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The emergence of virtual influencers: a shift in the influencer marketing

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Article in Young Consumers Insight and Ideas for Responsible Marketers · April 2023
DOI: 10.1108/YC-05-2022-1529

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The emergence of virtual influencers: a
shift in the influencer marketing paradigm
Anand Jhawar, Prashant Kumar and Sanjeev Varshney

Abstract Anand Jhawar,

Purpose – This study aims to gain insights into the rise of virtual social media influencers and identify the Prashant Kumar and
significant theories governing virtual influencers’ (VIs) interaction with followers on social media Sanjeev Varshney are all
platforms. Studies on VI being scarce in marketing literature, the authors attempt to propose a theoretical based at the Department of
model to understand the acceptance of VIs by social media users (SMUs). Marketing, XLRI,
Design/methodology/approach – Using a structured literature review and a case study approach, a Jamshedpur, India.
conceptual model is developed and propositions are offered.
Findings – Parasocial interaction (PSI) between the SMU and VIs builds up source credibility, thereby
leading to the acceptance of VIs. Thus, the authors establish that PSI and source credibility theory
combine to explain the acceptance of VIs by SMUs. Furthermore, similarity with the VI is another added
dimension of source credibility, as suggested by this study. A comparative analysis of the growth of five
major VIs elucidates that the fashion, electronic, tourism and health-care industries can use them for
promotions and as influencers, especially for luxury products.
Research limitations/implications – VIs are a potent tool to achieve improved brand awareness and to
target young consumers (especially Gen Y and Gen Z – millennials).
Originality/value – The emergence of VIs being recent; little is comprehended about their interaction
with SMUs. Hence, it becomes important to delineate the foundations of VI–SMU interaction. Thus, this
study addresses the gap in identifying the theoretical background and proposes a conceptual model
elucidating VI acceptance by SMUs.
Keywords Virtual influencer, Influencer marketing, Social media, CGI, Millennials, Conceptual framework
Paper type Conceptual paper
Received 26 May 2022
Revised 3 August 2022
16 February 2023
1. Introduction Accepted 4 April 2023

Influencer marketing is a powerful branding and marketing tool to increase brand salience Funding: The authors declare
that no funds, grants or other
and attract social media users (SMUs; especially Gen Y and Gen Z – millennials) toward support were received during
brands. Influencer marketing that includes stimulating social media influencers (SMIs) to the preparation of this
manuscript.
post sponsored brand promotions has gained importance recently and is estimated to
Competing interests: The
generate a revenue of approximately $33bn by 2027 (Giuffredi-Kähr et al., 2022). However, authors have no relevant
human influencers (HIs) have faced new competition due to the rise of virtual influencers financial or non-financial
interests to disclose.
(VIs), mainly since 2016 (Zhou, 2020). Influencer marketing is a type of social media
Author contributions: All
marketing where individuals who have a dedicated and substantial following or fanbase authors contributed to the study
and are viewed as experts in their niche promote products and services (Kadekova and conception and design.
Material preparation, data
Holiencinova, 2018). The influencer’s inherent characteristics – expertise, popularity and collection and analysis were
reputation are vital in driving consumers’ brand awareness and purchasing decisions performed jointly by all authors.
All authors read and approved
(Lou and Yuan, 2019). Influencer marketing is mainly carried out on social media platforms; the final manuscript.
hence, the target segment of both VIs and HIs are millennials who are active on Instagram, Data availability: The data
YouTube, Facebook, Twitter, etc. (Sokolova and Kefi, 2020). generated during and/or
analyzed during the current
study are available from the
VI on social media is a relatively new phenomenon that has gained many followers since corresponding author on
2018 (Moustakas et al., 2020). VIs are computer-generated imagery (CGI) or artificial reasonable request.

DOI 10.1108/YC-05-2022-1529 © Emerald Publishing Limited, ISSN 1747-3616 j YOUNG CONSUMERS j

 intelligence (AI) based computer avatars with form and behavioral realism, trying to display
real expressions (Sands et al., 2022). These VIs have real human traits, characteristics and
personalities, owing to which they have accumulated millions of followers on social media
platforms like Instagram (Robinson, 2020). VIs are digital characters usually created by 3 D
animations or CGI and can be controlled by companies (Mrad et al., 2022) in the way Brud,
a California-based company in the USA, governs the day-to-day life and activities of Lil
Miquela – a 19-year-old American female with Spanish and Brazilian roots (Drenten and
Brooks, 2020). On the other hand, VIs may also be controlled by an individual in the same
way as Cameron-James Wilson initiated Shudu Gram (@shudu. gram) – a young African
virtual supermodel as a creative project (Robinson, 2020). Another aspect in which these
VIs differ from HIs and other VIs is the level of form realism. Some have more natural and
genuine appearances and engage in more human-like activities, like Lu of Magalu
(@magazineluiza), Lil Miquela (@lilmiquela), Shudu (@shudu. gram), Bermuda
(@bermudaisbae), Imma (@imma. gram), and Blawko (@blawko22). In contrast, others
are more digital and do not display human-like emotions and activities, like Kizuna AI
(@a.i.channel_official), Noonouri (@noonoouri) and Istrikesart (@Istrikesart). The common
thread is that most of these VIs are used by luxury apparel and cosmetics brands such as
Chanel, Burberry, Dior, Prada, Versace, Marc Jacobs, Louis Vuitton and Calvin-Klien for
promotions and, with time, as their presence on Instagram strengthens (refer Table 1). This
motivated us to study the rise and importance of VIs for marketers.
VIs seek to engage consumers on social media platforms through storytelling about their
personal lives, thereby trying to form an emotional bond with the followers (Ladhari et al.,
2020). The VI-audience interaction on social media follows the theory of parasocial interactions
(PSIs) in psychology (Fu et al., 2019), wherein the followers perceive the media personality (in
our case, VIs) as a bosom conversational companion (Horton and Wohl, 1956). As VIs are
characters created and controlled by humans, there are very little or no chances of errors on

