Considering the possible reach and engagement influencers

Command on social media, companies have either begun embracing influencers on social media, or plan to expand their efforts in this domain even more. For example, in recent conversations we had with social media executives, several of them stated the growing importance of influencers and mentioned how brands generally are looking to incorporate influencer marketing into their marketing strategies. Further, recent conversations with executives at some globally leading brands suggest that influencer marketing spending by big brands continues to rise.

While influencer marketing on social media is not new, we believe it has a lot of potential to develop further as an industry. In a recent working Cork Bicycle shop paper, Duani et al. (2018) show that consumers enjoy watching a live experience much more and for longer time periods than watching a prerecorded one. Hence, we think live streaming by influencers will continue to grow, in broad domains as well as niche ones. For example, streaming of video game playing on Twitch, a platform owned by Amazon, may still be niche but shows no signs of slowing down.

However, live platforms are limited by the fact that the influencers, being human, need to sleep and do other activities offline. Virtual influencers (i.e., “CGI” influencers that look human but are not), on the other hand, have no such limitations. They never get tired or sick, they do not even eat (unless it is needed for a campaign). Some brands have started exploring the use of virtual influencers (Nolan 2018), and we believe that in coming years, along with stronger computing power and artificial intelligence algorithms, virtual influencers will become much more prominent on social media, being able to invariably represent and act on brand values and engage with followers anytime.