Virtual Influencers in 2025: Opportunity or Gimmick?

Virtual influencers are AI-crafted digital personas – think CGI avatars with human-like traits – that exist solely on social media. They post photos, share opinions, reply to comments, and even collaborate with brands just like human influencers, except they’re not real people. Behind each virtual influencer is typically a team (or sophisticated AI) controlling everything from their appearance to their witty captions. For example, Lil Miquela (one of the first virtual influencers) boasts ~2.5 million Instagram followers as a fashion-forward, fictional “it girl.” Likewise, Lu do Magalu – a virtual avatar created by Brazilian retailer Magazine Luiza – has become one of the most popular, with over 8 million followers and the ability to earn £32,000+ for a single Instagram post promoting tech products. In short, these characters are content creators engineered by brands or agencies to engage audiences without the unpredictability of a human personality.

The Allure of Virtual Influencers: An Opportunity for Brands

Why are marketers experimenting with virtual influencers? Simply put, these virtual personas offer some unique advantages over their human counterparts:

• • Always On & On-Brand: A virtual influencer never sleeps, takes a vacation, or goes “off-script.” Brands have complete control over the avatar’s look, personality, and content, ensuring the messaging is perfectly on-brand at all times. There’s no risk of a virtual spokesperson getting embroiled in a personal scandal or posting an off-color tweet – no more PR surprises for your brand. For Amazon sellers or DTC brands wary of real influencer unpredictability, this 24/7 consistency is a big draw.

     

  • Scalability & Cost Efficiency: After the initial investment to create a virtual influencer, content production can be scaled relatively easily. There are no travel or event costs, and one digital avatar can “appear” in multiple places at once. In fact, virtual influencers often end up more cost-effective, since you don’t pay per trip or photoshoot – you generate everything in-house via software. For example, a single CGI character can model an entire clothing line digitally, saving on logistics. This predictable cost structure appeals to brands looking to maximize ROI.

     

  • Higher Engagement (When Done Right): Early data shows that virtual influencers can drive notable engagement. Harvard Business Review found that AI-driven influencers delivered 13% higher engagement rates than typical organic posts when brands integrated them into paid strategies. In one high-profile case, Prada’s campaign with Lil Miquela netted about 30% more engagement than the brand’s usual Instagram efforts. These AI avatars spark curiosity – users often do a double-take at the realistic yet surreal content, which can translate into extra likes, shares, and comments. For brands, especially in visual industries like fashion, beauty, or gaming, that novelty factor can boost visibility.

     

  • Innovative Storytelling & Reach: Virtual influencers open creative possibilities that human creators simply can’t. They can instantly change their hair color, teleport to fantastical locations, or even exist inside video games. This futurist storytelling appeals to younger, tech-savvy audiences. Notably, Gen Z consumers (who grew up with The Sims, VR, and avatars) are remarkably receptive – about 40% of Gen Z has followed a virtual influencer on social media. In markets like South Korea and Japan, some virtual characters have become pop-culture icons. Brands that leverage these avatars signal a cutting-edge image, potentially pulling in new audience segments fascinated by tech trends.

     

  • Personalization at Scale: Because these influencers are AI-driven, they can theoretically tailor content to different audience segments with precision. Need your influencer to speak multiple languages or adapt to niche communities? An AI persona can be re-programmed or styled to fit each campaign. This flexibility means an e-commerce brand could use one virtual influencer as a global brand ambassador, tweaking her looks or messages for each region’s tastes. It’s a level of campaign personalization that is hard (or costly) to achieve with one human influencer.

Real-World Success Stories: Far from being science fiction, virtual influencers have already notched some wins. Aside from the Prada example, Riot Games created a virtual pop group (K/DA) to promote a video game, amassing millions of fans and massive online buzz in the process. Luxury brands like Louis Vuitton have featured virtual characters (e.g. Lightning from Final Fantasy) in ad campaigns, reporting boosts in social media followers and engagement. And of course, Lu do Magalu in Brazil is practically a case study herself – as a virtual influencer tied to an e-commerce retailer, she blends entertainment with direct product promotion (unboxing videos, tech reviews) and has become the world’s top-followed AI influencer, illustrating how a brand can build a huge audience around a virtual personal. These cases suggest that, under the right conditions, virtual influencers can be more than a gimmick – they can drive real conversations and even sales.

