Why User Generated Content Marketing is Winning in the World of Digital Marketing

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User Generated Content Marketing

Content related to businesses and brands is not only created by businesses themselves anymore. Customers are now engaging with brands on a deeper level by helping construct a brand’s identity, presence, and even reputation. This transformation is attributed to one of the greatest digital marketing strategies in the last few years—user-generated content marketing.

Content created by users, whether it is a positive testimonial, a tagged Instagram picture, or an unboxing video of a product are changing the dynamics between brands and their customers. 

Apart from serving as an effective digital marketing tool to boost traffic and conversions, UGC also meets the requirements of today’s consumers who seek honesty and connection.

Table of Contents

What is User Generated Content?

As the name suggests, user generated content is any type of content produced by users of the brand rather than the brand itself. Examples include reviews, testimonials, blog entries, photos, videos, podcasts, social media posts, and even Q&A threads. It is content made by ordinary people based on their real experiences.

Consider an individual posting a photo of themselves in new branded sneakers, or a YouTuber providing a review of the latest smartphone. These endorsements are quite powerful and in some instances more impactful than traditional advertising.

Examples of User Generated Content in Action

  • Coca Cola’s ‘Share a Coke; promotional campaign asked people to submit photos with coke bottles that had their names on it which helped spur sales by 2% a decade after sales experienced dwindling numbers.
  • Apple used the hashtag #ShotOniPhone on social media and displayed stunning iPhone pictures taken by users on billboards, enhancing the level of pride amongst Apple users while also making the campaign feel authentic.
  • GoPro relies greatly on user generated content for videos, showcasing videos filmed with their cameras by users and increasing the demand for their products while also enhancing the sense of community.

 

These campaigns prove that user-generated content marketing is not a trend — it’s a strategic, sustainable approach.

Why User Generated Content is Crucial to Digital Success

UGC is rapidly becoming a cornerstone of modern digital marketing strategy. But why is it so effective? 

Let’s find that out.

User Generated Content Marketing

 

1. Social Proof Boosts Conversion Rate

Social proof is an example of human behavior that demonstrates how individuals mimic the behavior of others in hopes of adopting correct behavior. Nielsen reports indicate that 92% of people are prone to trust content created by users over traditional advertising, especially when it comes to social media.

User-generated content serves as assurance, in visual, verbal, or written form, that encourages potential users to purchase from a brand, confident that the brand does deliver what it promises. 

Moreover, UGC acts as a smoother vehicle for frictionless navigation along the buying journey. As reported by Stackla, 79% of people noted that UGC highly influenced their purchasing decisions, whereas only 13% considered branded content relevant.

Example: Fitness influencers who share their results from using a workout app attract hundreds to give the app a shot. Such trust cannot be instilled via ads.

2. It’s Cost-Effective and Scalable

Branded content is often expensive and time consuming to produce. On the other hand, UGC is abundant, not to mention free (usually but not always), on countless platforms like TikTok and Instagram Reels. 

Leveraging that free content allows brands to scale their marketing without draining their resources, leaving the branded content creation to the communities.

Stat: Social Media Today states that brands’ engagement rates increase by 28% when they replace branded advertisements with social media ads that feature user-generated content.

3. Enhances Discoverability and SEO

From the semantic SEO aspect, UGC usually consists of long tail keywords and phrases that people actually use to search. Reviews and forums are treasure chests of actual keyword variations.

A consumer written review such as, “This is the best eco-friendly laptop backpack for college students,” contains valuable keywords that if properly indexed by search engines, can significantly boost traffic.

Adding more UGC, especially on blogs or product pages, can enhance SEO ranking, especially local SEO alongside the retail metrics of time-on-site and bounce rates, which tend to measure the health of a brand’s digital footprint.

Advantages of Crafting a Solid User Generated Content Strategy

An effective campaign is guided by a strategic approach unlike scattered content that lacks direction. Plenty of planning, consistency, and community participation is what goes into good user generated content strategy.

1. Fosters Real Brand Authenticity

Today’s consumers can easily differentiate between a brand that’s trying too hard to sell itself through polished brand narratives. UGC delivers real experiences which can be very raw. This form of authenticity gives a brand voice that earns trust.

For instance, Airbnb leverages the credibility of its travelers by showcasing their unfiltered photos and stories, a trust-based marketing strategy aimed at travelers that hotel chains cannot compete with.

2. Boosts Brand Loyalty and Engagement

Encouraging content creators motivates them to form a sense of belonging. By sharing, appreciating, and responding to the content created, brands can create a loyal community of advocates.

