A POV about Virtual influencers and their impact on consumer behaviour and the market. A depth into who is following them, and how are they connecting with the consumers.

1. 6/9/2023
Virtual
Influencers
Digital trend #2

2. Content.
Introduction
3
Industry
4
Consumer
behaviour
5-8
Marketing
opportunity
9
Cons & Pros
10
Campaign examples
11-13
Summary
14

3. Virtual Influencers.
Virtual influencers are captivating digital characters that are designed to
mirror human qualities and have become a new trend in the field of
influencer marketing. These computer-generated personalities have a
substantial influence over their online followers, by reshaping consumer
behaviour and challenging traditional norms in the digital landscape.
Introduction

4. The market size for virtual influencers is $4.6 billion
and is expected to grow 26% by 2025. It has a lot of
potential to grow in the next 5 years, which mean
more industries will be using Virtual influencers to
promote their brand and services.
In the following slides, we will discuss several
interesting findings regarding virtual influencers and
their impact on consumer behaviour.
Virtual influencers Industry
& consumer behaviour:
“2023 ‘Virtual Influencers Market’ Trends: A Detailed Analysis and Outlook Till 2030”

5. Age
Demographics.
Marketers can recognize this
generational divide and make
their strategies tailored
accordingly.
• Younger consumers, aged 18 to 44, are
more interested in following virtual
influencers.
• There’s a shift in consumer behaviour,
where young individuals are being more
receptive to digital content.
• As the age increases, the interest in
virtual influencers becomes lower.
(Influencer marketing in the U.S., Statista)

6. Platform
Preferences.
Companies aiming to
collaborate with Virtual
influencers should prioritize
these platforms in their
marketing efforts.
• Virtual influencers are mostly followed
through YouTube, Instagram and Tiktok.
Which provides an engaging space for
Virtual influencers to engage with their
audience.
• Consumers follow virtual influencers,
mostly for their content, storytelling and
15.5% said that they inspire them.
(Top platforms consumers follow virtual influencers us, Statista) (Metaverse advertising and marketing in the United States, Statista)

7. Influencer
Perception.
Companies can use this to
endorse their products and
services, if it’s aligned with the
values and image of the virtual
influence’s character
• Consumers in the age group of 35-44,
show high levels of trust and relate to
virtual influencers. The age group 18-44
has a higher tendency to buy a product or
service promoted by virtual influencers.
• Virtual influencers have the ability to
establish a genuine connection with their
audience, mimicking real-life influencers.
(Metaverse advertising and marketing in the U.S., Statista)

8. Sponsorship
Disclosure.
Marketers should find a way to
sponsor a product using virtual
influencers, by not making it
upfront but rather making it
blend with what’s happening.
• When a sponsorship disclosure is
present, it significantly impacts the
perception of virtual influencers.
• This leads to lower message credibility
and diminishes the positive effect a
human-like virtual influencer has.
(Kim et al, 2023)

9. Virtual Influencers are
transforming marketing
efforts
Virtual influencers can provide a new and impactful
approach to brand messaging. Using virtual influences
that will help inspire, spark conversations, offer brands
complete control over their projects with limitless
creative possibilities which can help cut costs (you can
create environments and travel with pixels).
instagram/@lilmiquela

10. Pros
• Virtual influencers can portray
unrealistic lifestyles and body shapes.
• Virtual influencers can’t physically
interact with a product.
• Lack of authenticity which might reduce
customer trust.
• Virtual influencer marketing is an
uncharted territory, which can cause
brands the risk of being controversial.
• Virtual influencers can produce more
cost-effective campaigns.
• They do not age and set the stage for
longer partnerships.
• Travel and physical barriers do not exist
in the virtual world.
• Brands have complete control over
campaigns.
• Campaigns can be unique and
memorable.
Cons
(The Pros and Cons of Virtual Influencers, 2023)

11. Hauli featured Ralph and Russo haute
couture collection, which was surrounded
by exotic places around the Earth. The
brand received more than 202000 visitors
and 490000 page views after the
campaign went live. Had 19.4 Million
worldwide views. Ralph and Russo
witnessed a media impact value of 65.1
Million USD with just a virtual model and
digital clothing. (Virtual Models meet
luxury, 2020)
#01
Hauli
With Ralph
& Russo