The Gimmick Factor: Why Brands Are Cautious

Despite the hype, many marketers are tapping the brakes on virtual influencers. It turns out there are some serious concerns and challenges that make this trend feel gimmicky or high-risk to skeptics:

• • Authenticity and Trust Issues: Today’s consumers (especially older demographics) prize authenticity. By definition, a virtual influencer isn’t “authentic” – their life, opinions, and even face are fabricated. This can lead to audience skepticism. In fact, 96% of brands who avoid virtual influencers cite lack of consumer trust as the top concern. People might enjoy a quirky CGI character, but will they trust a product recommendation from one? There’s a fine line between novel and phony. An AI avatar promoting a skincare cream might prompt eye-rolls if buyers question whether a digital character actually uses the product. The risk is that virtual influencers come off as corporate puppets, potentially hurting brand credibility if not handled with care.

     

  • Lack of Human Connection: Influencer marketing succeeds largely because of human-to-human connection – fans feel like they know the influencer. Virtual influencers, no matter how charming, lack real human experiences. They can’t share a genuine personal story or relatable struggle, which are the kind of organic moments that build tight-knit communities. User-generated content (UGC) from real customers or micro influencers often resonates because it’s real. A photoshopped-perfect avatar might generate curiosity, but it may not foster the same emotional loyalty as a genuine content creator who can hop on Instagram Live and chat authentically. In essence, critics see virtual influencers as all style, no substance – great for a quick hit of engagement, but not for building long-term trust.

     

  • Engagement Doesn’t Equal Influence: Are people engaging with virtual influencer posts out of interest in the persona, or interest in the products they tout? There’s evidence that the quality of engagement might be lower. For example, Lil Miquela – arguably the most famous virtual influencer – has seen her follower count drop by over 140,000 in the past year, and her engagement rate now sits in the bottom quartile compared to human influencers. That suggests the novelty may be wearing off; people follow initially but don’t stick around. If a virtual influencer isn’t retaining a truly engaged community, then their ability to influence (drive actions like clicks or purchases) could be limited. Brands might get likes from a CGI campaign, but do those translate to ROI? The jury is still out.

     

  • Brand Reluctance and Backlash Fears: After an initial wave of enthusiasm, many brands are pumping the brakes. One analysis found that the share of marketing campaigns including AI or virtual influencers plummeted from 86% in 2024 to about 60% in 2025. In other words, there was a nearly 30% drop in brand interest year-over-year. What happened? Marketers grew wary of potential backlash and murky ROI. There’s a fear that jumping on the AI avatar bandwagon too early could make a brand look tone-deaf or inauthentic if consumers aren’t ready to accept virtual spokespeople. This caution is especially pronounced in industries where trust is paramount (imagine a virtual influencer promoting healthcare or finance – audiences might not take it seriously). As one influencer platform founder put it, the idea of virtual influencers may be “blown out of proportion” by media buzz right now, and the data hasn’t yet caught up to the headlines.

     

  • Ethical and Legal Questions: Virtual influencers also raise new questions: Who is responsible if an AI persona says something misleading or problematic? (Ultimately, the brand is – which is why scripts must be carefully controlled.) How do disclosure rules apply? (Regulators like the FTC require that it’s made clear when a post is an ad, even if the “person” posting isn’t real.) And there’s potential for backlash if a brand’s virtual character is not inclusive or reinforces unrealistic beauty standards – essentially a digital avatar could draw criticism for being too “perfect” or not representative of real consumers. Brands must tread carefully to ensure their virtual influencers don’t inadvertently court controversy.

In light of these challenges, it’s clear why many e-commerce brands are taking a wait-and-see approach. A World Federation of Advertisers study of multinational brands found most have no plans to work with virtual influencers in the next year, preferring to focus on proven strategies. The last thing a growing Amazon seller needs is to invest heavily in a flashy AI gimmick that doesn’t move the needle – or worse, alienates shoppers. For now, virtual influencers remain a polarizing idea: exciting and innovative to some, but a potential flop to others.

