The rise of virtual influencers and what it means for customer engagement

Don’t believe the headlines claiming the metaverse is dead – it is merely evolving. The rising popularity of influencers inhabiting the virtual world proves this, with brands using digital avatars to engage with new audiences and sell their products. These computer-generated personas are redefining what we have come to know about influence and digital marketing and are no doubt transforming the concept of customer loyalty. But what exactly does a virtual influencer do?

What is a virtual influencer?

A virtual influencer is a computer-generated character designed to interact with and engage audiences on social media platforms. These digital avatars are entirely fictional and are created using technology including 3D modeling, animation and artificial intelligence (AI).

They can take on different forms, from heavily stylized cartoon-like figures to images that are so realistic it can be hard to tell them apart from humans.

Behind these creations are businesses, tech-savvy content creators and PR companies, who craft distinct personalities, traits and backstories for the digital personas to make them appear as real as possible. They interact with their audience through social media posts, videos, comments and even virtual appearances – a glance at the Instagram feed of virtual fashionista Noonoouri sees her posing alongside reality star Kim Kardashian, supermodel Gigi Hadid and Formula 1 racer Lewis Hamilton as if these were real-life fashion shoots.

 

 

 

 

 

View this post on Instagram

 

 

 

 

 

 

 

 

 

 

 

A post shared by noonoouri (@noonoouri)

The role of a virtual influencer is very similar to that of its human equivalent: promote products, collaborate with brands on sponsored content, engage with audiences and even raise awareness of social causes.

How do virtual influencers boost customer loyalty?

Their appearance and personality is created to resonate with a particular audience, with interactions carefully scripted using AI. As a result, followers relate to their characters and develop a trusting relationship with them. The added bonus of being computer-generated means that things can be tweaked to appeal to as many people as possible.

By maintaining a consistent presence on social media, sharing photos, videos and updates regularly their followers remain engaged – just like they would with their favorite celebrities.  

They can also reply to comments, creating the illusion of direct engagement, however these responses are usually automated using AI based on keywords or specific triggers. Many also interact with followers by taking part in live streams, virtual events and Q&As. These interactions help build the trust that impacts people's purchase decisions. 

Which brands use virtual influencers?

According to Statista, 35 percent of American consumers purchased a product or service in 2022 after a virtual influencer advocated for it, a significant figure given the relative infancy of this technology. Of this number, 40 percent of customers were millennials or Gen Z.

Big brands have swiftly jumped on board, with IKEA, Samsung, Nike and Amazon being just a few of the companies calling on the services of digital personas, who in many cases already have a large established following.

Fashion houses in particular are increasingly turning to virtual models, swayed by the convenience of not needing beauty, hair and styling teams or to scout out locations for fashion shoots. Prada, Calvin Klein and Cartier are among the high end brands using virtual influencers to promote their clothing and accessories. 

Not everyone is convinced though. A CX Network poll asking our community of CX professionals what they thought of virtual influencers found that 69 percent believed the idea is a “miss”.

One reason could be that human influencers have personally tried and tested the products they are advocating for, which isn’t possible with their virtual cohorts for obvious reasons. While younger consumers are more accustomed to transactions in the metaverse, it may be more challenging to build the same level of trust with older demographics.

The economic benefits of virtual influencers

Beyond their cultural significance, they can be highly lucrative, with top content creators earning millions. It is estimated that the annual income of Lu do Magalu, considered one of the world’s most famous virtual influencers, makes around US$ 16 million from sponsored Instagram posts alone.

Moreover, none of revenue generated needs to go towards compensating the influencer for their time, travel expenses or any other of the costs associated with humans.

And unlike humans, they can engage with audiences around the clock without needing breaks. This constant availability means they can endorse more products than a human influencer, with added visibility and engagement across different parts of the world.

Who are the most famous virtual characters?

Lu do Magalu

Lu do Magalu was conceived as the digital salesperson for Brazilian e-commerce site Magazine Luiza, used to promote its range of electrical and household goods. Magalu’s early work mostly involved sharing unboxing videos and product reviews, however she has since become a social media sensation in her home country, gracing the cover of Vogue Brazil, appearing in music videos, and advocating for the rights of the LGBTQ+ community.

Originally created in 2003, she can be considered a pioneer in the world of virtual influencers and today has more than 6.4 million Instagram followers and around 7 million on TikTok.

Lil Miquela 

Like many of her virtual peers Miquela Sousa, better known as Lil Miquela, promotes fashion brands including Prada, Dior, Burberry and Calvin Klein, but she also has a career as a pop star, releasing music videos on YouTube and appearing in photos with artists Diplo, Rosalia and Nile Rodgers.

Created in 2016 by Los Angeles-based AI startup Brud, Sousa has 2.7 million followers on Instagram and is reported to have a net worth of more than $10 million. In 2018, Time Magazine named her one of the 25 most influential people on the internet.

Noonoouri

Created by German digital artist Joerg Zuber, Noonoouri’s digital persona is that of a 19-year-old fashionista who has worked with top fashion houses Dior, Miu Miu and Valentino. Although her appearance is far less true to life compared to, say, Magalu, she is represented by real-life agency IMG Models, further blurring the boundary between the virtual and real worlds. She is also set to release her first single with German DJ Alle Farben.

Her Instagram feed (where she has a following of more than 400k) shows her on glamorous photo shoots and hanging out with celebrities, but as well as endorsing fashion labels she advocates for sustainability and animal rights.

Read more

• Customer experience in the metaverse
• The top customer experience influencers to follow in 2023
• Generative AI in CX 2023