The Role of Virtual Influencers in Modern Marketing Strategies: A Literature Review

The rapid evolution of influencer marketing has introduced virtual influencers (VIs), AI-powered digital characters created through computer-generated imagery (CGI) and machine learning algorithms. This thesis systematically reviews existing literature to explore the strategic integration, effectiveness, consumer perceptions, and ethical implications of VIs in modern marketing strategies. Utilizing a structured approach based on SCOPUS-indexed academic articles, the research identifies that VIs offer brands significant advantages, including enhanced control, adaptability, global reach, and novelty appeal, making them effective for increasing brand awareness and projecting an innovative image. However, VIs face substantial challenges related to authenticity, trustworthiness, and consumer discomfort, particularly highlighted by the "uncanny valley" phenomenon, which can negatively impact consumer engagement and purchase intentions. Ethical concerns such as transparency, unrealistic beauty standards, data privacy, and consumer deception further complicate their integration into marketing strategies. Emerging regulatory frameworks suggest growing awareness and responsiveness to these ethical issues, yet comprehensive guidelines remain underdeveloped. Methodologically, most existing studies employ quantitative approaches, notably experiments and surveys, but qualitative methods like interviews and content analysis are gaining prominence, emphasizing the need for more diverse and longitudinal research designs. The review concludes that while VIs hold significant strategic potential for contemporary digital marketing, their long-term effectiveness heavily depends on ethical management, clear disclosure practices, and nuanced design strategies that mitigate negative consumer perceptions. Future research directions include addressing methodological gaps, exploring diverse cultural contexts, and assessing longitudinal impacts to fully understand the evolving role of virtual influencers in digital marketing.