambiguous features is merely a marketing ploy to target broader audiences, conveniently aligning with progressive ideals.

The intersection of artificial intelligence and advertising is a fascinating one. Meta’s case study showcases the success of an H&M ad featuring Kuki, a virtual influencer, with an “11x increase in ad recall” and a significant decrease in cost per person remembering the ad. This success is attributed to the novelty factor and the ability of virtual influencers to manipulate certain campaign metrics.

However, it’s crucial to note that virtual influencers, like Lil Miquela, often operate as spokesmodels in ads rather than building their own audience. The threat to human influencers seems to be from the low end, where virtual influencers replace secondary sources of income but fall short in comprehensive audience influence.

As we step into the future, virtual influencers are not merely a passing trend; they represent a transformative shift in the way content is created, consumed, and marketed. From CGI technology to motion-capture and AI tools, the creation of virtual influencers continues to evolve.

The transparency issue remains a significant challenge, and global guidelines are essential to ensure ethical practices in the use of virtual influencers. The debate on whether virtual influencers will replace their human counterparts or coexist continues, with the current consensus leaning towards the latter.

**Conclusion: Navigating the Uncharted Waters and Shaping the Future**

In a world where the lines between reality and virtuality are increasingly blurred, the rise of virtual influencers has become an intriguing phenomenon. Brands find them cost-effective, followers find them captivating, and human influencers find them threatening.

As the digital landscape evolves, the challenge lies in finding a balance between the benefits of AI-driven influencers and the ethical considerations surrounding transparency and diversity. The future may see virtual influencers becoming integral players in the content creation game, coexisting with their human counterparts to shape the next chapter in the influencer economy.

Expanding beyond the current landscape, it’s essential to consider the potential evolution of virtual influencers. As technology advances, these digital avatars may develop a more profound ability to connect with audiences on a personal level. The blurred lines between real and virtual may fade, giving rise to a new era of influencer marketing that combines the authenticity of human interaction with the innovation of AI.

In this transformative era, collaboration between human and virtual influencers could become the norm, offering a unique blend of creativity, relatability, and cost-effectiveness. As content creators navigate these uncharted waters, the key will be adaptability – embracing the opportunities presented by virtual influencers while addressing the concerns of transparency and representation.

Ultimately, the future of influence lies in the hands of those who can seamlessly weave the digital and the human, creating a harmonious symphony that resonates with audiences across the ever-expanding digital landscape.

for all my daily news and tips on AI, Emerging technologies at the intersection of humans, just sign up for my FREE newsletter at www.robotpigeon.beehiiv.com