12. Kox Frost, a virtual influencer who is
known for promoting health and wellness,
mainly in mental health, collaborated with
WHO to reach a younger audience who did
not care and ignored social distancing
during COVID-19.
This campaign gained PR attention with
coverage from AdAge, Adweek, Mashable,
BuzzFeed News.
This campaign highlights the importance
of collaborating with VI to reach a young
audience and raise awareness
#02
Knox Frost
with WHO

13. Samsung’s collaboration with virtual
influencer Lil Miquela for their Team
Galaxy campaign showcased the brand’s
understanding of technology trends and
their ability to strategically combine the
campaign’s messaging with the perfect
influencer, which led to a successful and
ongoing partnership that enhanced
Samsung’s brand image.
#03
Lil Miquela
With Samsung

14. Summary
Virtual influencers are acting as a changing force in marketing, by offering brands a unique and
impactful approach to messaging. With their realistic personalities and standing for important
causes, they’re inspiring and connecting with their target audiences and providing complete control
for businesses over their projects which is helping them in amplifying their reach and influence.
From my perspective, the rise of this trend will provide brands with exciting opportunities to
reshape their marketing strategies and drive meaningful consumer engagement. Brands need to
adapt and make use of virtual influencers to create unique and memorable experiences to have
stronger connections with their audience.

15. Thank
You!

16. References
1. “5 Notable Virtual Influencer + Brand Partnerships.” 5 Notable Virtual Influencer + Brand Partnerships — VirtualHumans.org, 30 Aug. 2018,
www.virtualhumans.org/article/5-notable-virtual-influencer-brand-partnerships.
2. admin. “Virtual Models Meet Luxury Brands : How Are They Being Used?” VS-LB, 25 Nov. 2020, vs-lb.com/virtual-models-meet-luxury-brands.
3. “The Pros and Cons of Virtual Influencers.” Emplifi | Customer Experience & Social Media Marketing Software, 7 Mar. 2023, emplifi.io/resources/blog/virtual-influencers-
pros-and-cons.
4. https://www-statista-com.libaccess.senecacollege.ca/statistics/1303988/top-platforms-consumers-follow-virtual-influencers-us/. www-statista-
com.libaccess.senecacollege.ca/statistics/1303988/top-platforms-consumers-follow-virtual-influencers-us.
5. https://www-statista-com.libaccess.senecacollege.ca/statistics/1304092/consumers-bought-product-promoted-virtual-influencers-age-group-us/. www-statista-
com.libaccess.senecacollege.ca/statistics/1304092/consumers-bought-product-promoted-virtual-influencers-age-group-us.
6. Kim, Eunjin (Anna), et al. “The Next Hype in Social Media Advertising: Examining Virtual Influencers’ Brand Endorsement Effectiveness.” Frontiers, 27 Jan. 2023,
https://doi.org/10.3389/fpsyg.2023.1089051.
7. https://www-statista-com.libaccess.senecacollege.ca/statistics/1302739/reasons-consumers-follow-virtual-influencers-us/. www-statista-
com.libaccess.senecacollege.ca/statistics/1302739/reasons-consumers-follow-virtual-influencers-us.
8. https://www-statista-com.libaccess.senecacollege.ca/statistics/1303988/top-platforms-consumers-follow-virtual-influencers-us/. www-statista-
com.libaccess.senecacollege.ca/statistics/1303988/top-platforms-consumers-follow-virtual-influencers-us.
9. “2023 ‘Virtual Influencers Market’ Trends: A Detailed Analysis and Outlook Till 2030.” MarketWatch, www.marketwatch.com/press-release/2023-virtual-influencers-
market-trends-a-detailed-analysis-and-outlook-till-2030-2023-04-27.
10. “The Benefits of Investing in Virtual Influencer Marketing.” SoftProdigy |, 20 Jan. 2023, softprodigy.com/virtual-influencer-marketing-changing-game.
11. “Virtual Influencers Survey + INFOGRAPHIC - Influencer Marketing Factory.” Influencer Marketing Factory, 29 Mar. 2022, theinfluencermarketingfactory.com/virtual-
influencers-survey-infographic.