Table 1 Summary of top 5 VIs on instagram

Name Lu of Magalu Lil Miquela Shudu Imma Noonoouri
Debut year 2009 2016 2017 2018 2018

Instagram @magazineluiza @lilmiquela @shudu.gram @imma.gram @noonoouri

account
Followers 5.9 million 3 million 2,39,700 3,60,000 4,01,000
Posts 2,427 1,204 106 655 1,397
Profile Brazilian origin, 24 19-year-old, Brazilian- World’s first digital Japanese origin, 19-year-old,
million followers on American, living in Los supermodel, African origin virtual model living in living in Paris,
social media, digital Angeles, a liberal Tokyo, interested in passion for art
specialist advocate Japanese film, and fashion,
culture and art vegan
Area of Unboxing videos, Fashion entrepreneur Virtual supermodel Virtual model Fashion
expertise product reviews and collaborating with endorsing luxury fashion partnering with luxury ambassador for
software tips, food, brands, political and brands fashion brands, luxury brands,
fashion, home, pets, social activist, singer street style environmentalist
sports and beauty and model photoshoots
Major Brand Adidas, RedBull, Calvin-Klien, Prada, Fenty Beauty by Rihanna, Amazon, IKEA, Dior, Dior, Marc
partnerships iBlogTV and Magalu Samsung, Chanel Soul Sky, Ellesse, Samsung, Puma, Nike, Calvin Jacobs,
Vogue Arabia, Tiffany’s, Klein, Magnum, and Versace,
Balmain, Oscar de la Renta, Burberry Siemens,
Hyundai Burberry
Major Virtualhumans, Vogue, V and Paper, Vogue, The New Yorker, Grazia, The Sun (UK) Vogue, Forbes,
Magazine Propmark, Infomoney Buzzfeed, The WWD, Refinery29, and Influencity deutschland.
appearances and Influencity Guardian, The Cut and Cosmopolitan, Hindustan de,L’Officiel
or interviews Refinery29 Times and Harper’s Bazaar
Source: Author’s own work

j YOUNG CONSUMERS j
their part, like the ones committed by HIs, owing to their arrogance, controversial comments or
misbehavior (Jin et al., 2019). Hence, millennials on Instagram and YouTube interact
extensively with VIs as they relate more with VIs on the grounds of similarity, attractiveness
(curiosity), expertness and trustworthiness (Zipporah and Mberia, 2014). Thus, following
Source Credibility Theory (SCT; Ohanian, 1990), factors such as trustworthiness,
attractiveness, expertise and similarity enhance the influence of VIs (Masuda et al., 2022;
Arsenyan and Mirowska, 2021). Despite increased recent media attention on the topic, there is
a lack of literature in the field owing to the recency of the prominence of VIs (Sands et al.,
2022). Thus, given the expansion in the number of users of social media sites and the
proliferation of VIs on social media networks, such as Instagram and Facebook, we believe
that the acceptance conditions of VIs by young SMUs deserve further attention (Arsenyan and
Mirowska, 2021). Moreover, this study addresses recent calls (Leung et al., 2022; Masuda
et al., 2022) to comprehend consumers’ perceptions of VIs and their interaction behavior.
Thus, to understand the factors leading to the acceptance of VIs by followers, we first review the
existing literature on VIs and HIs and draw out the similarities and dissimilarities between them.
Furthermore, we establish the theoretical background for the acceptance of VIs based on the PSI
Theory (Rubin et al., 1985) and SCT (Ohanian, 1990). This helps us build a relationship model
leading to VI acceptance, and then, we lay down the propositions for the posited relationships.

2. Literature review
The fame of VIs or virtual celebrities or models, started in Japan and the USA, is spreading
worldwide and in India with India’s first virtual model, Nila (Prasad, 2020). SMIs, YouTubers,
Bloggers or Video bloggers (Vloggers) used to be mainly human beings (HIs). However, in
2016, the trend of “virtual YouTuber” or “Vtuber” began, where virtual characters and
avatars, with form and behavioral realism, started occurring in YouTube videos and live
streaming (Miao et al., 2022; Zhou, 2020). These VIs are emerging as internet celebrities
disrupting definitions, meanings and values of the influencer marketing landscape, thereby
bringing more and rapid investments into the area (Sands et al., 2022). The most common
motives to follow virtual SMIs might be curiosity, intrigue, perceived similarity, human-like
connection and general life-related interests (Robinson, 2020). We would further synthesize
the literature on HI and VI to present their similarities and differences.

