The value of User-Generated Content

User-Generated Content. It’s a term that’s popping up more and more in the world of influencer marketing these days. On TikTok for example you can find thousands of videos about it and you'll notice influencers add ‘UGC Creator’ their profiles more often than a year ago. In this new article we share what user-generated content is all about and how you can benefit from it!

 
What is User-Generated Content exactly?

User-generated content (UGC) is any form of content created and shared by someone based on their experiences, opinions, ideas, or feedback. It can be your customers, clients, employees, or influencers who share this content. Digital platforms, especially social media networks, are the hub of user-generated content. In terms of marketing, UGC is the content that is relevant to the brand. Primarily videos and photos, however testimonials, reviews etc. also fall under the term user-generated content.

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Why is User-Generated Content so important?

Businesses were initially wary of adopting UGC to represent their brand, and for a valid reason. It was once difficult to defend switching polished professional content for unrefined consumer content. UGC is no longer something that marketers can afford to ignore, as phone cameras have improved significantly with each passing year and social networks have made it simple to access. Never before has user-generated content been so popular thanks to the growth in socials media platforms. Some of the greatest content creators today were once you’re everyday consumers.

People are more likely to believe a real person's suggestion than what a company claims about itself. In fact, only 15% of consumers indicated brand-created content was what they wanted to see, while 56% said user-generated material was the content they most wanted to see from companies.

Why then does UGC score so highly for authenticity? Customers simply relate to everydaypeople more when they look like them or someone they know. It is alsoimpossible to fake the validity that comes from genuine UGC.

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The benefits of User-Generated Content

User-generated and organic-reach content has never been more popular thanks to the growth of social networking platforms. Customers and brand loyalists mainly generate this brand-specific content, which is vital in influencing the buyer's journey. Here are a few examples on why you should invest in UGC!

Brand Loyalty

User-Generated Content cultivates brand loyalty as consumer create the content rather than official representatives of the brand like celebrities for example. Companies can increase customer trust by putting their audience first and encouraging them to contribute to the brand's image building. For example with hashtags, publishing and tagging their content on the brands' social channels.

Cost Effectiveness

UGC is a low-cost option for companies looking to promote their brands without spending an overload on advertisements and promotions. Most UGC content is created organically by customers who want to share their experience with a product or service, connect with like-minded people, or simply get some perks.

When working with influencers, brands must pay for both the content and the posts onthe influencer's channels. The more reach and engagement an influencer has, the more a brand must pay — which can be in the thousands for macro influencers!

With UGC content, brands only need to pay for the content itself, which is often of equal (or better) quality than content from influencers. It also gives them complete control over the distribution and positioning of the content.

Influencing purchasing decisions

Because UGC influences purchase decisions, many brands pay to use the content in social media ads. UGC serves as social proof, demonstrating that real people are purchasing and using a product, which can lead to increased sales. Furthermore, UGC does not appear to be a blatant advertisement, which can make it more engaging when used in ad campaigns.

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UGC Creators vs. Influencers

A UGC creator creates sponsored content that appears authentic but is intendedto promote a specific business or product. A UGC creator finds its uniquenessin the quality of the content and creative concepts they can come up with foryour brand and products.

Video is the most popular format for UGC creators, especially on platforms like Instagram and TikTok. Creators typically film and narrate the content from their own point of view, giving it an authentic feel.

The primary distinction between UGC creators and influencers is that UGC creators create and deliver content to businesses without being required to post it on their channels (although some UGC deals may add this for an extra fee). The company usually pays influencers for both content and awareness to the influencer's audiences.

Despite the name, UGC creators are not producing organic UGC. UGC is typically created organically by customers and shared spontaneously in the form of photos, videos, testimonials, product reviews, and blog posts. Businesses can choose to re-share a customer's UGC without payment or contracts.

On the Influentials Platform you can now set up your own UGC campaign and collaborate with talented UGC creators! Feel free to contact your customersuccess manager for more information and help.

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