What is UGC and why is it so popular?
User-Generated Content (UGC) is content created by customers, fans, or influencers rather than brands. This content can include photos, videos, reviews, comments, stories, and other formats that are shared spontaneously or in response to a prompt on social media.
The reason UGC is so popular lies in its authenticity and reliability. While traditional advertisements are often perceived as promotions with a clear commercial intent, UGC comes directly from real people and includes genuine experiences with the product or service. Consumers are more willing to trust reviews from other customers than promotional messages directly from brands.
How and where is UGC used?
UGC is used practically on all social media platforms – TikTok, Instagram, Facebook, YouTube, and LinkedIn. Brands often incorporate it into their marketing strategies in several different forms:
1. Reviews and ratings
This is one of the most common forms of UGC that helps businesses build credibility for their products and services. When customers share both positive and negative experiences, other consumers gain a realistic view of the quality of a given product. Companies can leverage these reviews to improve their services while also promoting them as social proof.
2. Customer photos and videos
Shared visuals from actual users of the products bring credibility and authenticity. Users can post snapshots from everyday life showing how products are used in real situations. Brands often repurpose these posts and share them on their official channels, strengthening their relationship with customers.
3. Unboxing videos
This format is particularly popular on platforms like YouTube and TikTok. Customers film themselves unboxing new products, describing their first impressions and testing their features. Unboxing videos naturally generate anticipation and excitement around a product and can be a powerful sales tool.
4. Contests and challenges
Many companies actively encourage users to create UGC through contests and themed challenges. Users are motivated to share their content in exchange for a chance to win. This type of content not only increases audience engagement but also extends brand awareness through shared posts.
5. Influencer marketing
Collaborating with influencers is another way to use UGC to enhance brand visibility. Influencers with loyal communities can present products in an authentic way, which carries a higher level of credibility than traditional advertisements. The content created in this way has the potential to reach a wider audience and strengthen the brand's reputation.
6. Community involvement
Many brands strive to build a community of loyal customers around their product or service. Sharing content from customers on the brand's official channels not only fosters customer relationships but also creates a sense of exclusivity and belonging. This approach encourages more users to interact and share their own experiences.
Statistics that validate the power of UGC
92% of consumers trust content created by other users more than traditional advertising. (Nielsen)
79% of people say that UGC influences their purchasing decisions. (Stackla)
UGC videos generate 29% higher conversion rates than studio-created ads. (Social Media Today)
Posts containing UGC receive 28% higher engagement than branded content. (HubSpot)
Branded ads with UGC have 50% lower cost per click (CPC) than traditional ads. (Shopify)
Benefits of UGC for Businesses
If companies use UGC correctly, they can gain many advantages:
Higher Credibility
Authentic content from customers feels natural and increases brand credibility because it comes from real users rather than the companies themselves. People tend to trust the experiences of other customers more than paid advertisements, which can significantly enhance the perception of the brand as transparent and reliable.
Greater Audience Engagement
UGC encourages interaction and user engagement on social media by actively involving them in communication with the brand. When customers share their own experiences, their friends and followers are more likely to engage in discussions, increasing reach and interactions.
Cost Savings on Content Creation
Instead of producing expensive branded content, companies can utilize content from their customers, saving both time and financial resources. This approach allows brands to focus investments on promotion or innovation while relevant and quality content emerges organically.
Higher Conversion Rates
UGC helps persuade potential customers to buy as it showcases real-life use of products and services. Consumers often make decisions based on the experiences of others, and if they see positive feedback, they are more willing to purchase the product.
Greater Reach and Organic Growth
User-generated content spreads more naturally than advertisement and has a greater potential to go viral. When people share content with their friends and followers, brands can reach a larger audience without the need to pay for expensive advertising campaigns.
Conclusion
User-Generated Content is not just a trend but a strategic tool that helps brands build trust, increase user engagement, and drive sales. In an age where consumers trust the experiences of other users more than traditional advertising, UGC is key to success on social media. If your brand has not yet leveraged UGC in its marketing strategy, now is the time to start!
Need advice or want to start using UGC videos in your marketing communication? Write to us at info@webetter.cz
