Marketing of the Future: Will Restaurants in India Collaborate with Virtual Influencers?
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By Sakshi singh , Contributory Author
09 Jan 2024 | 10 min read
Imagine a bustling Indian marketplace, alive with the sizzle of street food and the melodious calls of vendors. Here, amidst the vivid tapestry of culinary traditions that have simmered for centuries, a new character emerges on the scene: the virtual influencer. This story isn't just about pixels and algorithms; it's a saga of tradition meeting technology. It's about how these ethereal digital beings are not just reshaping marketing strategies but can also becoming an integral part of the rich tapestry of Indian culture. The Indian restaurant industry is poised to embrace a transformative marketing revolution with the advent of virtual influencers and AI-driven personalities.
Influencer marketing has become a significant part of digital marketing plans in India, with more than 400 million Indians having access to social media before the pandemic. According to a report by GroupM, the top four categories for influencer marketing in India are personal care (25 percent), F&B (20 percent), fashion and jewelry (15 percent), and mobile and electronics (10 percent). Celebrities contribute 27 percent while influencers contribute 73 percent and nearly two-thirds of the Indian population follow an influencer.
Commenting on the trend, Harsha Razdan, CEO, dentsu South Asia said, “Influencer marketing has revolutionised our approach to connecting with potential customers and elevating brand awareness. With the exponential growth of social media platforms, influencers have cultivated loyal and engaged followers – making them indispensable assets in our marketing strategies. They possess a unique ability to foster trust and credibility among their followers. By partnering with influencers, brands can tap into this trust, build credibility, and authentically promote their products or services.”
Emergence of Virtual Influencers: A Global Trend Reaching India
Globally, virtual influencers have revolutionized marketing, and India is joining this trend. Kyra, Mumbai's first meta-influencer, and Naina Avtr, another notable virtual influencer created by Avtr Meta Labs, are prime examples. Naina Avtr, a digital avatar hailing from Jhansi, Uttar Pradesh, is a fashion model with a significant following on Instagram. Her creation by AI professionals indicates the potential of virtual influencers in engaging diverse audiences and creating unique content that resonates across various demographics.
According to industry experts, virtual influencers with a following of 200,000-400,000 can make INR 5 to 10 lakh per campaign against INR 40,000 to 1 lakh for an actual human. As social media influencers, Kyra and Naina have hit the big time. Only thing is, they're not actually real, not entirely anyway.
Virtual Influencers: The New Marketing Avenue for Restaurants
The integration of virtual influencers in the restaurant sector opens up novel marketing avenues. These digital personalities can uniquely showcase a restaurant's culture, cuisine, and experiences, offering a blend of storytelling and brand promotion. They are especially effective due to their cost-efficiency, agelessness, immunity to scandals, and multilingual capabilities.
The Indian Marketing Landscape and Influencer Impact
In India, influencer marketing has rapidly evolved from a niche strategy to a mainstream marketing tool. Over 2 million content creators across various industries, including food and beverage, have fueled this growth. The Indian influencer market, valued at INR 2,200 crore by 2025, is driven by the rising popularity of short video formats and social media consumption. Influencer marketing is now employed in 93 percent of marketing campaigns, indicating its crucial role in modern advertising strategies.
Trust and Relatability: The Core of Influencer Marketing
Customers tend to trust influencers, making them more likely to act upon their recommendations. This trust has shifted marketing budgets, with 73 percent now allocated to nano, micro, and mid-tier influencers due to their relatability and audience trust levels.
Pranav Panpalia, founder of Opraahfx, says that virtual influencers offer scalability and versatility seamlessly integrating various digital platforms and reaching a wider audience. In the nascent phase, virtual influencers are priced decently. They are neither cheap nor that expensive and are priced similarly to mid-size influencers and hence can help smaller brands gain big.
Virtual Influencers and Human Content Creators: A Coexistence
In the evolving marketing ecosystem, virtual and human influencers coexist, each bringing distinct advantages and challenges. Virtual influencers, with their precision-engineered appeal and controlled messaging, offer consistency and brand safety, free from the risks of human error or controversy. They are a blend of technology and creativity, allowing brands to explore innovative storytelling and engagement strategies that might be impossible with human influencers.
“Virtual influencers lack the authentic human touch, an element that resonates deeply with audiences. Human influencers bring personal experiences, emotions, and genuine interactions that foster a sense of trust and relatability with their followers. They can share personal stories, respond dynamically to current events, and create content that reflects the complexities of human nature,” Amit, co-founder of Samosa Party commented.
This coexistence is not just a parallel operation but a symbiotic relationship. Virtual influencers can set new creative standards and push the boundaries of what is possible in digital marketing, thus inspiring human influencers to elevate their content and engagement strategies. On the other hand, the authenticity and relatability of human influencers challenge the creators of virtual influencers to make their avatars more lifelike and emotionally resonant.
The Role of Local Language Content
With an estimated 210 million Indians accessing internet content in local languages, there is a growing emphasis on collaborating with local influencers. This trend highlights the need for personalized and culturally resonant marketing strategies, a domain where virtual influencers can excel.
Future Perspectives: Coexistence and Collaboration
The future of marketing in the Indian restaurant industry with virtual influencers promises a blend of tradition and innovation. The success of such initiatives will hinge on striking the right balance between technological advancements and the cultural essence of Indian hospitality. As the industry adapts, dining experiences are set to become more interactive, personalized, and culturally inclusive, marking a new chapter in the realm of hospitality.
The journey of influencers like Kyra and Naina Avtr and the overall influencer marketing trends in India indicate a growing acceptance and potential for innovative marketing strategies in the Indian context. With the digital advertising business expected to expand significantly, influencer marketing, including virtual influencers, will play a crucial role in shaping the future of marketing in India's restaurant industry.
Imagine a bustling Indian marketplace, alive with the sizzle of street food and the melodious calls of vendors. Here, amidst the vivid tapestry of culinary traditions that have simmered for centuries, a new character emerges on the scene: the virtual influencer. This story isn't just about pixels and algorithms; it's a saga of tradition meeting technology. It's about how these ethereal digital beings are not just reshaping marketing strategies but can also becoming an integral part of the rich tapestry of Indian culture. The Indian restaurant industry is poised to embrace a transformative marketing revolution with the advent of virtual influencers and AI-driven personalities.
Influencer marketing has become a significant part of digital marketing plans in India, with more than 400 million Indians having access to social media before the pandemic. According to a report by GroupM, the top four categories for influencer marketing in India are personal care (25 percent), F&B (20 percent), fashion and jewelry (15 percent), and mobile and electronics (10 percent). Celebrities contribute 27 percent while influencers contribute 73 percent and nearly two-thirds of the Indian population follow an influencer.