Enterprise AI Analysis
The Virtualisation of the Influencer Economy
This in-depth analysis of "The virtualisation of the influencer economy: Development of a conceptual model" by Leggett, Lammi, and Mykkänen (2026) reveals how the integration of virtual influencers is fundamentally reshaping digital marketing. We explore the evolving landscape of actors, financial flows, labor dynamics, and control mechanisms, offering critical insights for businesses navigating this disruptive technology.
Executive Impact & Strategic Summary
The advent of virtual influencers marks a significant shift, creating both opportunities and challenges across the influencer economy. This summary distills the core problem, our proposed solution, key findings, crucial metrics, and actionable strategic recommendations.
Problem Identification
The rapid rise and integration of virtual influencers into social media have created a critical knowledge gap. Existing literature lacks a comprehensive understanding of the overall influencer economy's structure, including all human and virtual actors, the intricate shifts in labor dynamics, financial flows, and the evolving control mechanisms. This oversight hinders strategic decision-making for brands and platforms.
Our AI-Driven Solution
Our analysis leverages an AI-driven approach to synthesize academic and industry literature, creating a robust conceptual framework that bridges the research on human and virtual influencers. We provide a holistic view of the reconfigured influencer economy, mapping new actors, financial pathways, labor requirements, and control dynamics to offer clear, actionable intelligence.
Key Findings
- Intermediaries (agents, incubators) are increasingly vital in navigating the complex influencer ecosystem.
- Brands can reclaim significant control over messaging and brand narrative through the strategic use of virtual influencers.
- Human social media influencers face mounting pressure from virtual counterparts, leading to potential loss of work opportunities and increased demands for unpaid aspirational labor.
- Virtual influencers offer brands unparalleled creative flexibility, consistency, and reduced risk of scandal, albeit with high initial development costs.
- The digital attention economy is undergoing an institutionalization, shifting power dynamics towards platforms and brand-controlled narratives.
Key Metrics
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Influencer Economy Value (2024)
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Virtual Influencer Market Value (2023)
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VI Engagement Multiplier (vs Human)
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Creator Economy Projected Value (2027)
Strategic Recommendations
- For Brands: Strategically integrate virtual influencers to enhance brand control, consistency, and risk mitigation, while carefully managing authenticity perceptions and considering hybrid human-VI campaigns.
- For Agencies & Trainers: Adapt business models to specialize in virtual influencer creation and management, expanding skillsets in CGI, AI, and narrative development, or focusing on facilitating human-VI collaborations.
- For Social Media Platforms & Regulators: Develop transparent guidelines for virtual influencer disclosures, address the institutionalization of the digital attention economy, and ensure fair compensation models for all creators to maintain ecosystem health.
- For Human Influencers: Emphasize unique human attributes like empathy and spontaneity, explore strategic collaborations with virtual entities, and diversify income streams beyond traditional endorsements to build resilience.
Deep Analysis & Enterprise Applications
Select a topic to dive deeper, then explore the specific findings from the research, rebuilt as interactive, enterprise-focused modules.
Overview & Market Structure
Financial Dynamics
Labor & Control
This tab explores the foundational elements of the influencer economy, detailing the diverse actors involved and how their relationships define the market structure. It highlights the traditional roles of human influencers and brands, and how new intermediaries facilitate their interactions. The introduction of virtual influencers significantly alters this landscape, creating new pathways for brand control and content creation, which will be further elaborated in the modules below.
Here, we delve into the complex financial flows that underpin the influencer economy. We examine how revenue is generated and distributed among brands, influencers, platforms, and intermediaries. The analysis covers various compensation models—from commissions and advertorials to direct sales and platform royalties—and how the rise of virtual influencers can centralize these financial streams, offering brands greater economic leverage and efficiency.
