The landscape of digital marketing is rapidly evolving with the integration of AI-generated avatars that are reshaping interactions on social media and various digital platforms. These advancements allow for the swift creation of lifelike characters using diverse inputs such as audio, images, and videos. Marketers are faced with the challenge of deciding between a hyper-realistic appearance or steering clear of what is known as the "uncanny valley," a term that describes the discomfort consumers feel when encountering digital representations that are almost human yet distinctly fall short.
Joseph Perello, CEO of the creator marketing platform Props, noted the potential consequences of poorly received avatars, asserting that they risk being perceived as "inauthentic and superficial." As brands and content creators experiment with chatbots and virtual avatars for promotional campaigns and customer service, the focus is shifting towards monetisation strategies. This mirrors the explorations seen with augmented reality and the metaverse, where marketing professionals are assessing potential use cases and revenue prospects.
AI technology plays a crucial role in this equation, as experts recognize the need for a delicate balance between engaging consumers and avoiding discomfort. Amy Luca, the global head of social at Monks, remarked, “I think virtual influencers are already working,” indicating a growing acceptance of virtual avatars in building monetisable audiences.
Veronica Lin, head of brand and strategy at PalUp, highlighted the advantages of these artificial avatars, stating, “[Our AIs] emulate the relatability of a trusted friend,” customising suggestions based on user preferences such as hobbies and local interests. Noteworthy virtual influencers are already gaining traction, such as Spanish fitness and gaming enthusiast Aitana Lopez, who reportedly earned up to $11,000 a month. The trajectory of other influencers, like Japan's Imma, remains uncertain.
Recent developments in the sector include TikTok's announcement of introducing AI-generated avatars for brands and creators during the Cannes Lions festival. Furthermore, companies are testing these avatars across various functions in training, social content creation, and enterprise applications. An example includes Publicis, which has employed AI video generator HeyGen to create an extensive number of bespoke thank-you messages aimed at employees.
Adam Halper, a core product manager at HeyGen, emphasised the progress in avatar technology, stating, “We are crossing the uncanny valley,” as a result of advancements making it increasingly difficult to distinguish between real and AI-generated individuals. Established in 2020, HeyGen provides several services that empower users to create video avatars—capable of forming "digital twins" and duplicating voices—alongside interactive avatars that engage users based on provided information. These avatars can produce a myriad of content within minutes.
Despite these advancements, Halper acknowledged users' concerns regarding voice cloning accuracy, with many highlighting a disconnect between the avatar's visual realism and its vocal delivery. The company is iterating on additional features to enhance user control over avatar appearances and behaviours. However, audio reproduction remains a significant obstacle in AI development.
Perello expressed uncertainty over whether younger generations would embrace these AI avatars long-term, noting, “These digital creations, though technically impressive, often lack the genuine human connection that resonates with audiences.” He pointed out that Gen Z, in particular, tends to prefer authentic content from real individuals, suggesting that the industry must consider these preferences moving forward.
Alternatively, some proponents suggest that adopting a more cartoonish aesthetic for virtual avatars could skirt the issues associated with the uncanny valley. The rise of VTubers, or virtual YouTubers, exemplifies this approach. These digital personas, like the popular pink-haired character Miko from Hololive Productions, successfully attract large audiences across streaming platforms.
Motoaki Tanigo, CEO of Cover Corporation, which operates Hololive, characterised VTubers as a blend of "the character and the personality of the person behind them," indicating a marked preference for authentic, relatable content in digital spaces. This has led stakeholders to explore the ideal amalgamation of visuals, audio, and editing to realise the full potential of avatars in the digital sphere—whether that manifests as an extraterrestrial entity with a human voice or a hyper-realistic human avatar.
Source: Noah Wire Services