Get Ready for AI Pitches: TikTok Considers Virtual Influencers
TikTok is reportedly developing a new feature that would allow brands to utilise virtual influencers. These AI-generated characters would promote products through videos and live streams directly within the app. This move comes as no surprise considering the success of similar virtual influencers on the Chinese version of TikTok. However, the question remains: will Western audiences be as receptive to these digital salespersons, and will it translate to increased spending on TikTok?
The Rise of AI Hosts in China
China's digital marketplace has embraced AI hosts. These simulated characters can stream 24/7, often generating significant sales. Their popularity stems from their cost-effectiveness. As reported by MIT Technology Review, companies can create deepfake avatars for a mere $1,000, allowing them to clone a human streamer and have it work tirelessly.
The Power of AI Scripting and Interaction
These AI creations are programmed to follow advertiser scripts, with AI even generating the scripts themselves. Human involvement is minimized, requiring only basic product information input and script approval. More advanced versions can even respond to live comments in real-time, creating the illusion of genuine audience interaction and dynamically adjusting marketing strategies based on viewership.
The Potential Benefits for Brands
While the video characters might appear slightly robotic upon close inspection, the potential benefits for brands are undeniable. These AI influencers offer a cost-effective, tireless sales force that can continuously promote products and engage with audiences.
Mimicking Douyin's Success: Can AI Drive TikTok Commerce?
TikTok aspires to replicate the success of Douyin, its Chinese counterpart, where live-stream shopping reigns supreme. While Western audiences aren't as accustomed to in-app shopping on TikTok compared to Douyin, the platform is actively implementing initiatives to bridge this gap.
Western Audiences: Open to Spending, But Not on Products (Yet)
TikTok users are demonstrably comfortable spending within the app, with creator donations steadily increasing. However, the majority of in-app spending is directed towards supporting creators, not products offered on TikTok Shop or through shopping live streams. While there are signs of growth, it pales in comparison to Douyin's massive $270 billion in consumer spending in 2023, compared to TikTok's $3.8 billion.
Virtual Influencers: The Key to Unlocking TikTok's E-Commerce Potential?
With existing human creators already blurring the lines of authenticity on the platform, could AI influencers be the catalyst for propelling TikTok's commerce features to new heights? Only time will tell how well these AI bots perform in the role of product salespeople and whether they'll resonate with Western audiences.