2.1 Similarities between HI and VI

The HIs and VIs are similar on the following four grounds, based on which we can argue
that VIs can be a potential substitute for HIs. First, both HIs and VIs have gained followers
and become famous on social media platforms by satisfying the users’ entertainment,
interaction and information needs. Thus, they have achieved celebrity and influencer status
due to social media activities rather than offline attractiveness and expertise (Casalo’ et al.,
2020). Second, both HI and VI serve as diversion agents for followers by sharing their
personal experiences, life events and various storylines, thereby providing the consumers
with an escape route from their routine life (Arsenyan and Mirowska, 2021). Third, in the
case of both HI and VI, the followers develop intimate associations as they interactively
engage in continuous parasocial communications with the influencers (Hwang and Zhang,
2018). Fourth, both HI and VI form effective brand partnerships and are used by brands for
advertisements and endorsement of products (Marwick, 2018; Djafarova and Rushworth,
2017). Brand managers leverage the large follower base of both influencers to increase
brand awareness and purchase intentions (Breves et al., 2019).

2.2 Differences between HI and VI

Following the context of our study, VIs may cause a shift in the influencer marketing
paradigm because of their differences and advantages over HIs. VIs can be differentiated

j YOUNG CONSUMERS j
 from HIs in several ways. First, VIs are AI-based, entirely controlled by their parent agency
and brands, and have no offline presence. Hence, there is no chance of them misbehaving
in real time. Whereas HIs can be provided the advertising content by the brands, their
offline behavior is not regulated by brand managers. Thus, if a HI’s image is tarnished due
to questionable comments or behavior, the negative effect also rolls down to the associated
brand (Tan and Liew, 2020). Second, there is no skepticism over the authenticity of Vis, as it
is evident to the consumers that the content they are posting is controlled and staged
(Sands et al., 2022). VIs lure followers via their human-like features, story-sharing and audio-
visual content despite being authentically fake. However, when HIs post sponsored content,
consumers become skeptical and develop a negative attitude toward the influencer and the
brand (Boerman et al., 2017). Third, VI is AI-based; unlike HI, they are always available for
dyadic communication with followers. This makes followers feel the higher social presence
and perceived similarity with VI compared to HI, increasing consumer engagement on
social media (Ladhari et al., 2020; Stapleton et al., 2017). Fourth, VIs immerse their followers
in an alternate reality, which mimics the real world, where they can speak out loud for social
causes like “Black Lives Matter, reproductive rights, and LGBT causes” (@Lilmiquela on
Instagram). On the other hand, HI might be wary of the consequences of comments and
supporting posts on such social issues. Fifth, in the wake of the physical communication
restrictions posited by the COVID-19 pandemic, VIs can provide an interesting opportunity.
They could freely create advertising content for brands, as they are unaffected by isolation,
uncertainty and anxiety. Also, their virtual nature allows them to be fictionally present
anywhere without bypassing any laws. For example, Lil Miquela went to a deli for an
advertisement during the pandemic (Arsenyan and Mirowska, 2021). On the other hand,
HIs might be bounded by their influence due to these restrictions and uncertain situations.
Table 2 presents the literature review, laying the foundation for the theoretical background
(Section 3) and relationship model (Figure 1).

3. Theoretical background
3.1 Parasocial interactions
PSI refer to the one-sided interaction by the audience or follower with a media person or
celebrity (Dibble et al., 2016). Audiences or followers develop parasocial relationships with
influencers based on empathy (or life stories), perceived similarity and physical attraction
(Rubin et al., 1985). Prior research state that individuals develop a feeling of friendship and
intimacy toward the influencers they like and follow based on the PSI on the media platform
(Labrecque, 2014; Perse and Rubin, 1989). Previous studies consider PSI one-sided and
nonreciprocal communication by media personae (Lueck, 2015; Tsiotsou, 2015). On the
other hand, recent literature on influencer marketing recognizes the role of audience
comments and a two-way interaction between influencers and followers (Reinikainen et al.,
2020; Munnukka et al., 2019; Jin, 2018). Lee and Watkins (2016) elucidate that the audience
develops trust and a sense of perceived similarity with the influencer due to increasing PSI.
Because of this more powerful feeling of connectedness and acceptance of the influencers
(in our case, VIs), consumers tend to consider their advice and suggestions (Usher, 2020).
Similar to HIs, VIs also endorses brands, discuss social issues (like #BlackLivesMatter by
@Lilmiquela on Instagram) and post about daily routine activities such as hanging out with
friends, going for a movie, working at the office, traveling, setbacks and personal issues
(Sands et al., 2022; Robinson, 2020). Social media platforms such as Instagram, Facebook
and YouTube, facilitate frequent user communication through image and video sharing,
chats and comments leading to the development of PSI (Farivar et al., 2021). Thus, social
media platforms strengthen young adolescents’ PSIs with virtual media personae (i.e.
characters and celebrities) and increase audiences’ feelings of connectedness to these
virtual personalities (Bond, 2016). According to Tian and Hoffner (2010), PSI impacts
consumers’ attitudes, behavior and identity. Consequently, we examine the development of

j YOUNG CONSUMERS j
 Table 2 Literature review on VIs
Author(s)
(Year of
Article title study) Journal Type of study Variables/ constructs Consequence Theory used Key findings

