What is User-Generated Content (UGC)? And Why is it Important?
Connor Rodriguez
Director @ ZeroTo1 (Founding Team) | TikTok Shop Partner, Influencer-Affiliate & Performance Creative Agency
This article will provide information on user-generated content (UGC):
What is user-generated content (UGC)?
User-generated content (also known as UGC or consumer-generated content, influencer-generate content and actor-generated content) is original, brand-specific advertisement-style content created by creators and/or your devoted customers.
The ads are then published on social media via media buying efforts or shared organically. UGC comes in many forms, including images, short-form videos, reviews, a testimonial, or even a podcast.
Fuel your organic and paid social efforts with high-performing UGC and a tailored creative strategy.
At ZeroTo1 🚀 , with our TikTok & Meta UGC strategy, we have a 100% success rate at achieving top-performing creatives for our clients in less than 60 days.
Where does UGC content come from?
Your Customers or Brand Loyalists
Have you noticed those unboxing videos on TikTok or posts on Instagram where customers rave about a brand? These are great examples of customer-generated content (CGC) that businesses can benefit from.
Your customers are often the best source of fresh new content, whether you've requested it or they've voluntarily shared it with their audiences.
Your most dedicated customers, whether you call them loyalists, ambassadors, advocates, or fans. They are often the most enthusiastic about your brand. When your customers are loyal, it's a great chance to ask them for user-generated content. You can then repurpose this content via paid media or share it organically.
UGC creators and/or actors
A UGC creator is someone who creates sponsored content that appears authentic but is designed to showcase a specific business service or product.
At ZeroTo1, we have a vetted UGC network of creators (200+) who are not creating traditional organic UGC — they’re paid to create content that emulates traditional UGC.
Are you an influencer, UGC creator or actor? Join our Creator Community!
Our method and process are founded on innovation, continual refinement and data analysis. We have gained the confidence of top-tier brands and are the agency of record to support UGC and performance marketing efforts.
Why is user-generated content important?
UGC plays a crucial role in all stages of a buyer's journey, as it helps to boost engagement and increase sales conversions, whether through paid or organic efforts.
UGC can be shared on various channels, including social media, email, landing pages and checkout pages.
Takes authenticity to the next level
Nowadays, brands have to fight to be seen online. Competition is fierce for attention on social media. As a result, buyers are more selective about the brands they interact with and purchase from, especially the notoriously fickle Gen-Z.
And it’s not just consumers who are passionate about authentic content. 60% of marketers agree that authenticity and quality are equally important elements of successful content. And there’s no other content type that’s more authentic than UGC.
Brands are now starting to experiment and see that this performance-style content is outperforming 'editorial types' of content strategies.
Note, don’t be tempted to take a half-a** approach to your UGC strategy. Audiences will quickly sniff out the false sentiment, which could seriously damage your brand reputation.
Instead, always ensure that your UGC comes from one of three cohorts: vetted creators, your customers, brand ambassadors or employees.
People ultimately trust others, so it’s essential to think of UGC as modern-day word of mouth.
And with consumers 2.4 times more likely to view user-generated content as authentic than content created by brands, the time to invest in an authenticity-driven social marketing strategy is now.
It helps establish brand loyalty and grows the community
Utilizing user-generated content (UGC) in marketing refers to incorporating content created by creators and/or customers or followers of a brand into the brand's promotional efforts.
The idea is that by showcasing real people engaging with and supporting the brand, other potential customers will be more likely to trust and connect with the brand as well.
When done well, UGC can be a powerful tool for building brand loyalty and community.
UGC as a trusted tactic
Only 9% of Americans trust mass media “a great deal,” which is no surprise given the influx of fake news since the 2020 global pandemic.
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Brands need to work harder than ever to establish themselves as trustworthy. And with 93% of marketers agreeing that consumers trust content created by customers more than content created by brands. This signals that UGC is the perfect format for businesses to level up their trust score. It should be thoroughly tested for any brand.
Audiences turn to UGC as a trust signal, in the same way, they’d ask their friends, family, or professional network for an opinion. Over 50% of millennials base their decision to buy a product on recommendations from their family and friends, so this is where UGC can shine since it is precisely that: a personal recommendation.
Increase conversions and influence purchasing decisions
User-generated content is incredibly influential in the final stages of the buyer’s journey, where you’re looking to convert your audience and influence them into making a purchase.
UGC acts as authentic social proof that your product is worthy of buying. For example, your audience sees people just like them wearing or using your product, which influences them to decide to buy.
In some cases, it's more cost-effective than influencer marketing
Hiring macro influencers can be quite costly. When working with us, we negotiate rates on your behalf and provide affordable services that enable you to scale your media budgets profitably.
UGC is a cost-effective way to scale your performance marketing efforts and introduce a new marketing strategy to the mix (when done right).
For smaller brands or those just starting out, UGC is cheaper and easier to manage than investing in larger-scale brand awareness campaigns.
Works in harmony with social commerce
Have you heard about social commerce? It is the future of online shopping. The best part about it is that you can make purchases within a social media app without having to leave the network.
For instance, imagine scrolling through Instagram and coming across an item you want to buy. You can simply tap on it to learn more about the product, decide to buy it and complete the transaction right in the app! This is social commerce at work.
UGC and social commerce complement each other perfectly. UGC is a powerful tool for driving conversions. In fact, almost 80% of people say that UGC influences their purchasing decisions. This is why social commerce and UGC are a perfect match.
Challenges of user-generated content
Although UGC provides social proof and it can be beneficial in many ways.
But there are also some drawbacks to consider. These reasons have led some brands to either limit or entirely avoid UGC...
Despite this, having UGC usually helps brands more than it harms them. Smart brands acknowledge and learn from their mistakes and weaknesses instead of ignoring or hiding them.
However, it is essential to understand and prepare for the potential negative effects of UGC.
1. UGC can take a lot of effort to generate - time, money and team resources
2. UGC can tank a product without a proper creative approach
3. UGC content can be deemed untrustworthy when working with inexperienced agencies and/or creators
4. UGC requires attention to detail and constant iteration - if there's a lack of process, the approach is destined to fail
5. UGC needs a media buyer who can navigate the various nuances of the industry and the ability to collaborate with the creative process
Types of user-generated content
Small and big brands are currently prioritizing user-generated content as a key strategy. With various styles and formats available, it's easier to find the perfect fit for your brand.
Some of the UGC types can be the following:
Wrapping Up
Is investing in user-generated content worth it? Our answer is a resounding YES!
While there are both advantages and disadvantages to UGC, we believe that the benefits far outweigh any drawbacks.
If you're thinking about testing, optimizing or scaling UGC, please reach out. We would like to understand your current situation and your desired outcomes.
Feel free to get in touch with us for a discovery call today or if you'd like to receive a few of our case studies.
Director of UGC (Organic & Paid) @ ZeroTo1 | Founder of The Beach Picnic Co. | UGC Creator | TikTok Shop Partner, Influencer and Performance Creative Agency
1ySuch a great post! It's a reminder that UGC (when done right) establishes easier trust between customers and the brands they love :)
Shaping the Muslim Creator Economy | Helping Muslim influencers make profit and impact.
1yThank you so much!
Shaping the Muslim Creator Economy | Helping Muslim influencers make profit and impact.
1ySo much valuable information, I would love to know how you define a creative approach what are the different components of it?