The Rise and Risks of Virtual Influencers: Know the Insights

Artificial intelligence is changing the way we interact, use services, and perform jobs. In fact, it would be wrong to say that our houses and offices are not AI-enabled now.

While this is true, one of AI’s most prominent applications is in the marketing field—specifically through the emergence of virtual influencers. These virtual personalities are changing the way products and services are being marketed and raising various questions.  

While these virtual influencers have helped businesses shape a better market perspective, they pose some unique challenges, too. So, let us explore the rise and risk associated with these virtual influencers in the article over here.

Understanding Virtual Influencers

Virtual influencers are digital personalities that exist only on social media. These influencers do not have a physical existence. These are computer-generated personalities with the help of AI, advanced CGI, and other advanced technologies so that they can act like a human. 

According to Private Internet Access (PIA), there are over 200 virtual influencers on the social media platform. Broadly speaking, there are non-human to highly realistic type human-looking virtual influencers available. Some of the well-known virtual influencers are:

  • Lil Miquela
  • Shudu Gram
  • Lu do Magalu
  • Bermuda
  • Noonoouri

Features of Virtual Influencers

The prominent features of the virtual influencers are as follows:

  • It allows you to have full control over the appearance and look, which ensures a consistent brand image over multiple platforms and campaigns.
  • They have a global reach, which means connecting with audiences from different parts of the world becomes simpler.
  • Since they use high technology, the chances of gaining high engagement are higher.
  • Virtual influencers are quite budget-friendly compared to prominent high-end influencers.
  • Their approach is consistent, which means they go ahead with branding and messaging without fail.
  • Virtual influencers can take up multiple activities, which means they allow brands to scale quickly.
  • To a certain extent, the ability to adapt to changing marketing needs is better in virtual influencers than in human influencers.

While this is true, there are a few risks associated with virtual influencers that one should know before going ahead with using them. So, let us now explore the common risks that are associated with the use of virtual influencers for your brand. But before that, let us quickly look at the top reasons that led to the rise of virtual influencers.

Rise of Virtual Influencers

Virtual influencers are helping businesses quite prominently, and there is no doubt about that. However, there are various reasons behind the rise of virtual influencers to this prominent level.

So, here are the primary reasons why virtual influencers are on the rise.

1. Technological Advancements

People are looking for simpler and easier ways to market their products or services. This is mainly linked to the better technologies around. With the help of virtual influencers, the process not only becomes simpler but also more efficient. Also, creating these interactive digital personalities and syncing them with the brand is quite quick.

2. Increased Online Engagement

For any business, the primary concern is to increase their reach. The main way to do the same is to go for proper online engagement strategies. With virtual influencers, it is easier to reach a global audience and engage better online in less time.  

3. Brand Safety

One of the major concerns associated with marketing is to ensure brand safety and consistency. With virtual influencers, managing both is quite simple. You can be assured that your brand messaging remains consistent over multiple platforms without any problem. Additionally, the duration, timeline, and even frequency will remain consistent with your needs.

4. Cost-Effectiveness

The cost of managing and using a virtual influencer is quite low compared to that of a human influencer. Once you have created the influencer, you can use it for as long as you need without making any additional payments or charges. Also, you can make changes in appearance, tonality, and other features as per your business needs.

5. Innovative Appeal

People are always searching for something new, and there is nothing better than technological novelty. Considering the use of virtual influencers will allow you to have a better approach to innovation. When you use the cutting-edge technology of the virtual influencer, you are in a better position to approach the market in a catchy and comprehensive manner, which is really beneficial. 

Now, these are the main reasons for the rise of virtual influencers over the years. However, there are a few concerns and risks that need to be addressed. So, let us explore this in the section over here. 

Risks Linked to Virtual Influencers

Though there are various aspects that support the growing use of virtual influencers, there are also a few aspects that define the risks associated with them. Understanding those risks is important to ensure a positive outcome from the use of virtual influencers for the business. So, here are the primary risks that you should be aware of:

1. Authenticity Concerns

Virtual influencers have no history or story to back their presence. They are online personalities that are created virtually, so the questions linked to their authenticity or genuineness are always there. There is a chance that this might reduce the overall effectiveness of the campaign and impact credibility and trustworthiness to a certain extent. 

2. Over-Reliance on Technology

Technology is helpful and supportive, but depending on it, a lot can be really daunting. This is also applicable to using virtual influencers. When you use virtual influencers, you are relying on tech for all your promotions. No, if there is any problem with the technology, then you might not be able to use the same for promotion, which can impact your campaign.

3. Public Backlash

Every marketing activity that you undertake is for the purpose of building a positive image among the public. But if your audience feels that your campaigns or influencing strategies are unethical or deceptive, then there is a chance of facing a backlash. This problem is not there with human interactions to a great extent, so your overall campaign strategy can be impacted.

4. Regulatory and Ethical Issues

Virtual influencers are rising quite rapidly, but there are some ethical considerations linked to them. Issues such as consumer deception, where the line between reality and marketing is blurred, might lead to legal challenges and demands for clear disclosures. Therefore, ensuring that the campaigns work in the ethical brackets is quite important. 

5. Lack of Emotional Depth

Virtual influencers are nothing but advanced technology-based artificial humans. They do not possess the emotions like an actual person. This is one of the primary reasons that they fail to react appropriately in emotional situations. This can impact the overall campaign at times. 

6. Potential for Misuse

Everything that links to the virtual influencers is linked to the digital world. There is no link between them and the real world, and there are chances of hacks as well. So, if these influencers land in the hands of the wrong users, the potential for misuse is way higher, which can impact the brand image and even the people around them.

7. High Initial Costs

Though the overall cost of running the virtual influencer, in the long run, is low, there are chances that the initial cost of the same will be high. The initial creation and maintenance of virtual influencers require significant investments in advanced technology and skilled personnel. These high upfront costs can be a barrier for smaller companies and may not always guarantee a return on investment.

Conclusion

There is no doubt that virtual influencers are changing the way businesses interact with customers. These are not only innovative ways to market the products and services but also some of the best solutions. While they offer numerous advantages such as cost-effectiveness, global reach, and brand safety, potential risks cannot be overlooked. 

Concerns around authenticity, emotional depth, and the potential for public backlash highlight the need for careful consideration and ethical practices in their implementation. As businesses continue to explore the possibilities of virtual influencers, it is crucial to balance these innovative tools with transparency and a commitment to authenticity. 

This approach will not only help mitigate risks but also enhance the trust and engagement of consumers. By navigating these challenges thoughtfully, brands can effectively harness the power of virtual influencers to achieve a sustainable and positive impact in the ever-evolving digital marketing sphere.

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