BY Kathy Crosett
Influencers have been wildly popular with consumers and marketers for years. But there’s a new influencer marketing trend capturing attention and marketer budgets. More businesses have been turning to virtual influencers.
The Rise of Influencer Marketing
Influencers are set to capture $7.14 billion in marketing dollars in 2024. The arrangement has been lucrative for marketers and their influencers. Analysts estimate that the typical marketer makes “$5.20 for every $1” of influencer investment.
With these kinds of returns, it’s easy to see why businesses invest in this format.
In addition, there is no shortage of available influencers. Marketers have their choice — ranging from nano to macro. These naming conventions are linked to the size of the audience an influencer commands.
In exchange for their favorable posts on social media, influencers can earn anything from free products to a fee of $5,000 or more.
Marketers use influencers to primarily connect with younger consumers. At least 32% of Gen Z consumers have made a purchase of a product that was unknown to them prior to an influencer’s post.
The social platform selected by influencers makes a difference too. We recently pointed out study that highlighted the emerging importance of TikTok for influencers.
The Shift to Virtual Influencers
While marketers have enjoyed great benefits from influencers, they also face risks. Sometimes, the influencer’s public image changes and is at odds with a brand.
If too many of your client’s competitors are using influencers, they may not gain the visibility they are hoping for.
These factors, along with rising costs, are prompting more marketers to explore going virtual. This is becoming a key influencer marketing trend.
This shift is happening as AI technology advances and marketers become comfortable with the metaverse.
Virtual influencers range from computer-generated personas to other types of beings. Typically, your clients will use them in the context of their brand.
Virtual influencers exist entirely in social media. Their interactions with a product are not real, of course. But these influencers will also ask questions of their followers to boost engagement.
There are a few details to consider, though.
Consistency
Brands like virtual influencers because these characters do not age or have days when they are unavailable. In addition, they can be used across many regions and be programmed to speak any language.
Accepted
And what do consumers think? In a recent NAB Show post, the editors reported that 53% of surveyed consumers follow at least one influencer. Even better, 29.5% of surveyed consumers relied on a virtual influencer’s recommendation for a product they purchased.
Not every consumer is ready to follow a virtual influencer. In fact, 32% of surveyed consumers noted that they prefer to follow and interact with a real person. This attitude will be a challenge for this latest influencer marketing trend.
Your clients may want to consider consumer hesitation if they plan to use one of these ambassadors.
Tech-based Limitations
Another drawback to using virtual influencers is that some of their interaction is AI-based. Marketers can’t yet trust that these ambassadors will respond to requests or questions from fans in an appropriate manner.
In addition, they don’t interact physically with the “product being promoted.” That aspect of the trend, coupled with the “unrealistic lifestyle” being portrayed, may generate criticism.
Top Verticals for Virtual Influencers
A top influencer marketing trend this year is to go virtual. But not all marketers are on board.
This trend seems to be more prevalent in the following industries:
- Technology 33.5%
- Fashion 28.9%
- Gaming 36%
The scores are much lower for other verticals such as education/online courses (3.9%) and sustainability/environmental causes (3%).
Influencers, whether they are real or virtual, have an impact on consumers. You can learn more about frequent social media influencer responders by checking out AudienceSCAN from AdMall. When influencers connect well with the target audience, they impact consumers of all ages.
As you discuss strategy with your clients, remind them of the benefits and challenges of this new trend.
Photo by Ron Lach on Pexels.