In the previous blog posts, we focused on Influencer marketing on multiple platforms such as RED (Aka Xiaohongshu), Bilibili, Instagram, TikTok, and more. It is evident that Influencer marketing is a key component of successful marketing strategies nowadays. It combines effective marketing tactics like word of mouth marketing and social proof, which have proven effective since the beginning of time. Nowadays, most ads are just white noise, and influencers offer a more personable connection between the brand and the consumer.

Consumers are also sick of fake promises that brands “guarantee” in the ads. Say less. We were all once victims of fake advertisements that left us disappointed with promises that were never delivered.

With the prevalence of social media, we see a lot of celebrities and influencers endorsing and promoting different services and products, winning enormous amounts of engagements and conversions for brands and businesses. However, selecting the right influencer could be a risky business. Picking the wrong influencers not only sabotages your time and budget but could also trigger a PR crisis for your brand.

In the past 2 months, quite a few Chinese celebrities have been disgraced. Kris Wu, a Chinese Canadian pop star who was a top celebrity in China until months ago, was arrested on suspicion of rape in China. The luxury brands he was endorsing such as Porsche, Bulgari, and Louis Vuitton terminated all collaborations with him. A photo of Chinese actor Zhang Zhehan showing him posing for a photo at the Yasukuni Shrine also surfaced online. The shrine honors Japanese war veterans -- a politically sensitive location for the Chinese, and this incident led to more than 20 companies immediately severing ties with him. Another famous Chinese singer, Lucas Huang was accused of cheating on and , gaslighting his ex-girlfriends, where it was claimed that he took advantage of his fans romantically and financially. Brands that he endorses are quietly deleting his photos on social media.

It’s a double-edged sword. When your brand works with an influencer, all eyes are on them; but it’s precisely because all eyes are on them, you run the risk of their actions, however small, creating a potential big (negative) impact on your business. Don’t want to deal with these risks? There is a new and effective yet less risky trend emerging in China and it is the virtual KOL industry.

Virtual KOLs are artificial intelligence, they can be fully controlled in terms of their appearances, body figure, and also facial structures. They could appear in many places endorsing multiple brands at once, they never age, and most importantly, they would not cause negative attention due to their personal lives and political opinions. Of course, virtual KOLs mean their appearance and lifestyles are highly manufactured, but if control is what you are looking for, then this could be an optimal choice. Also in China, consumers want to integrate the rapid technological advances into their daily lives such as 5G, AI, VR, and AR. The virtual KOL industry has been booming, and iiMedia Research estimates that the industry’s growth from 2017 to 2020 had been 70% year-over-year. Now the virtual KOL industry reaches an estimated 390 million people in China and is worth around $35 billion.

Luo Tianyi is the first virtual idol in China, she is a Chinese Vocaloid created and launched by Shanghai Henian Technology Co. in 2012. She looks like a Japanese anime character with her blue hair and lolita manga costume. She is famous for her sweet and healing voice and she has more than 5 million fans on Weibo. Luo has appeared on mainstream platforms performing with different artists numerous times. She even performed with world-famous Chinese pianist, Lang Lang on stage. Luo also endorsed KFC by dancing and singing in a music video, making viewers crave food from KFC.

However, when it comes to AI virtual idols, Ling is the first-ever with the appearance of a Chinese woman. She is co-created by Chinese AI startup Shanghai Xmov Information Technology, and Beijing Cishi Culture Media Company. Although Ling is not real, she is indeed a moving art piece depicting classic femininity and elegance. Ling can carry modern and classic styles effortlessly, and this helps her secure endorsement opportunities with brands such as Tesla, Vogue, Nayuki, and more.

Can AI virtual KOLs replace real celebrities in the future? It is really hard to tell since AI virtual idols could be even more lifelike and realistic with the aggressive advance of technology.

Still, we think both sides have their special merits. AI Virtual KOLs are flawless, their traits are perfect, they can be fully controlled by their creators and they provide brands peace of mind since they are immune to scandals. Meanwhile, some audiences would prefer human celebrities as they are perceived to be more authentic and complex.

No matter how lively AI virtual KOLs are, they are not real humans, some audiences would have difficulty resonating and trusting endorsements by virtual idols. Although virtual KOLs provide more control, they could still be prone to glitches and technical issues because we have yet to eliminate the human error factor of those who create and maintain them.

The downfall of major celebrities in China, rapid advancement of technology, and people’s desire for the latest technology gives rise to the booming trend of virtual AI idols. Would you work with a virtual KOL to promote your brand or business? Is AI technology really healthy for human interaction and society? We shall see.

Could Virtual KOLs be a welcomed alternative to traditional Influencer marketing?