Celebrity 2.0: Lil Drenten and Feminist Media Conceptual NA NA NA 1. A virtual culture – specifically,
Miquela and the rise of a Brooks Studies influencer culture is necessary for
virtual star system (2020) the sustenance of a virtual star
2. Virtual celebrities lack agentic
spontaneity; hence, they are
infallible which makes them more
appealing for commercial means
3. Virtual stars, like Lil Miquela, can
be anywhere, at any time, with
anyone, giving brands risk-free
control, only limited by budget
Instafamous and social Jin et al. Marketing Empirical Celebrity type, social Trustworthiness, Social 1. Instagram personalities are
media influencer (2019) Intelligence & (survey) presence, self-discrepancy brand attitude presence effective in spreading messages
marketing Planning and envy theory, about new products, starting and
Meaning popularizing new trends and driving
transfer and up sales
source 2. Instagram influencers can be
credibility more effective in resonating with
theory audiences as they are perceived as
more similar to regular audiences,
have a higher likelihood of
interacting with fans and are easier
to associate or identify with then
traditional celebrities
Towards an ontology Robinson Australasian Conceptual Moral responsibility, NA Personal 1. The lines between real life and
and ethics of virtual (2020) Journal of motivation and transparency identity online existence are becoming
influencers Information theory and increasingly blurred as our
Systems agency engagement with platforms and
theory online spaces deepens and
becomes more ubiquitous
2. Two reasons why it may be
important to draw distinctions
between real and virtual influencers:
motivation and moral responsibility
(continued)

j YOUNG CONSUMERS j
 Table 2
Author(s)
(Year of
Article title study) Journal Type of study Variables/ constructs Consequence Theory used Key findings

j YOUNG CONSUMERS j
Following your “friend”: Bond (2016) Cyberpsychology, Empirical Exposure to favourite media Parasocial Performative 1. Results indicated a significant
social media and the Behavior, and (survey) relationship intimacy positive relationship between
strength of adolescents’ Social Networking strength exposure to media personae on
parasocial relationships Twitter and strength of PSRs.
with media personae 2. Computer-mediated
communication with media personae
may even have a greater impact on
perceived intimacy than more
traditional public appearances
Influencer marketing as Kadekova Communication Empirical Audience reach, affinity to Influence NA 1. The research findings confirm
a modern phenomenon and Today (survey) brand that there are significant differences
creating a new frontier Holienc
inova between the Gen Y and Gen Z
of virtual opportunities (2018) consumer generations in the area of
impact of influencers on consumer
behavior, which leads to different
marketing opportunities
2. The majority of influencers fit into
the following categories: celebrities,
industry experts and thought
leaders, bloggers or content
creators and micro-influencers
3. Influencers are more affordable
and inexpensive, and they are also
an opportunity for medium-sized
businesses to enrich their marketing
by means of communication that are
well known across the world
“Celebrity 2.0 and Jin (2018) Computers in Empirical Endorser Type, Social Parasocial Warranting 1. There is a significant mediating
beyond!” Effects of Human Behavior (experimental) identification with the celebrity interaction (PSI) theory and effect of social identification with the
Facebook profile with the celebrity source celebrity in explaining the
sources on social credibility relationship between the source
networking advertising model and PSI with the celebrity
2. Consumers’ attitude toward and
reaction to Facebook’s sponsored
advertisements depend on the
source of the celebrity brand
endorsement and the owner of the
Facebook profile page
3. Social identification mediates the
effects of the Facebook profile
source on parasocial interaction with
the celebrity
(continued)
 Table 2
Author(s)
(Year of
Article title study) Journal Type of study Variables/ constructs Consequence Theory used Key findings

Exploring the credibility Djafarova Computers in Qualitative NA NA Source 1. Nontraditional celebrities such as
of online celebrities’ and Human Behavior analysis credibility bloggers, YouTube personalities
Instagram profiles in Rushworth theory, Halo and “Instafamous” profiles are more
influencing the (2017) effect theory powerful, as participants regard
purchase decisions of them as more credible and can
young female users relate to these, rather than more
traditional, celebrities
2. Celebrities’ incentive for financial
gain from endorsements did not
seem to adversely affect
participants’ desire to purchase
Sense of community on Blight et al. Cyberpsychology, Empirical Expressive information Sense of Uses and 1. Social interaction and expressive
Twitter and Instagram: (2017) Behavior, and (survey) sharing, Companionship, community gratification information sharing motives were
exploring the roles of Social Networking Social interaction theory, directly positively associated with
motives and parasocial Parasocial SOC (sense of community) for users
relationships interaction of both sites
2. Parasocial relationships would
mediate the association between
motives for use and SOC on
Instagram but not on Twitter
YouTube vloggers’ Lee and Journal of Empirical Physical attractiveness, social Luxury brand Para-social 1. Luxury brand perceptions are
influence on consumer Watkins Business (survey) attractiveness and attitude perceptions and interaction significantly increased after
luxury brand (2016) Research homophily luxury (PSI) and watching vlog (video blogs) and
perceptions and brand purchase social increases were moderated by PSI
intentions intentions comparison with the vlogger
theory 2. Luxury brand perceptions and
purchase intentions for groups who
watch vlogs reviewing luxury
products are higher than groups
who do not watch vlog
3. The more attractive a media
personality is, the more likely the
viewer is to think they hold similar
beliefs leading to attitude homophily
Rethinking Usher (2020) Celebrity Studies Qualitative NA NA PSI Performances across social media
microcelebrity: key analysis create sophisticated “repressive
points in practice, ambiences” for audiences, which
performance and perpetuate consumerism as
purpose liberation through deliberately
fostering parasociality with
audiences and directives to emulate
(continued)

j YOUNG CONSUMERS j
j YOUNG CONSUMERS j
Table 2
Author(s)
(Year of
Article title study) Journal Type of study Variables/ constructs Consequence Theory used Key findings

