Does Your Brand Need a Virtual Avatar?

Does Your Brand Need a Virtual Avatar?

The internet landscape is in the midst of a fascinating evolution as digital personas in the form of virtual avatars and influencers rapidly transform how people interact online. Virtual influencers are no longer niche curiosities; they are mainstream content creators, amassing millions of followers and securing partnerships with global brands.

This surge in digital personalities poses a critical question for marketers: Should brands follow suit and create their own avatars to forge distinctive identities that resonate with modern consumers, or is this merely a flashy distraction? In exploring this, I’ll weigh potential benefits against the drawbacks to help you decide if it’s right for your brand. To paraphrase Dr. Ian Malcolm in Jurassic Park, it’s not about whether we could do something, but whether we should do it.

What are Virtual Avatars and Influencers?

Virtual avatars and influencers are fictional characters animated through computer-generated imagery (CGI) and powered by artificial intelligence, enabling them to interact naturally with users. Unlike traditional chatbots or AI-generated stills, these characters possess an “AI brain” trained on brand guidelines, personality traits, and backstories, all integrated into a 3D model that can range from photorealistic to stylized or even animalistic in form. 

They hold conversations, respond to comments, and even participate in live-streaming events, blurring the line between human and machine. This combination of CGI aesthetics and natural language processing sets them apart from earlier, more static virtual brand characters.

The Growing Presence in Brand Marketing

Over the past few years, virtual influencers have moved from experimental side projects to central roles in digital marketing strategies. Agencies report a sharp increase in demand for CGI avatars in social media content, promotional ads, and even virtual reality activations. 

For example, virtual influencer Lil Miquela has collaborated with Dior, Calvin Klein, and BMW, all of them keen to tap into her millions-strong following. Similarly, Imma, the pink-haired virtual model, has fronted campaigns for IKEA and Adidas, combining her stylized appearance with interactive product demos. 

Some Brands are even creating their own branded virtual avatars. KFC introduced a digital Colonel Sanders for their social feeds, while Maybelline rolled out May, a CGI persona to showcase beauty tutorials. Rumours suggest that TikTok has even developed an in-app AI feature to automatically spawn virtual influencers.

Arguments FOR Brands Using Virtual Avatars

One of the strongest arguments in favour of branded virtual avatars is the cost and time savings. While the upfront investment in CGI modelling and AI training can be substantial, once created, avatars eliminate recurring fees associated with human ambassadors, travel, and talent management. They’re available 24/7, immune to illness or scheduling conflicts, and enable rapid content iteration without reshoots.

You also gain immense control and consistency. Unlike human influencers who could deviate from the messaging you agreed to or become embroiled in scandals, virtual avatars strictly adhere to brand guidelines. This ensures a uniform voice, tone, and creative direction across every post or video, protecting brand safety and reinforcing the brand's identity.

When done correctly, virtual avatars can enhance engagement and personalization. AI-powered avatars can learn from user interactions to deliver tailored responses, recommendations, and storytelling. This dynamic personalization can foster deeper emotional connections by giving the brand a distinct “face” and “voice” that remembers past conversations and preferences, potentially driving a higher ROI on content campaigns.

Ultimately, virtual avatars can serve as interactive touchpoints, functioning as virtual shopping assistants, event hosts in metaverse environments, or multilingual ambassadors with in-built translation. They can seamlessly migrate from Instagram feeds to VR showrooms to real-world billboard signage, extending the brand experience across channels.

This also means they can be used effectively for data capture. Virtual avatars can be more organic than traditional surveys or forms, as you can embed subtle prompts into conversations. This allows them to harvest first-party data like user preferences, interests, and behaviour in a less intrusive manner, providing valuable marketing insights without disrupting user experiences.

Source: Shutterstock

 

Arguments AGAINST Brands Using Virtual Avatars 

Despite these advantages, there are significant issues that can’t be ignored before we all jump on the virtual avatar bandwagon. First and foremost: authenticity and trust. Studies show that consumers often perceive endorsements from virtual avatars as less genuine, precisely because they lack actual experience with the product. 

The uncanny valley also looms large: avatars that appear almost human but not quite right can provoke discomfort, undermining credibility and engagement. Research grounded in uncanny-valley theory indicates that overly realistic virtual influencers may deter rather than attract users when their anthropomorphism falls into that unsettling grey area.

It’s also worth bearing in mind that the upfront costs aren’t trivial. Developing a mid-level custom AI avatar can cost anywhere from $100,000 to $250,000+, depending on complexity, with recurring expenses for AI training updates, content production, and community management.

And while there’s a reduced risk of employing a human influencer who might do something that brings your brand into disrepute, the fact is that you won’t have total control over everything an avatar says and does. AI “hallucinations” aren’t just ChatGPT saying the wrong thing; they can happen with AI avatars as well. A hacked or poorly monitored AI influencer could spew misleading claims or offensive language, jeopardizing brand integrity.

Ethical considerations can’t be overlooked. Virtual influencers often embody narrow beauty ideals, potentially perpetuating unrealistic standards. There are concerns around the displacement of human talent and the manipulation of parasocial relationships, especially if brands aren’t disclosing whether an avatar is virtual or not. Additionally, avatars that collect user data raise concerns about privacy and bias in AI that demand rigorous oversight.

Finally, the legal and regulatory landscape remains murky. While the FTC’s Endorsement Guides cover influencers broadly, they don’t yet address AI-driven personalities specifically, leaving brands to interpret disclosure requirements and liability in a grey zone.

Consumer Perceptions and the Role of Authenticity

Consumer response to virtual influencers is nuanced. Many Gen Z users demonstrate surprising trust in AI personalities, so long as the avatar’s persona feels relatable and transparent about its nature. Yet, when push comes to shove, audiences still look to human recommendations as the gold standard, valuing the perceived authenticity and lived experience of real people.

For success, virtual influencers must clearly align their image and backstory with the products they promote; a disconnect between persona and endorsement undermines believability. For example, a hyper-stylized beauty avatar endorsing heavy machinery would ring hollow, whereas a fashion-oriented avatar can naturally inhabit couture campaigns.

Clear transparency regarding the marking of content as CGI or AI-driven is critical. Without proper disclosure, consumers may feel deceived, eroding trust not just in the avatar but in the brand itself.

Navigating the Virtual Landscape

So, how can brands safely explore this frontier? First, many are finding success by collaborating with existing non-branded avatars rather than building their own. These partnerships leverage established followings and creative freedom, often yielding higher engagement than in-house creations.

If you do decide to go all in and build your own branded virtual avatar, you’ll need robust guardrails and monitoring systems to prevent off-brand content and AI drift. This includes continuous AI training on updated brand guidelines and real-time moderation to catch any emergent “hallucinations”.

Balancing realism without tipping into the uncanny valley requires careful investment in motion-capture technology and stylized design choices that emphasize “character” over photorealism. Hybrid campaigns that pair human and virtual influencers can also soften the transition and lend credibility.

Ultimately, virtual avatars should be deployed with strategic intent; their role must extend beyond novelty to deliver genuine utility for your brand and audience, such as personalized shopping assistance, immersive storytelling, or community building. Short-term gimmicks rarely sustain audience interest. Lasting value comes from integrating avatars into a holistic brand experience.


Source: Shutterstock

 

Conclusion

Virtual avatars can be a powerful tool for brands and marketers, but they may not be the right fit for all brands and marketers. Just because you can have a virtual avatar, doesn’t mean that you should. 

When you get right down to it, the question is: Does having a virtual avatar provide value to your audience? If yes, then it’s worth looking into. If no, then it’s little more than an expensive gimmick.

 

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