This section analyzes the evolving labor landscape and the critical shifts in control within the influencer economy. We explore the phenomenon of aspirational and unpaid labor by human influencers and audiences, the impact of algorithms on visibility, and the new work opportunities created by virtual influencer development teams. Furthermore, we investigate how brands are leveraging virtual influencers to reclaim control over narratives and mitigate risks, profoundly affecting the autonomy of human creators and the overall power balance.
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Virtual Influencer Market Value (2023)
The virtual influencer market is rapidly expanding, reaching an estimated $4.58 billion in 2023, reflecting significant brand investment and consumer engagement. This growth is driven by the perceived benefits of enhanced control, creative flexibility, and often higher engagement rates compared to human counterparts.
Key Actors in the Virtualized Influencer Economy
Brands
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Virtual Influencer Agents/Agencies
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Virtual Influencers
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Social Media Platforms
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Consumers
The introduction of virtual influencers has restructured the core relationships within the economy. Brands can directly manage virtual influencers or outsource to specialized agencies. These virtual entities interact with consumers on social media platforms, creating a more controlled and predictable flow of content and commerce.
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Brands face a strategic choice between human and virtual influencers, each presenting distinct advantages. Virtual influencers offer unparalleled control and consistency, mitigating risks associated with human behavior, while human influencers excel in perceived authenticity and organic connection. The decision impacts financial outlay, brand messaging, and internal labor allocation.
Lu of Magalu: A Brand-Owned Virtual Influencer Success Story
Lu of Magalu exemplifies the strategic power of a brand-owned virtual influencer. Identifying as Brazilian and globally recognized, Lu functions as an online salesperson, tech expert, company stakeholder, spokesperson, and endorser. Her TikTok account was the fastest-growing in the world, gaining over 1 million followers in its first month. This comprehensive role demonstrates how a virtual influencer can integrate deeply into a brand's operations, driving sales, enhancing brand image, and offering a high degree of narrative control.
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Followers (2022)
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TikTok 1st Month
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Sales Surge (2021)
Lu of Magalu demonstrates the multifaceted utility of a brand-owned virtual influencer, from direct sales to brand ambassadorship, showcasing a model of deep integration and high brand control. This approach has led to significant market impact and sales growth for Magalu.
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Millennials Trust Online Reviews
A significant 93% of millennials report trusting and relying on online reviews, and 50% take action after positive reviews. This highlights the institutionalization of the digital attention economy, where consumer trust in online content is paramount. The shift towards virtual influencers implies a re-centralization of control, potentially leading to a stronger brand voice and decreased citizen voice on social media, influencing purchasing decisions more directly.
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Creator Economy Projected Value (2027)
The broader creator economy, of which influencer marketing is a key driver, is projected to surge from $250 billion to an estimated $480 billion by 2027. This rapid expansion underscores the growing economic significance of digital content creation and endorsements, making the evolution of the influencer landscape, including virtual influencers, a critical area for strategic investment and adaptation for enterprises.
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Implementation Roadmap
A strategic phased approach to integrating AI into your enterprise.
Phase 1: Discovery & Strategy Alignment (Weeks 1-4)
Initial consultations and workshops to understand current influencer marketing strategies, identify pain points, and assess the feasibility of virtual influencer integration. Define clear objectives, KPIs, and scope for a pilot program.
Phase 2: Virtual Influencer Development (Weeks 5-12)
Design and creation of virtual influencer personas, including aesthetic, narrative, and personality. This involves CGI specialists, writers, and AI experts. Develop initial content, brand guidelines, and platform integration plans.
Phase 3: Pilot Deployment & Optimization (Weeks 13-20)
Launch the virtual influencer in a controlled pilot campaign. Monitor performance against defined KPIs, gather audience feedback, and refine AI interaction models. Optimize content strategies and platform engagement for maximum impact.
Phase 4: Scaling & Full Integration (Weeks 21-36)
Expand virtual influencer campaigns across relevant social media platforms and integrate into broader marketing efforts. Train internal teams for ongoing management and content creation. Explore advanced AI features for personalized audience interactions and data analytics.
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