Influencers on Casalo
 et al. Journal of Empirical Instagram account Consumer Opinion 1. Perceived originality and
Instagram: antecedents (2020) Business (survey) characteristics (perceived behavioral leadership uniqueness play a key role in
and consequences of Research originality, uniqueness, intentions and theory of developing opinion leadership on
opinion leadership quality, quantity), opinion (intention to planned Instagram
leadership perceived fit, interact, behavior 2. Perceived quality or quantity are
online interaction propensity recommend, not the key factors that lead a poster
(OIP) follow the to be perceived as an opinion
advice) leader in this social networking sites
(SNS)
3. Online interaction propensity
does not strengthen the influence of
opinion leadership as most people
may have routinized online
interaction in their daily lives
Marketing through De Veirman International Empirical Number of followers, product Brand attitude Theory of 1. Instagram influencers with high
Instagram influencers: et al. (2017) Journal of (experimental) divergence exclusivity numbers of followers are
impact of number of Advertising considered more likeable, mostly
followers and product because they are considered more
divergence on brand popular and may thus leverage the
attitude power of WOM at scale
3. Cooperating with influencers with
high numbers of followers might not
be the best marketing choice for
promoting divergent products, as
this lowers the brand’s perceived
uniqueness and consequently
brand attitudes
Notes: PSRs = Parasocial relationships; WOM = word-of-mouth
Source: Author’s own work
 Figure 1 VI acceptance model (model illustrating the relation between the VIs and social
media users)

Source Credibility
Perceived trustworthiness

Parasocial Perceived aracveness Acceptance

Interacon of VIs
P1 P3
(PSI) Perceived experse

Perceived similarity

P2

Source: Author’s own work

a parasocial relationship between followers and virtual SMIs to establish that the interaction
between the audience and VIs are governed by the psychology of PSIs (Blight et al., 2017).

3.2 Source credibility theory

Source credibility is the extent to which the target audience follows and believes the
information source to gain cognition about the product/service (Teng et al., 2014).
Influencers’ success depends on their opinion credibility and the amount of effort they
successfully put into personal brand building to attract and retain followers. As per SCT,
endorsers’ credibility is based on the source’s trustworthiness, expertise, attractiveness and
similarity (Munnukka et al., 2016; Ohanian, 1990). Source credibility is addressed here to
explain the research objective of how the rise of VIs has changed the sphere of influencer
marketing previously dominated by HIs or traditional celebrities. However, there are
contrasting views regarding trusting VIs as credible sources. But the present generation of
millennials seems to care less that VIs are not real and are content with the noncovert
promotions by these VIs (Robinson, 2020). Thus, VIs are increasingly considered more
credible sources compared to HIs.

4. Case studies
Case studies of two VIs (Lil Miquela and Shudu) are undertaken to delineate the approach
to their acceptance by SMUs adopted by them (refer Table 3). The proliferation and
influence of VIs suggested through case studies lay the foundation for the proposed model
for VI acceptance by SMUs.

4.1 Lil Miquela

The major attraction of followers toward VIs came with Lil Miquela’s introduction – a
startlingly humanoid Brazilian-American musician on Instagram in 2016. She debuted as a
charming 19-year-old singer, influencer and activist with her political opinions. She also
supports social causes such as the “Black Lives Matters” movement and the LGBT
community. A Los Angeles, California-based technology start-up Brud created the
influencer. After much speculation, followers finally got answers about her origin in 2018,
which raised the interest of many on Instagram and saw Lil Miquela rise to stardom with a

j YOUNG CONSUMERS j
 Table 3 Virtual influencer attributes
Attribute Lil Miquela Shudu

Social media presence Instagram, YouTube, Instagram, YouTube, Facebook,

Facebook YouTube
Influencer type Mega (>1 million followers) Macro (100 thousand–1 million followers)
Company name/ Brud/USA The Diigitals/England
country
Positioning 19-year-old robot living in Los World’s First Digital Supermodel
Angeles, singer, and activist
Campaigns Black Lives Matter, LGBT #blackisbeautiful, #melanin and
campaigns, back-to-school #blackgirlsrock, modelling campaigns
and holiday campaigns for digital supermodel agency
“TheDiigitals.com”
Purpose Brand-paid partnerships, Brand-paid partnerships, digital
digital promotions and social promotions and digital fashion modelling
cause activation
Source: Author’s own work

flurry of followers (more than 3 million Instagram followers, @lilmiquela). She also has more
than 3.6 million TikTok followers, 280 thousand YouTube subscribers and 1.2 million
Facebook followers. This laid the foundation for other VIs to jump into the influencer game.
Lil Miquela publishes pictures and videos of her life events (office, experiences, break-ups),
recording studios and celebrity hangouts on Instagram, displaying her high fashion sense.
Lil Miquela has promoted luxury brands such as Calvin Klien, Prada, Chanel, Samsung and
others (refer Table 1). In 2018, Time Magazine ranked Lil Miquela among the Top 25 most
influential people on the Internet, alongside former US President Donald Trump, Kanye
West, Rihanna and Kylie Jenner (TIME, 2018).

