Rise of Virtual Influencers in Marketing

Influencer marketing has evolved into a crucial marketing strategy, with 86% of brands allocating budgets for it in 2024, driven by the fact that 63% of shoppers trust recommendations from social media influencers. While traditional celebrities remain influential, everyday individuals can also serve as effective influencers, leveraging their established trust with audiences. In-person events organized by creators, including animated show screenings, foster community and provide additional revenue streams, while virtual influencers, powered by AI, are emerging as cost-effective alternatives for brands like Dior and BMW. However, concerns about authenticity and job displacement for human influencers arise as these digital personas gain traction. Despite the rise of virtual influencers, consumers, particularly Gen Z, still prefer recommendations from real individuals. This dynamic suggests a complex future for influencer marketing as brands navigate between human and virtual endorsements.