Virtual Influencers: Brands Could Land Themselves in Trouble

How Virtual Influencers Could Hurt Your Brand

Your virtual influencer will operate online much as a real human influencer would. Even though they may not initially start as a brand ambassador when they gain enough popularity they can attract companies looking for endorsement deals. For instance, Miquela is an influencer for Chanel and Prada. Shudu was featured wearing Rihanna’s Fenty Beauty lipstick, and then the viral Instagram press.

So, if virtual influencers are so incredibly lifelike they can fool people to the degree that they go viral, is hiring social influencers as part of your Social Media marketing plan essential?

Swapping a celebrity endorsement for a virtual influencer sounds like a dream come true because instead of paying a person, you are merely paying the team that creates the virtual personality. However, the virtual influences themselves and the people creating them bring their own set of legal and PR issues, and many brands could be putting themselves at risk by making the switch. In this post, we’re going to cover several critical topics regarding virtual influencers, including:

  • Who Owns the Intellectual Property? 
  • Identity Issues & Moral Clauses 
  • Disclosure Issues
  • How a Virtual Influencer is created

Everyone knows that endorsers and spokespeople can be risky. What your spokesperson or endorser does away from your brand can generate damaging and harmful PR. Take, for instance, Paula Deen, who lost her contacts with Walmart and Food Network because of a comment she made before becoming famous. Or Roseanne, who recently had her show canceled on ABC because of her racist remarks on Twitter.

Brands are now using virtual influencers to eliminate the threat of a spokesperson creating a lousy brand image while still allowing them to tap into massive influencer audiences.

As published on AdWeek, let’s examine two cases of digital influencers. We have Shudu Gram and Miquela Sousa. Shudu is considered the world’s first digital supermodel, and Miquela is a virtual influencer. Both are merely online personas created by artists. Shudu is the creation of a photographer, and we have no idea who Miquela’s creators are, though more information is becoming available.

According to a story on Wired, in mid-April 2018, a Trump-supporting Instagram influencer named Bermuda hacked her account. Bermuda refused to return the statement unless she promised to tell the world the truth—the truth being that she is not a human being. But Bermuda isn’t either. Both are merely CGI creations.

In just a few months, the two of them have more than a million followers on Instagram. Shudu is positioned as a piece of art, somewhat like a mannequin. Miquela, however, is positioned like a normal girl. She posts pictures of herself with her friends on Instagram and claims to support Black Lives Matter. She also participates in media interviews.

It’s important to think about the long run. We’re not sure about the staying power of virtual influencers or if they will lose their appeal and die a quick death. It’s the human interaction that is in the Public’s Interest. Being a celebrity has a cycle. Consumers lift them up, tear them down, and become happy when they make a comeback. It’s the imperfection of the human being that ultimately creates that connection. Even though a virtual influencer can foster a relationship with their followers, it’s not quite the same thing.

Even if we consider virtual influencers as a trend that’s here to stay, there are some essential things for your business to consider before you decide to design the ultimate customer persona.

Who Owns the Intellectual Property?

A virtual influencer is the expression of an idea as a product. Whoever created the digital influencer will want to protect it and anything the influencer generates. Successful influencers promote brands, yours, and possibly others. Miquela not only promotes Prada but also has her music on Spotify.

Is it the brand whose product the influencer is pushing who created the virtual influencer or the artist who dreamed up the creation? If the intellectual property is generated internally, will that determine how legal agreements take shape versus if it was created externally by a third party? These intellectual property issues are essential when deciding to work with someone in-house or to hire someone outside.

Identity Issues and Moral Clauses

Any contracts should still include moral clauses, whether they cover only the virtual Identity or the creator’s identity. The terms help provide protection and recourse related to reputation, appropriation, and authenticity issues. It’s also vital to address anonymity contractually. Transparency, privacy, and trust are all critical issues for today’s customers. If the Creator is anonymous or decides to come out as the Creator, this will affect the virtual influencer’s value, so these considerations must be written into contract rights and obligations.

Consider this. No one knows who created Miquela. If her cover is blown and her consumers don’t appreciate the person who created her, it could create a backlash which may damage the brands involved, which is a risk that must be considered.

When you consider that Shudu, a digital creation of an African American model, was created by a white male, it’s no surprise there are issues of cultural appropriation because he is profiting from the image of a black woman without actually paying one. Though she was created due to Inspiration from other models, does the creator owe money to the models he said inspired him? Does he owe them a percentage of any proceeds? These imaginary people could lead to great change and intellectual property law.

Disclosure Issues

Currently, the Federal Trade Commission, FTC, and other Regulators haven’t said anything specifically about using virtual influencers. We can expect that the existing rules, such as endorsement guidelines, will apply where possible. A virtual identity can’t have an opinion based on experience, so it’s important to clarify whether the creator’s or the operator’s experience is relevant. You need to make sure you understand what disclosures are required under the current FTC guidance so you can stay ahead of any regulation that comes in the future as a result of the virtual influencer trend.

How a Virtual Influencer is Made

Miquela’s Instagram account was created two years ago. She is a 19-year-old Brazilian model and musical artist. In response to her success, New York Magazine wondered if they could create their version of the popular virtual influencer. The brand reached out to their in-house motion graphic artist with no experience and character design to build a model with the same visual appeal as Miquela.

Following a step-by-step approach beginning with building a default character and aligning features via references, applying the texture clothing and more, it only took 48 hours to complete their creation. This means that with the right tools and staff on hand, you can build your virtual influencer in as little as two days.

Will you invest in this for your brand? What do you think the implications will be for your business? Share your thoughts with us below in the comments.

Ready to Collaborate? Contact Us!

Please enable JavaScript in your browser to complete this form.
Blog Sidebar

Categories.

NEWSLETTER

Please enable JavaScript in your browser to complete this form.
Newsletter Signup