4.2 Shudu
Shudu (@shudu.gram on Instagram) – a young African virtual supermodel in her mid-to-late
20 s, was created by British photographer Cameron-James Wilson in 2017. On her debut,
Shudu instantly trended as one of the most beautiful models on Instagram and rose to fame
as “The World’s First Digital Supermodel.” She has more than 239 thousand followers on
Instagram, more than 129 thousand TikTok followers, above 41 thousand YouTube
subscribers and above 2.7 thousand Facebook followers. She also looks real and endorses
fashion and cosmetic products such as Fenty Beauty by Rihanna, Soul Sky, Ellesse, Pioneer
Futures, Tiffany’s, Samsung and Smart Car (refer Table 1). Shudu also signed a modeling
contract with digital supermodel agency TheDiigitals.com and joined the Balmain family.
She has been featured in a video experience at the Dubai Mall for Vogue Arabia. She has
also been featured in premier magazines and articles such as Vogue, The New Yorker and
Cosmopolitan. Her hologram was projected on the red carpet at the 2019 BAFTA Awards,
owing to her rise to fame amongst Instagram users. The headline at the BAFTA Awards
read, “For the first time ever, AI stylist Shudu brought BAFTA Film Awards red carpet
fashion to the masses via EE’s 5 G network and holographic technology.” Shudu is a
human-like, virtual supermodel who endorses luxury fashion brands.

5. Methodology and proposed conceptual model

Based on the above discussions on literature (Table 2), theoretical foundations (refer
Section 3), and case studies (refer Section 4), we develop the following conceptual model
(Figure 1) and propositions that illustrate that PSI and source credibility of VIs lead to their
acceptance by followers. The relationships between the elements of this model, namely PSI
with VIs, source credibility and VI acceptance, are discussed below.

j YOUNG CONSUMERS j
5.1 Parasocial interaction and source credibility
As the participation of an SMU with the VIs content increases, the consumer gets more
engulfed with the influencer. Owing to this higher self-investment, the follower forms an
emotional connection with the VI and engages in a trusting, long-term parasocial
relationship (Colliander and Dahle n, 2011; Horton and Wohl, 1956). Prior studies have
evidenced that with increasing PSI, the credibility (perceived trustworthiness, perceived
attractiveness, perceived expertise and perceived similarity) of influencers increases
(Reinikainen et al., 2020; Munnukka et al., 2019; Djafarova and Rushworth, 2017). Hence,
PSI with VI is anticipated as an antecedent to source credibility. With increasing PSI, the
consumers also form a parasocial relationship (long-term association) with the VIs (Dibble
et al., 2016), which gives VIs the status of the credible source and opinion leaders. Thus,
they become increasingly influential in promoting brands (Lou and Yuan, 2019). Based on
these arguments, we propose that:
P1. PSI between social media users and VIs has a positive effect on the source credibility
of VIs.

5.2 Parasocial interaction and VI acceptance

SMUs form interpersonal bonds and a sense of liking for the VIs over short- and long term
through continuous involvement (content viewing) (Reinikainen et al., 2020). PSI keeps the
consumer engaged with the social media content (posts, videos, photos, etc.) posted by
n, 2011). The
VIs, thereby forming a parasocial relationship with them (Colliander and Dahle
level of acceptance of the VI can be gauged from the number of followers and the number
of posts on their social media accounts (see Table 1). The more the number of followers, the
more the PSI, which further enhances their acceptance on social media. Hence, we
propose that:
P2. The increase in PSI between social media users and VIs positively affects their
acceptance.

5.3 Source credibility and VI acceptance

With greater PSI and higher source credibility of the VI, the audience will tend to be highly
attracted to the VI and perceive them to be an expert and trustworthy source of information
(Reinikainen et al., 2020). This perceived credibility of the VI will percolate on to higher
interactivity of consumers with them (Munnukka et al., 2019). Thus, following the SCT
(Munnukka et al., 2016; Ohanian, 1990), we submit that higher credibility would lead to the
acceptance of VIs by SMUs (Hu et al., 2020). Hence, the VIs can effectively influence the
follower’s purchase intentions and overall brand equity of associated brands (Sokolova and
Kefi, 2020). Thus, we propose that:
P3. Source credibility of VIs positively affects their acceptance by social media users.

6. Discussion and conclusion

This study provides new insights into the next big thing in influencer marketing, i.e. VIs. In
addition, it informs researchers and marketers about the primary theories of social
psychology and credibility, which can form the base for consumer–virtual influencer
interaction on social media. The above discussion also leads us to a better understanding
of virtual digital influencers and the most prominent VIs, which marketers and organizations
can leverage to increase brand salience and brand equity, especially in the case of luxury
products/services brands.
The research on VIs in influencer marketing is in the nascent stage. Hence, little is known
about VIs’ interaction with SMUs and their acceptance. Thus, answering the research call

