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False idols: Unpacking the opportunities and challenges of falsity in the context of virtual influencers

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  • Sands, Sean
  • Ferraro, Carla
  • Demsar, Vlad
  • Chandler, Garreth

Abstract

Influencer marketing has become a dominant and targeted means for brands to connect with consumers, but it also brings risks associated with influencer transgression and reputation damage. In recent years, virtual influencers have gained popularity and given rise to falsity, or artificially created and manipulated influencers that are revolutionizing the field of influencer marketing. A virtual influencer is an entity—humanlike or not—that is autonomously controlled by artificial intelligence and visually presented as an interactive, real-time rendered being in a digital environment. As brands increasingly seek to engage virtual influencers to connect with and sell to audiences, we take a step back and discuss the opportunities and challenges they present for firms and managers. To help marketers understand this emerging field, we first document the rise of virtual influencers. Then, we discuss consumer reactions to virtual influencers before unpacking their associated opportunities and challenges for brands and marketers. Finally, we conclude with an overview of implications and future considerations.

Suggested Citation

  • Sands, Sean & Ferraro, Carla & Demsar, Vlad & Chandler, Garreth, 2022. "False idols: Unpacking the opportunities and challenges of falsity in the context of virtual influencers," Business Horizons, Elsevier, vol. 65(6), pages 777-788.
    • Handle: RePEc:eee:bushor:v:65:y:2022:i:6:p:777-788
    DOI: 10.1016/j.bushor.2022.08.002
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    References listed on IDEAS

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    1. Grewal, Dhruv & Roggeveen, Anne L. & Nordfält, Jens, 2017. "The Future of Retailing," Journal of Retailing, Elsevier, vol. 93(1), pages 1-6.
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    3. Sands, Sean & Campbell, Colin & Ferraro, Carla & Mavrommatis, Alexis, 2020. "Seeing light in the dark: Investigating the dark side of social media and user response strategies," European Management Journal, Elsevier, vol. 38(1), pages 45-53.
    4. Campbell, Colin & Sands, Sean & Ferraro, Carla & Tsao, Hsiu-Yuan (Jody) & Mavrommatis, Alexis, 2020. "From data to action: How marketers can leverage AI," Business Horizons, Elsevier, vol. 63(2), pages 227-243.
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    Cited by:

    1. Alboqami, Hassan, 2023. "Trust me, I'm an influencer! - Causal recipes for customer trust in artificial intelligence influencers in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    2. Ferraro, Carla & Hemsley, Alicia & Sands, Sean, 2023. "Embracing diversity, equity, and inclusion (DEI): Considerations and opportunities for brand managers," Business Horizons, Elsevier, vol. 66(4), pages 463-479.

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