Stat: Brands that boost UGC use within their Instagram strategy experience 4.5% increase in conversion rates (Yotpo).

Encouraging hashtags, running challenges, and featuring customer stories are all effective components of an engagement-first user generated content strategy.

3. Fosters a Two-Way Relationship

Unlike traditional advertisements, UGC encourages dialogue. It turns customers into active participants in the branding process. With UGC, customers have a say and their contributions shape the story of the brand. This strengthens the emotional bond to the brand and increases retention and brand love. It is also one of the practices companies with best brand awareness engage in.

Ideas for User Generated Content Encouragement

If your brand has not been actively collecting UGC, now is the perfect time to start. Use the following pointers to get your campaign running:

User Generated Content Marketing

Branded Hashtag Campaigns

Develop a catchy, simple, and memorable campaign to encourage user submissions of content through a specific hashtag. It should be easy and relevant.

Calvin Klein’s #MyCalvins has provided the brand with millions of content submissions while empowering the brand’s culturally relevant and fashion-forward identity.

Campaigns With Contests And Giveaways

Encourage users to creatively participate by offering incentives, such as discounts, gift cards, or features that promote their names. 

Set clear rules around entry to avoid confusion and reduce clutter.

Team Up With Micro-Influencers

While celebrity influencers can be costly, micro-influencers (1,000 to 100,000 followers) often have highly engaged communities. 

Work with micro influencers to tap into their loyal audience and enhance organic user-generated content creation.

How Is User Generated Content Most Effectively Applied?

The scope of user generated content goes well beyond social media.

Consider implementing these elements in your content marketing strategy:

  • Product Pages: Customer photos and reviews.
  • Email Marketing: Highlighted user posts in newsletters.
  • Ads: Real-life testimonials and pictures.
  • Landing Pages: Social proof for higher conversion.
  • In-Store Displays: Digital UGC in brick and mortar locations.

 

Stat: 64% of UGC solicitation respondents reported featuring UGC on eCommerce product pages significantly enhance the conversion rates (Photoslurp).

Legal & Ethical Considerations

UGC sharing requires requesting permission. This can be done by sending a message or a comment asking for consent, or employing rights management systems. The poster’s name must be attributed, and unless given express permission, do not edit the work. This strategy upholds ethical standards, but this also builds goodwill within your community.

The future marketing potential of user generated content is bright. With the rise of TikTok, BeReal, Threads, and increasing brand skepticism, UGC becomes a focal point of your digital marketing strategy.

Undoubtedly, upcoming developments such as augmented reality (AR) and artificial intelligence (AI) will enhance the creation and utilization of UGC. This could be from virtual try-ons to content personalization in real-time.

Globally, the content marketing industry is estimated to grow by $487.24 billion by the year 2025, according to Grand View Research. This growth is largely due to the expected increase in UGC spending.

Conclusion: Incorporate User Generated Content Marketing in Your Strategy

Of all modern marketing strategies, content marketing seems to be the newest, and in many cases, the most humane, straightforward, and scalable one. By incorporating user generated content, brands increase their authenticity, engagement rates, and even improve their SEO. All of this requires a strong forward-thinking user/content generated strategy.

Once you start formulating your future steps in digital marketing, remember that trust is the most powerful marketing tool. By allowing the audience to tell their brand stories, you make them a part of your community.

But here’s the catch: user-generated content marketing works like a charm only when you have an expert digital marketing agency by your side. ITechSole is a trusted digital marketing agency specializing in crafting viable and customized digital marketing plans and strategies. Get in touch with our team today to get tailored user generated content marketing services.

FAQs

What does UGC refer to in marketing?

UGC stands for user-generated content. In marketing, it refers to all types of content including reviews, text, videos, images and articles that the users of a certain product/ service have created themselves, and not the brand. It is a popular and effective marketing approach.

UGC is generally free content that the users and customers of a certain brand create themselves. However, now that the niche is becoming saturated, and because UGC does so well, brands often pay famous influencers to create user-generated content for them. User-generated content marketing is now commonly used.

To create an excellent UGC campaign that creates a buzz about your offering, you need to first plan the entire campaign. Define its goals and objectives. Next, work with a strategist to design, execute and monitor the campaign.

UGC can be in a variety of formats including blogs, podcasts, reviews, testimonials, images, live streams and videos. Coca-Cola’s famous ‘Share a Coke’ and Lululemon’s ‘#TheSweatLife’ campaigns are apt examples of user generated content marketing.

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