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 by several recent studies (for example, Leung et al., 2022; Masuda et al., 2022), this study
attempts to conceptually illuminate that PSI with VIs build their credibility, thereby leading to
their acceptance by SMUs.
The suggested VI acceptance model can serve as the initial foundation for brand managers
to effectively promote their brand on social media platforms. As competition between
traditional and social media intensifies, marketers face the challenges of molding their
advertising strategies according to the changed consumer expectations. Partnering with
promotion agents (such as influencers and bloggers) based on the attributes that meet
consumers’ priorities can help establish a better connection with the consumers. Thus, the
proposed conceptual model elucidates that if the existing promotion strategies (i.e.
promotion by HIs) become lesser accepted due to questions of authenticity and
genuineness, brands could move to the next level (i.e. VIs who are free from human errors)
of communication.
The near-looming possibility that human SMIs might soon be replaced by their virtual/digital
counterparts like Lil Miquela and Shudu, makes it even more interesting to study the
emergence of VIs (Deng and Jiang, 2023). The contemporary audience on digital media
(especially the Gen Z) is immersed in virtual consumption, creative production and intense
involvement with virtual or digital technologies, thereby providing a push to virtual
innovations in marketing (Lam, 2016). Therefore, this article presents that millennial is the
leading consumer segment attracted to VIs (Haenlein et al., 2020).
Today’s media consumers are unfazed by traditional mass media advertisements. Hence,
brands must develop out-of-the-box promotional strategies or partnerships to attract the
target audiences’ attention. VIs interact with SMUs via content sharing. The increasing
popularity of VIs among young consumers on social media shows that users hardly care
about their commercial and mere virtual existence (Jerslev, 2016). Due to the success of
VIs, brands are building their VIs to influence the target audience on social media platforms
(Sands et al., 2022; Thomas and Fowler, 2021). A higher amount of dyadic, reciprocal PSI
with SMUs gives VIs an edge over HIs and celebrities.
Furthermore, VIs share their daily activities with SMUs, which helps build emotional
connections and credibility. With the acceptance of VIs by followers across social media
platforms (especially Instagram) (Djafarova and Rushworth, 2017), their acceptance as a
credible source increase, leading to extended interactions with existing and new followers/
social media consumers (Deng & Jiang, 2023). However, despite gaining prominence and
popularity on social media, there is also a point of caution for marketers. VIs could also be
perceived as less trustworthy, as followers may consider their existence purely commercial
and authentically fake (Riedl et al., 2014). Hence, managers are suggested to establish
high PSIs between VIs and SMUs.

6.1 Theoretical contributions

Several theoretical contributions of our study ascertain the evident shift in influencer
marketing and contribute to the theory on VIs. First, on account of the ubiquitous
proliferation of social media networks across the globe, our study proposes a relationship
model between SMUs and VIs based on their social presence, parasocial connectedness
and perceived credibility. Furthermore, this study explains that VIs can eclipse the bounds
of practical and ethical restrictions faced by HIs, such as limited presence, less brand-
control over HI responses and time-bound interaction with SMUs, owing to the
anthropomorphic nature and higher amount of control by developing agencies. Hence, this
study contributes to the extant influencer marketing literature by illuminating a paradigm
shift such that VIs can potentially replace HIs for brand promotions and SMU interactions.
Second, the main theories which explain the relationship between VIs and social media
followers are PSI (Rubin et al., 1985) and SCT (Ohanian, 1990). This paper contributes to

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the literature by being one of the first few studies to identify that PSI and source credibility
constitute the phenomenon of acceptance of VIs. Our study presents the relationship model
and researchable propositions to complement and extend the theories and constructs in the
context of VIs. Based on PSI, communication with virtual social media personae may
significantly impact followers due to higher perceived intimacy than traditional public
appearances by HIs. The audience also gets attracted to the VIs due to their attractive
social media profiles, build and perceived similarity, which makes them consider VIs
credible and expert sources. Thus, the conceptual model confirms that prominent
advertising theories such as PSI and SCT apply in the context of promotions by VIs, thereby
advancing our knowledge in AI-based influencer marketing.
Third, the perceived uniqueness, perceived fit and perceived similarity of the VIs with the
SMUs’ personalities play a crucial role in strengthening the intention to accept and follow them.
Hence, we challenge the traditionally accepted source credibility model (in extant advertising
literature and the case of HIs), which consists of three dimensions (trustworthiness,
attractiveness and expertise) (Breves et al., 2019; Ohanian, 1990). We submit that SMUs are
intrigued by the daily life posts of VIs (i.e. VIs’ going to restaurants, malls, holidays, flaunting a
common nail polish or T-shirt). SMUs are fascinated and enticed by the thought that they can
also do or wear things similar to VIs. Hence, there is a sense of perceived similarity, which
leads to the acceptance of VIs. Therefore, our study challenges the established source
credibility model proposed by Ohanian (1990) and supports the inclusion of an additional
dimension (i.e. perceived similarity), as suggested by Munnukka et al. (2016), in the context of
influencer marketing. Thus, this study proposes the expansion of the source credibility scale
from three dimensions (i.e. trustworthiness, attractiveness and expertise) to four dimensions
(i.e. trustworthiness, attractiveness, expertise and similarity).
Fourth, we have identified that the PSI between SMUs and VIs results from the human-like
connection, i.e. display of accessibility (24  7 online presence), online intimacy, human-like
form and behavioral realism. These factors contribute to positive interpersonal and emotional
connections between SMUs and VIs based on their social presence. Traditionally, human-
computer interaction and social media literature has studied consumers’ behavioral
intentions to interact with online or AI-based agents based on technology adoption theories
(Moriuchi, 2019), focusing on their perceived usefulness and ease of use. However, this
study addresses the limitations of using only a single-sighted technology adoption approach
to explain SMU-VI interaction through PSI and SCT theories. This study suggests that VI
acceptance depends on the willingness to adopt technology and the relationships and
credibility built between the SMUs and the virtual (or “human-like”) agents.
Fifth, analyzing the fame of these VIs and their rise to virtual celebrity status on Instagram, it
is clear that most of the followers are indifferent to the fact that VIs are not real humans but
AI-run robots. To sum it up, our study opens up new avenues of interdisciplinary research in
the human–CGI (or human–computer) interaction by proposing a relationship based on the
theory of PSI psychology of technology users.

