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Will virtual influencers dominate online advertising? Limited human interaction during the pandemic has contributed to the growing demand for digital brand faces or digital spokespeople on online media channels and social networks.
According to The Business Insider Intelligence, brands spend up to $15 billion per year on influencer marketing campaigns by 2022, up from $8 billion last year. The market share for influencers in the virtual world (Virtual Influencer, abbreviated VI) is growing. The traditional way of marketing is being threatened by virtual humans. Read on to learn more!
Will virtual influencers dominate online advertising?
To be able to answer this question, let’s take a look at the benefits that virtual influencers bring:
Virtual influencers are not fancy. They obey absolutely.
Seraphine’s long pink hair and photos with cats attracted thousands of fans when the news broke: Seraphine is a product of the studio Riot Games Inc – the software company that creates the famous game Lord of Legends.
Currently, the number of followers on her account has reached nearly 400,000. Seraphine is also present in Shanghai to promote her music, while the flesh-and-blood stars are contained at home because of the blockade orders. Although not a real person, sometimes Seraphine still wears a mask.
The most influential figures can attract sponsorship brands, but some contracts are expensive. With 2.8 million followers and an ad fee of $8,500 per post, Lil Miquela – the model who promotes Calvin Klein, Prada, and other fashion labels – is the highest-earning person in the virtual industry, according to data from the UK-based online marketplace OnBuy.
OnBuy estimates Lil Mequla makes about $11.7 million for her producers this year. When the Covid-19 epidemic caused product launches and tours to be canceled. Real-life influencers lost revenue. Meanwhile, Lil Miquela has been running around tired, recently presenting a music video during the Lollapalooza online music festival.
The epidemic has taken the reputation of VIs further. But the real drivers of the new trend are Generation Z – some researchers say the generation born between the late 1990s and early 2010. Team Z will number 2.56 billion by the end of the year.
As the oldest Generation Z members are in their mid-20s, their incomes also increase. And this is the customer file that is noticed by marketers. According to consulting firm McKinsey & Co, millennials and Generation Z have a purchasing power of $350 billion in the US market alone.
>>>Read more: Real time Virtual Production using Unreal Engine
Venture capitalists pay attention.
Superplastic Inc. — the Vermont-based animation firm and the entertainment company that creates popular virtual characters like Janky and Guggimon, as well as some toys and clothing — raised $10 million in seed funding in August 2019 and another $6 million last October.
Browsing through your phone screen, you can’t believe that the character Imma – with his bright pink hair, strange dance moves, and gorgeous costume – is computer-generated. Over 300,000 Imma’s Instagram followers.
And sponsor brands are as diverse as Salvatore Ferragamo SpA; Taking photos for fashion magazines and participating in contests is trending on TikTok – including clips with more than 5.6 million views.
Her blog posts include art gallery tours. And in a campaign for Swedish company Ikea, Imma “lived” in Ikea’s booth in the Harajuku district in Tokyo, Japan.
Aww employs about 20 people, most with film production experience. The company uses 3D scanning technology, describing movements and real faces and models to create characters. Some of the characters are used in game engines – tools used by developers to create video games.
>>>Read more: Top 10 Famous Virtual Idols in Japan [2023 Updated]
F.A.Q.s
Are influencers more effective than ads?
Brands can increase sales more successfully than through paid media by collaborating with the right influencers to reach new and pertinent audiences. Influencer marketing is a potent tool for brands to instantly establish credibility and trust to boost sales and brand recognition.
Why are virtual influencers important?
Reaching a new, younger audience is one of the main benefits of working with virtual influencers. Younger audiences seem to be particularly interested in this new media content, therefore influencer collaborations may make it possible for businesses to reach this market more successfully.
Are virtual influencers effective?
Through their social media material, virtual influencers can accurately and consistently represent the brand’s identity and values. Additionally, they eliminate the possibility of celebrity partners acting out in real life because virtual influencers merely exist on social media.
Are virtual influencers here to stay?
Virtual influencers are here to stay, whether you like them or not. They stand for the height of shameless marketing when the human voice and influence are transformed into a digital object with the sole intent of making a sale.
What is the size of the virtual influencer market?
Virtual influencers have a market worth $4.6 billion and are predicted to rise 26% by 2025, according to marketing firm Territory Influence. 40% of Gen-Z and Millennial consumers in the United States purchased in 2022 after seeing a product or service recommended by a virtual influencer.
>>>Read more: The Top 10 Virtual Influencers in The World of 2023
Conclusion
So, it is very difficult to answer the question: Will virtual influencers dominate online advertising? The mix of real and surreal worlds has strong visual appeal and makes money. There is no limit to content creation and everything now depends only on how creative the computer can be. Please look forward to Animost‘s latest articles on the topic of virtual humans!
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Animost – Vietnam 3D Animation Studio
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