UGC is User-Generated Content which is created by individuals. The content can be in a variety of forms such as text, photos, videos or podcasts. Here are the most common types of UGC:
Reviews are the most common form of UGC. Reviews can be given as star ratings, comments, pictures and videos.
While reviews are a quick overview, testimonials are a longer, more in depth story about a customer’s experience. These are usually inspirational stories that go into detail of before and after the use of a product.
Subscription companies offer customers more than just a product, but the experience of opening a gift and the element of surprise. Audience members enjoy watching unboxing videos as a way to discover new products. Another reason for the popularity of unboxing videos is for potential buyers to verify the quality of a product before purchasing it themselves.
Most of the time UGC isn’t centered around a product but is just created for pure fun – like this Mission Impawsible TikTok.
Influencer-Generated Content is motivated by material compensation such as money or services. When an Influencer is being paid to advertise a product, their opinion becomes biased and less trust-worthy. According to a Stackla report, “UGC was shown to be 8.7x more impactful than influencer content and 6.6x more influential than branded content in consumers’ eyes – with 79% of people saying user-generating content highly impacts their purchasing decisions.”
With shopping moving online and there being more options to choose from, consumers look at brand trust to help them make decisions. A potential buyer wants reassurance they are getting a quality product and superior service. User-generated content such as reviews and unboxings help buyers make decisions, as well as helps online stores increase sales. Below are a few examples of the benefits of UGC.
User-Generated Content is the most trustworthy form of marketing available. In Nielsen’s 2021 Annual Marketing Report, 89% of consumers trust recommendations from people they know and 71% trust opinions from influencers. Comparatively, branded content such as online banner ads and ads on search engine results were less likely to be trusted.
Humans have a need to feel seen and heard. When customers feel recognized and validated on an individual level by a company, they form a loyalty to the brand. “43% of consumers say they would be more likely to continue engaging with and purchasing from a brand if it shared their photos or videos” (2021, Stackla).
When a customer views authentic reviews, they become more confident in their decision, leading to higher sales and less returns.
Search engines look for specific keywords associated with websites. As users leave reviews and write about the brand, those keywords naturally increase the SEO score of an online store. Additionally, when users post about their experience with a product on social media, it leads to greater brand discovery. Smartly.io reported, “82% of Gen Z consumers use social media as a way of finding new brands.”
As user-generated content is voluntarily created, it is free marketing for a company.
The top social media sites of 2022 are:
Reviews are also found on Amazon, Yelp and Google.
The first way to know if you have UGC is to search online. As UGC is created without incentives, there might already be content on your brand out there. However, there are ways to encourage consumers to create content without putting pressure on them.
Follow up on a sale with a personalized message to your customer. Get creative in asking them to leave reviews and unboxing videos.
Creating a hashtag unique to your brand will encourage social sharing. Fashion label ASOS created #AsSeenOnMe for customers to post photos of themselves in ASOS’s clothing.
Tiktok challenges can go viral within minutes. Create a specific task based on your product and share it with your audience. An example of a branded TikTok challenge was Colgate’s #MakeMomSmile campaign.
While influencer marketing is not UGC, a sponsored ad by an influencer could inspire their followers to do the same.
Consumers actively seek out user-generated content such as reviews, unboxings and product displays to make decisions. When you put UGC directly on your product page, you are helping the buyer make a decision. Stackla reported the following:
Numerous studies show that user-generated content has an influence on purchasing decisions. Add UGC directly to your online store to have an immediate impact on sales.
1. TikTok Gallery
2. Shoppable Videos
Feature customers using your product on your homepage. With shoppable video galleries, customers can click-to-purchase from inside your video.
3. Unboxing Carousel
Display customer unboxings directly on your landing page to showcase your product.
4. Social Media Photos
Gather photos in one place on your website to show testimonials from your customers. Common places to display social media photos are on the landing page, product page and in the footer of the entire website.
5. Testimonials Page
Having a page dedicated to clients sharing their stories can inspire future buyers to join the community.
Nielsen. (2022). Global Annual Marketing Report 2022.https://annualmarketingreport.nielsen.com/wp-content/uploads/sites/16/pdf/full_report_1666535864_1744248833.pdf
IAB. (2019, May). User-Generated Content for Marketing and Advertising Purposes.https://www.iab.com/wp-content/uploads/2019/05/IAB-UGC-for-Marketing-and-Advertising-FINAL-May-2019-2.pdf
Stackla. (2021, August). Post-Pandemic Shifts in Consumer Shopping Habits: Authenticity, Personalization and the Power of UGC.https://www.nosto.com/wp-content/uploads/2021/08/Stackla-Post-Pandemic-Shifts-in-Consumer-Shopping-Habits-Data-Report_FINAL_compressed.pdf
Smartly.io. (2022, May). How to Engage Gen Z on Social Media.https://www.smartly.io/ebooks/how-to-engage-gen-z-on-social-media
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