6.2 Managerial implications

This study aims to draw helpful insights for brand managers and organizations into virtual
SMIs. First, brand managers are provided with the understanding that VIs can be as
effective as HIs. VIs can foster effective brand partnerships and help garner faster brand
awareness, recognition, association and positive emotions in the target audience,
especially millennials on social media. This might work similarly to promotions via HIs but
can be more effective due to the curiosity among followers and enhanced interaction with
the audience. Hence, brands can complement their existing influencer marketing strategies
with VIs as promotion agents. Second, several high-end luxury brands such as Chanel,
Dior, Clavin-Klien, Burberry, Puma, Marc Jacobs, Versace, Samsung, Fenty Beauty and
Adidas are working with VIs and using them in their campaigns. Hence, it is imperative that

j YOUNG CONSUMERS j
 VIs with a high following on social media (mainly Instagram) can be a potent influencing
medium for brand managers, particularly in the fashion and accessories, clothing,
electronics and hospitality industries (refer Table 1). Third, brand managers can leverage
the vast number of followers to generate likeability for their brands, as the popularity of VIs
leads to ascribed opinion leadership. Thus, Instagram can be an excellent medium to reach
a mass target audience and capture mass attention. Fourth, VIs also provide brands with
greater control over the influencer’s behavior and content. Hence, they reduce the risk of
“human errors” in their brand campaigns or the threat of offending consumers’ sentiments
by doing or saying something wrong or inappropriate, as in the case of HIs or celebrities.
Fifth, owing to their 24  7 online presence, VIs can have higher WOM capabilities. This can
be understood by the World Health Organization’s (WHO) decision to engage VI Knox Frost
for the COVID-19 campaign (Chen, 2020). Hence, owing to their ubiquitous presence, VIs
can be potent for similar social and mass awareness campaigns. Lastly, consumers who
seek a high level of uniqueness (such as Gen Z, hipsters or other unique subcultures) might
be attracted to VIs. Thus, VI–consumer engagement can work well for brands creating
products, services, or experiences for people who strive to be unique.

6.3 Limitations and future research opportunities

This study presents a picture of the rise of VIs and their influence on social media platforms
and has certain limitations. First, the extant literature on VIs is minimal, so several academic
theses, media articles and blogs have also been considered while conducting the literature
review and gathering insights. Future research could make a more structured attempt at
considering only published literature pieces to impose greater validity and reliability.
Second, a further in-depth study can be done to identify the role of other antecedents or
factors (such as perceived brand congruence and perceived similarity) that attract the
audience to VIs. Third, this study presents a theoretical account of the rise of VIs; further
research could include data collection and empirical analysis of the factors governing the
relationship between VIs and followers. Fourth, future studies could present a comparative
analysis of the presence of VIs on multiple social media platforms such as YouTube,
Facebook, Twitter and TikTok. Fifth, the research could focus on a comparative analysis of
VIs with regard to HIs on the parameters of PSI and source credibility. Sixth, this study is
limited mainly to identifying the utility of VIs in promoting luxury fashion brands. It would be
helpful for marketers if further studies could empirically test whether VIs can effectively
promote promotions in other industries such as hospitality, food and beverages, medicine,
tourism, entertainment and health care. In addition, future research could qualitatively or
quantitatively gauge the effect of the uncanny valley, which is prominent in human-computer
interaction when the human-like resemblance increases, on consumers’ behavioral reactions
in the context of VIs. Apart from these, there can be a plethora of research opportunities in
this nascent domain as we seek to illuminate a marginally explored chapter in influencer
marketing and branding.

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About the authors

Anand Jhawar is an FPM Scholar at XLRI, Jamshedpur, India. He holds a master’s degree
(Management) from Indian Institute of Management Raipur, India. He has corporate work
experience in Godrej & Boyce Mfg. Co. Ltd. and Birla Gold Cement (Aditya Birla Group). He
has presented paper in International Marketing Conference (ANZMAC, 2022). His research
interests are in the domain of green marketing, anticonsumption, brand management and
influencer marketing. Anand Jhawar is the corresponding author and can be contacted at:
fb20003@astra.xlri.ac.in

Prashant Kumar is Assistant Professor (Marketing) at XLRI Jamshedpur, India. His work has
been published in a number of peer-reviewed journals, including European Journal of
Marketing, Industrial Marketing Management, Journal of Retailing and Consumer Services,
Australasian Marketing Journal, Marketing Intelligence and Planning and International
Journal of Retail and Distribution Management. He has presented papers in international
conferences in Asia and Europe. He teaches courses such as Industry 4.0, Digital
Marketing, Marketing Research, Business Marketing, Sales and Distribution Management,
Business Forecasting and Environmental Management in business schools in India, Mexico
and Thailand and UAE at graduate, postgraduate and executive levels.

Sanjeev Varshney is currently Professor (Marketing) at XLRI, Jamshedpur, India. A paper

based on his thesis was awarded the best paper at COSMAR 2006 (a consortium of
management researchers at IISC, Bangalore). He has international publications to his credit
in peer-review journals, including Journal of Consumer Marketing, Journal of Retailing &
Consumer Services, Asia Pacific Journal of Marketing and Logistic, Journal of Business &
Industrial Marketing and Journal of Nonprofit & Public Sector Marketing. He has written
several management cases and is a lead researcher in two Government (GoI)-sponsored
research projects. He teaches courses such as Consumer BehavioPr, Marketing Research,
Marketing Management, Sales and Distribution Management.

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