Virtual Influencers vs. Micro-Influencers: Authenticity or Innovation?

It’s helpful to compare virtual influencers with their polar opposite: micro-influencers (real human creators with modest followings). For many e-commerce brands, micro-influencers have been the go-to because they offer authentic word-of-mouth marketing on a smaller scale. Here’s how the two stack up:

• • Authenticity & Trust: Micro-influencers are beloved for their authenticity. They’re “real people” passionate about a niche – and it shows in their content. According to several studies, roughly 70% of consumers trust micro-influencers more than celebrity influencers. That trust comes from perceived relatability: a micro-influencer feels like a friend or knowledgeable community member, whereas a superstar (or a digital avatar) feels more like an ad. When a micro-influencer posts a genuine review or unboxing video, audiences know it’s based on a real experience. That kind of UGC-style content can be gold for brands – think of the authentic product photos, testimonials, and how-to demos that a micro-influencer might create, which can be repurposed on your site or Amazon product listing for social proof. Virtual influencers simply cannot replicate that lived experience; they can’t actually try the protein shake or wear the shoes, so everything they “recommend” stays in the realm of staged fiction.

     

  • Scale & Creative Control: This is where virtual influencers shine. Need 100 posts in a week? An AI avatar can pump out content as fast as your design team can animate it, never complaining about burnout. Micro-influencers, being human, have limits – and each has their own style that brands must adapt to. With a virtual influencer, brands have the creative reins fully in hand. However, managing dozens of micro-influencers via an influencer platform can achieve scale too, just with more coordination. Platforms like Stack Influence, for instance, help brands connect with a network of vetted micro-influencers to run campaigns at scale (while still keeping that human touch). So, if it’s reach and volume you want, you could either hire one CGI avatar or hundreds of real micro-influencers – both routes have logistical challenges, but of very different kinds.

     

  • Engagement Quality: Micro-influencer audiences tend to be small but highly engaged. It’s not unusual for a micro-influencer to see engagement rates far exceeding those of macro-influencers, because their followers are genuinely interested in a focused topic or community. This means their recommendations can drive strong conversion within that niche. A micro-influencer’s post about a skincare product might only reach 5,000 people, but if 500 of those viewers really trust her and go buy the serum, that’s a big win. Virtual influencers, on the other hand, might reach millions with a single post – but if much of that engagement is just curiosity or passive likes, the conversion to sales could be low. It’s quality vs. quantity. A balanced strategy for many brands is to use micro-influencers for targeted authenticity-driven campaigns (to generate reviews, UGC, and trust in specific communities), while potentially experimenting with a virtual influencer in broader brand awareness campaigns where creativity and reach are the goals.

     

  • Accessibility for Brands: Creating or hiring a top virtual influencer isn’t trivial. There are only so many established virtual stars (e.g. Lil Miquela, Lu do Magalu), and partnering with them could be costly – not to mention somewhat uncharted territory in contract negotiations. Alternatively, crafting your own virtual persona requires significant investment in tech and storytelling. In contrast, micro-influencers are abundant in every niche, and often eager to partner with brands they genuinely like. An Amazon seller in the kitchenware category, for instance, can easily find dozens of baking enthusiasts on Instagram or YouTube who’d love to test and promote a new gadget. Working with micro-influencers can be as simple as sending free product or offering a modest fee, and there are established platforms (like Stack Influence and others) to facilitate these collaborations. For most small to mid-sized e-commerce brands, tapping into the micro-influencer community is a far more accessible and proven play than venturing into virtual influencer land right now.

Bottom line: Micro-influencers bring authenticity, trust, and relatable storytelling through real-life content, which often translates into higher consumer trust and direct sales. Virtual influencers offer innovation, creative freedom, and potentially massive reach, which can generate buzz and brand awareness. It’s not necessarily an either/or choice – a savvy brand could use both in different ways. But if your goal is to build trust and gather user-generated content (reviews, testimonials, social buzz from real customers), micro-influencers are hard to beat. On the flip side, if you want to position your brand as ahead-of-the-curve or captivate a younger audience with something novel, a virtual influencer campaign might be worth a test.

Future Outlook: Fad or the Next Big Thing?

