The impact of virtual influencer product placement on brand awareness in Indonesia

The increasing use of virtual influencers in marketing has opened new avenues for product placement strategies on social media. This study investigates how virtual influencer product placement affects brand recall and brand salience among university students in Jakarta and Yogyakarta, representing diverse economic and cultural segments in Indonesia. Data were collected from students at Universitas Tarumanagara [Tarumanagara University], Universitas Trisakti [Trisakti University], and Universitas Krida Wacana [Krida Wacana University] in Jakarta, and Universitas Negeri Yogyakarta [Yogyakarta State University] and Universitas Gadjah Mada [University of Gadjah Mada] in Yogyakarta. Jakarta, the country’s economic hub, represents a high-income urban consumer market, whereas Yogyakarta reflects a more cost-conscious and service-oriented shopping culture. A pre-test and post-test experimental design without a control group was employed, featuring Instagram content from the virtual influencer “Allysa Gladys” promoting Nike and Gucci products. The study involved 319 university students from Jakarta and 211 from Yogyakarta. The results showed a significant increase in brand recall and brand salience after exposure. In Jakarta, brand recall for Gucci increased from 0.6050 to 0.7994 (p < 0.01) and for Nike from 0.8527 to 0.9248 (p < 0.01). In Yogyakarta, Nike’s brand recall rose from 0.4737 to 0.9617 (p < 0.01), while Gucci’s recall increased from 0.5762 to 0.8190 (p < 0.01). Brand salience also showed improvement, with Nike in Jakarta (p < 0.01) and Yogyakarta (p < 0.01) showing a stronger effect than Gucci in both cities (p < 0.01). These findings demonstrate that product placement via virtual influencers effectively enhances brand awareness. AcknowledgmentThis research was funded by the Directorate General of Higher Education, Research, and Technology – Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia, through the Regular Fundamental Research scheme (Number: 829/LL3/AL.04/2024). The authors would like to express their gratitude to Angely Olivia Putri and Fransisca Tiffany for their assistance during the research process.