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What Are VTubers? Exploring the Fascinating World of Virtual YouTubing

6/8/2023
Written by
Mark Kelly

Before we get started on what VTubers are, you can check out a brief history of them! Luckily, we have one prepped and ready to go entitled “VTubers: A Brief History“.

What are VTubers?

Virtual YouTubers, or VTubers, are content creators who operate 2D or 3D avatars while they stream or create content. These avatars can speak, emote, and interact with their audience in a number of ways by using motion capture or other similar technology. They are typically modelled after anime characters and are used to “represent” the content creator. Now, I say represent loosely here because individuals can deviate from their “real” personality for the sake of their own privacy. 

So why are VTubers so popular?

The popularity of VTubers has grown significantly in recent years. The VTuber market was valued at over $5 billion in 2025 and is projected to grow significantly over the next decade, with gaming content accounting for over 65% of what audiences consume on the platform. Their ability to create a unique personality and interact with their audience has helped them become a cultural phenomenon, attracting millions of viewers.

For some, it’s easier for them to go wild as part of their character, compared to when they show their real facecam for a reaction. For others, they just enjoy the anonymity in VTubing, allowing them to either pop off or just be super casual when playing, basically playing for fun. 

But for many, it’s a great avenue to keep people entertained for hours.

While not many know the real look of these VTubers, their anonymity has only added to their popularity and charm. Because of their growing popularity, some have even created agencies specifically for VTubers. Some of the most popular agencies are Hololive, Nijisanji, and VShojo.

The future of VTubers showing next generation virtual YouTuber technology and audience growth

But what do they do? And how do they earn? 

They can do anything actually. Gaming, crafting, just chatting. Honestly, they can do whatever a human can do, except appear face-to-face because it defeats the purpose.

The common format we do observe is gaming, but Vtubers have built massive audiences around cooking streams, drawing sessions, karaoke nights, and even study-with-me streams. Variety is part of the appeal, so you never quite know what a VTuber is going to do next, and that’s why the audience sticks around. 

Beyond content, VTubers interact with their communities in ways that feel surprisingly personal despite the virtual barrier. They respond to chat in real time, build inside jokes with their regulars, and develop ongoing storylines and characters that keep viewers coming back. For many fans, watching a VTuber feels less like watching a streamer and more like hanging out with a friend who happens to have an anime avatar.

On the earnings side, VTubers monetise in several ways. Subscriptions and memberships on platforms like YouTube and Twitch give fans access to exclusive content and emotes. Super chats and donations during live streams are another major income stream — and in the VTubing world, these can be significant. Top VTubers regularly receive thousands of dollars in a single stream from dedicated fans.

Merchandise is also a big part of the business and it has been since the very beginning. 

Kizuna AI, widely recognised as the first VTuber, debuted on YouTube in 2016 and quickly demonstrated that a virtual personality could build a real commercial brand. She released merchandise, collaborated with major companies, and proved that an avatar was not a limitation but an identity that fans would invest in. That blueprint is still very much alive today. Agencies like Hololive and Nijisanji produce branded goods ranging from acrylic stands and plushies to voice packs and limited edition apparel. Brand sponsorships and collaborations with games, snack brands, and tech companies have also become increasingly common as VTubers grow their reach.

For independent VTubers outside of agencies, the path is harder but not impossible. Many build their audiences organically through consistent content and community engagement before landing sponsorship deals or merchandise opportunities of their own.

In Short…

No one knows what’s in store for VTubers, but their insane popularity shows that they are not going away anytime soon. New technology means new ways for content creators to represent themselves and new ways to keep their audience eager to see what comes next. 

We are in a content-creating phase as of late. Some people find bread falling flat on the ground as entertainment. So it is understandable why they have drawn the interest of people all over the world given their capacity for producing distinctive and captivating content, sense of intimacy and community, and promise for future expansion and innovation.

With the innovations of the world today, the multitude of personalities that differ one VTuber from another, you can expect that they will continue to entertain and amaze their growing audience. If you want to know more about the industry and see how you and your game can thrive like the bustling VTubing community, get in touch with us today!

Mark Kelly

Paid media and user acquisition specialist with 20+ years in digital marketing and 10+ years in games.
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