User Generated Content (UGC) leads ROI for brands
User-Generated Content (UGC) is content created by customers or users of a brand or organisation, and can take the form of images, videos, blog posts, comments, reviews, and other online mediums. It has grown in importance over the years as a powerful form of digital marketing, and as technology advances, companies are increasingly relying on UGC for marketing purposes due to its tailored advertising and cost-effectiveness.
Not only does UGC provide an authentic representation of a company’s products and services that resonates with potential customers, it also drives user engagement, increases brand loyalty, and allows companies to tap into existing customer relationships. In fact, 79% of consumers say UGC impacts their purchasing decisions, whereas only 13% believe branded content has the same impact, and influencer-created content has even less impact at 8%.
UCG offers a distinct advantage over traditional forms of advertising, as it is generally more economical and has a more relatable tone. It also has the potential to reach audiences far beyond what traditional methods could hope to, as it often spreads rapidly through social channels. Additionally, harnessing the authenticity of UGC can add an important layer of trustworthiness and credibility to a product or brand, which plays a key role in making potential customers feel comfortable with their purchase decision. Similarly, UGC gives customers a platform to express their feelings about products or services, allowing companies to obtain valuable customer feedback. This insight can then be used to inform future decisions regarding marketing strategies and product improvements, helping to ensure that businesses remain competitive in the ever-evolving digital landscape.
Companies can incentivise consumers to post positive reviews and photos of their product or service, thereby increasing organic reach and bolstering credibility. Additionally, they can feature real customers in ads, repurposing their user-generated content to provide a more personal touch to campaigns. By identifying ways to effectively leverage consumer-generated content, companies can increase visibility while engaging with loyal customers across multiple channels. However, companies must navigate the legal barriers of obtaining UGC to use for their own purpose. The content produced on social media is legally protected and can only be reused by a brand for advertisement with express permission. Fortunately, there are some platforms that reward consumers for generating content and provide this content to brands in a commercial agreement.
UGC has become an invaluable asset for businesses looking to gain visibility and reach their target audience. It is more cost-effective than traditional advertising, as it is often generated by passionate fans of the brand or product in question, providing an insightful look into how customers interact with and use the product, along with their positive experiences. Moreover, UGC is more authentic than traditional ads with 90% of consumers saying that authenticity of a brand helps to build trust. User generated reviews provide social proof that other customers are using and enjoying the product and can mean the difference between your brand being selected. Recently, we have seen that, not only the quality of reviews matter, but the amount of reviews are taken into consideration by the consumer meaning larger volumes of reviews increase brand trust and recognition.
Furthermore, UGC allows brands to access the conversations taking place on social media regarding their products and services, allowing them to monitor customer feedback and gain a better understanding of what resonates with their target audience. UGC serves as a powerful tool for businesses seeking to leverage visibility and reach within their target markets. It is more cost effective, easier to produce and has more impact than traditional advertising content. Platforms such as Shping have developed rewarding experiences for users that submit their content meaning a constant development of UGC for brands to leverage to increase their authenticity, brand recognition and trust.
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