Exploring The Benefits Of User Generated Content

User Generated Content (UGC) has grown in popularity in recent years. Why is User Generated Content so important & what are the benefits of using it? In this article we’ll explore why UGC campaigns work and why it is a vital part of modern marketing strategies.

What exactly is UGC?

Traditionally, UGC is content created by a user of a product or service, typically a customer. The content they create is focused on the product or service. This could be a:

• A customer sharing a post-work out photo at a new gym.
• A customer sharing a video of their new coffee bean grinder.
• A customer sharing their before and after results of a skincare product.

This type of content resonates hugely with consumers who trust authentic customer reviews.

How is UGC used in advertising?

Given the rising popularity of UGC, advertisers have started to use UGC in advertising to level up their performance marketing results. This involves the collection and production of UGC followed by using the asset in a digital paid advertising campaign.

Using UGC in digital advertising has huge benefits to performance, yielding higher click-through rates, conversion rates and ultimately lower acquisition costs. It can be very hard to distinguish what is an ad, and what is genuine UGC content. 

Due to UGC’s popularity advertisers now actively look for smaller creators to feature in their ad creatives. Brands are choosing small creators & unknown creators to represent them to replicate the trust and authenticity produced from organic UGC.

Perhaps most interestingly, as there is no requirement for a social following to produce UGC, 1000’s of UGC creators are building careers by producing content for brands. You can find UGC creators across a whole range of demographics, locations and niche’s.

The difference between UGC & Influencer Content

UGC style ads are promotional content for brands where a consumer talks about a product or service in a positive way. Whilst this content may look like Influencer content, it is not always distributed to a creator’s following. 

This is for a number of reasons:

• UGC ads don’t require a social following, as they reach consumers through paid impressions in ad campaigns, not through an influencer’s organic reach.
• UGC can be commissioned by an advertiser to be made by anyone (even paid actors). As a result content may be made by consumers, employees or small creators who don’t have a social following.
• Often creators will charge more for distribution on their social channels, so brands can save money by just purchasing the content for advertising use.

But if the creator isn’t distributing the content to their own social channels, why would a brand ever outsource content creation to them when they have in-house creative teams or agencies that can produce high-value assets? Why would User Generated Content be so important?

Why UGC Works for Advertising Campaigns

Authenticity and Trust: 

One of the primary advantages of UGC is the authenticity and trust it brings to a brand’s online presence. When customers see that others have had positive experiences with a company, it serves as social proof and builds credibility. 

In fact, 31% of consumers say advertisements that feature UGC content are more memorable than traditional ads without it (Jukin Media), and approximately 88% of consumers say they are influenced by recommendations from family and friends when making purchasing decisions (Gallup).

Cost Effectiveness

Cost-effectiveness is another one of the key benefits of UGC. Unlike producing content in-house with dedicated studios and professionals, UGC significantly reduces content production costs while still delivering high return on investment (ROI), driving traffic to websites, and boosting overall visibility. Brands can tap into the creativity and enthusiasm of their customers and fans, allowing them to become active contributors to the brand’s content ecosystem.

Brand Image 

UGC campaigns contribute to shaping a positive brand image. By placing customers and employees at the forefront, UGC humanizes marketing efforts and creates a more relatable and inclusive brand. The diverse perspectives and creativity of UGC provide unique content that brands may not have created otherwise, attracting a wider audience and fostering a stronger emotional connection with customers.

Engagement & Conversions 

UGC campaigns also often outperform in terms of engagement and conversions – typically because it fosters a stronger sense of community and connection. Take for example LUSH, whose encouragement of customers to share their brand experience ultimately ended up boosting site traffic 43%. Shopify affirms this sentiment, and has reported that ads using UGC receive 4x higher click-through rates compared to other ads—and a 50% drop in cost-per-click!

Want to create UGC campaign of your own?

While you may think that your campaigns will be a drop in the large bucket of UGC content out there, in reality, as few as 16% of brands have any sort of strategy regarding User Generated Content. With a proper plan to test, learn and scale, you can easily snatch up share of voice against competitors.

In order to run an effective UGC campaign, it’s important to employ a test and learn approach. Ensure that your UGC advertising is tested effectively against your current best performing ads and ensure you plan your media before sourcing your UGC creative to avoid wasting budget and impressions.

We also always recommend that brands outsource this task (if not the entire UGC campaign) to a performance marketing agency, as they’ll be able to run the campaign with the correct methodology to get statistically significant learnings & excellent results.

Work with us!

At Realtime Agency we specialize in the planning & executing UGC campaigns that provide value for our clients. As a performance marketing agency we pride ourselves on delivering incredible results for our clients. To learn more about how UGC can work for your brand, contact us below.