Why virtual influencers have died off despite the AI boom that has a chokehold on the industry

The generative artificial intelligence boom has the advertising industry enamored. Agencies and platforms are cranking out new tools and capabilities to dazzle marketers. However, virtual influencers — buzzed about up until late last year with the rise of Web3 and the metaverse — seem to have fallen out of favor.

Virtual influencers — or computer-generated characters on social media — like digital supermodel Shudu Gram, robot rapper FN Meka and most notably, Lil Miquela, made headlines over their true-to-life characteristics. Miquela is reportedly managed by Brud, a creative agency specializing in robotics, artificial intelligence. Meanwhile others have brand managers via an agency or brand. These faux influencers were often found alongside celebrities, promoting products and simulating real-life social media users.

These characters piqued advertiser interest and the industry touted it as the next big thing in influencer marketing. An interest that had brewed since the mid-2010s seemed to culminate a few years ago in tangible brand deals. For example, since her launch in 2016, Miquela has landed contracts with the likes of Prada, Pacsun and Calvin Klein. The latter of said brand deals landed the fashion retailer in hot water after rolling out a campaign in which model Bella Hadid and Miquela shared a kiss. It struck many as unrealistic and even offensive, per The New York Times.

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How Amazon’s payout structure for influencers puts a spotlight on creators’ low pay

Amazon’s shopping app, called Inspire, launched in December of last year modeled (at least aesthetically) after TikTok. Now, seemingly, it wants some of TikTok’s audience too.

The app amalgamates content sourced from influencers and brands to pitch products to users. Amazon said two weeks ago that it would pay influencers $25 a video to promote products on that shopping feed — calling into question how much creators deserve to be paid. Amazon declined to comment on this story.

In addition under the new pay structure, the company set a payout limit of $12,500 for influencers who submit a maximum of 500 videos. Amazon said they have a month to do so.

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Media Briefing: How digital publishers spent summer 2023 

This week’s Media Briefing recaps the major events from summer 2023 and how those trends are bound to impact the back half of the year. 

  • Summer recap
  • Cyberattacks on media companies increase 
  • CNN has a new CEO, new activity on BuzzFeed News’ homepage and more 

How publishers spent their summer

It was a hot summer of activity within the digital media space as publishers experimented with new technology, rode the social media rollercoaster and looked for ways to offset the hits to ad revenue. As autumn approaches, all that excitement is bound to bubble over into the back half of the year.

It seemed like a good time to catalog the major events from summer 2023 – from the introduction of generative AI in newsrooms to Twitter being rebranded to X – and draw some throughlines about what it all added up to. 

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New podcast studies showing growth in ad spend, listeners suggest the bubble hasn’t burst

A slew of new reports on the podcast market in the last few weeks are revealing an increase in both listeners and advertising spend on the medium, suggesting that, while the shininess around podcasts has worn off a little, the industry is still growing (and seemingly disproportionately for the biggest players in the space). 

That’s not to say there hasn’t been a contraction in the podcast market this year. Podcast platforms and networks, like Spotify and NPR, have cut their slate of shows and undergone layoffs. Paramount said it would launch fewer podcast shows this year than in years past. Some podcasters cut down on their slate of shows as part of a strategy to refocus their audio businesses on flagship podcasts.

But these decisions were not necessarily due to a lack of ad investment, according to Lauren Russo, evp and managing partner of innovation & performance audio at ad agency Horizon Media. It’s more so because of the bloated deals that had taken place during the pandemic (when listening peaked during lockdowns), she added.

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Amazon Prime Comes To Shopify Stores

The Buy with Prime app for Shopify will begin rolling out as invite-only to select Shopify merchants today and will be available to all U.S.-based Shopify merchants who already use or want to use
Amazon’s fulfillment network by the end of September.

Meta Finally Tests Legs For Horizon Worlds Avatars

What may be the longest-running joke about Mark Zuckerberg’s metaverse vision is that users’ avatars have arms, heads and torsos, but no legs – but that may be about to change.