So, virtual influencers in 2025 – passing fad or game-changing trend? The truth lies somewhere in the middle. Right now, they’re part opportunity, part gimmick. The concept is still evolving, and many brands are wisely cautious. But looking forward, a few things hint that virtual influencers (or broader AI-generated content creators) could become a regular fixture:

• • Continued Tech Advancements: AI and animation tech will only get better. As virtual influencers become more realistic and perhaps interactive (imagine an AI avatar that can DM with fans autonomously), audiences may start to treat them less as curiosities and more as genuine entertainment personalities. This could erode some of the trust barriers over time – especially as younger, digitally-native generations gain purchasing power.

     

  • Growing Investment: Big players are investing in this space. Major marketing firms and even retailers are experimenting with virtual brand ambassadors. By 2026, some forecasts suggest CMOs will allocate a notable share of influencer budgets to virtual influencers, anticipating efficiencies and performance gains. The virtual influencer economy is already growing faster than the broader creator economy (one report noted it’s expanding five times faster than traditional media jobs). Where money flows, developments follow. We’re likely to see more sophisticated, diverse virtual characters emerging, possibly tailored to niche communities (just as human influencers are).

     

  • Consumer Acceptance – Slowly But Surely: While there is hesitation now, consumer sentiment can change. Remember when people were skeptical of virtual reality, or even online shopping? As virtual influencers become more commonplace, familiarity could breed acceptance. Notably, Gen Z and Gen Alpha seem quite comfortable with virtual celebrities (from VTubers on YouTube to holographic performers). If a critical mass of users start treating virtual influencers like any other content creator, brands will have the green light to incorporate them without the “gimmick” stigma. However, authenticity will remain key – brands will need to be transparent that these are virtual characters (no one likes to be deceived) and possibly find ways to give them “humanity” (e.g. meaningful narratives or causes they support) to forge real connections.

     

  • Hybrid Strategies: We may also see a blending of strategies – for instance, real influencers working alongside virtual ones, or influencers creating their own virtual alter-egos. This could create interesting crossovers (imagine a popular YouTuber teaming up with a CGI character for a skit – the human brings warmth, the AI brings flair). Such approaches might gradually make virtual influencers feel like a normal part of the influencer mix, rather than an outright replacement for humans.

For e-commerce brands and Amazon sellers, the prudent approach is to stay informed and maybe experiment in small doses. If you’re curious about virtual influencers, you could start by partnering with an existing one on a limited campaign to gauge reaction. Monitor engagement quality, traffic, and feedback closely. At the same time, doubling down on authentic influencer marketing – via micro-influencers or loyal customers – is a safe bet that continues to drive results. (After all, a happy customer posting about your product is the ultimate influencer, virtual or not!)

Conclusion to Virtual Influencers in 2025

Virtual Influencers in 2025 represent both an exciting opportunity and a cautionary tale. They embody the cutting-edge of influencer marketing, offering creative possibilities and always-on brand messaging that can drive buzz. Yet, they also exemplify the importance of authenticity – a reminder that audiences ultimately crave real connection and trust, which has long been the currency of successful marketing.

The verdict: Virtual influencers are not a magic bullet. They’re a tool – one that should be used strategically and authentically (yes, even a virtual persona can have an authentic brand-aligned voice). E-commerce marketers should weigh whether an AI avatar aligns with their brand values and customer base. It might be the next big thing for your target demographic, or it might fall flat as a gimmick if your audience values human touch and credibility more.

One thing is certain: the influencer marketing landscape is evolving quickly. Staying agile is key. Whether it’s leveraging a network of micro-influencers to generate trustworthy UGC, or cautiously dipping a toe into AI-driven avatars, brands that keep the focus on genuine engagement and customer trust will reap the rewards. Virtual or not, influencer marketing in 2025 and beyond will continue to be about storytelling, community, and influence – make sure your strategy, whatever form it takes, delivers on those fundamentals.

Ready to boost your brand’s presence? It could be through a hundred real voices on social media or a single virtual character turning heads – the key is to choose a path that truly connects with your customers and drives results. Don’t be afraid to innovate, but never lose sight of the authenticity that turns an audience into loyal customers.