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What is UGC? Why is user-generated content profitable?

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What is UGC? Why is user-generated content profitable?

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In the past, in the world of marketing, the advertiser spoke and the audience listened. Today, the relationship between seller and buyer has changed dramatically. Thanks to the internet, we've said goodbye to imbalanced communication patterns. Monologues have been replaced by dialogues, and what the customer says has become sacred. Why? Because user-generated content pays off. What exactly is it and how can you use this tool in your marketing strategy? Learn more.

What is User Generated Content?

This content is voluntarily created by users, not brands. It can take many forms: from various types of text, to photos, to videos. According to the OECD definition , it must be at least somewhat creative. And… that's pretty much it for the concept of User Generated Content (UGC). As you can see, it's a very broad definition.

What forms can UGC take?

User-generated content can take many forms. The most common include:

  • social media posts – e.g. comments under brand posts on their fan pages, reviews or creative responses to marketing communications,
  • entries on internet forums,
  • reviews on opinion sites,
  • vlogs,
  • blog entries touching on topics related to a given brand.

These can be all kinds of forms of expression of Internet users on the web that are in some way related to brand communication.

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Why is User Generated Content profitable?

Think for a moment: how do you make purchasing decisions? What resonates with you more: an ad promising product X is the best in the world? Or perhaps a user comment on a brand's Facebook page or review site, honestly pointing out the pros and cons of a given solution? Which is more credible to you? What kind of content are you looking for? That's why UGC is so important. 

Below I present the most important advantages of this type of content.

  1. Credibility

Nielsen research shows that 92% of people are willing to believe an opinion they hear from someone they know, and a staggering 70% consider online reviews credible . What does this mean? Authentic messaging from a "normal user," not a marketer, is much more credible than advertising.

  1. Naturalness

Who still believes that advertisements present a true picture of reality? Traditional advertisements are widely considered saccharine and exaggerate the benefits of products. It's no wonder—it's part of their "poetics." But what about authenticity? This is much more pronounced in reviews and other user-generated content about products.

Hence the popularity of "expectations vs. reality" photo comparisons, which compare photos from promotional materials with those taken after purchasing a product (e.g., a hamburger at a chain store or clothes online). Hence the growing reach of review blogs and YouTube channels.

  1. Huge influence on customers' purchasing decisions

User-generated content can be the proverbial final straw—the element that pushes a customer toward finalizing a transaction. This is highly likely, especially if they belong to the brand's target audience and are initially interested in a given product. Research also confirms this— a staggering 80% of respondents agree that UGC has a significant impact on purchasing decisions.

  1. Support for image-building activities

UGC can fulfill all the functions associated with building a brand's image – it informs about its existence, generates interest in products, creates positive associations, and builds a strong bond between the consumer and the company. These relationships aren't purely "business-related" – especially since much user-generated content is driven by emotions (both positive and negative!). Therefore, they build long-term engagement.

  1. The foundation of inbound marketing

…or "inbound marketing"—a model in which customers come to a company on their own and create buzz. This is a much more effective way to build a loyal customer base—one that returns time and again, attracting new customers.

  1. Relatively low costs

In the case of UCG, it's difficult to clearly estimate the expenses necessary to generate interest in products and the willingness to share related content. Coca-Cola, for example, incurred different expenses when creating beverage packaging with personalized labels, which quickly became online and offline stars, and a company running a simple Instagram contest incurred different expenses. One thing is certain: a skillfully (and sincerely!) cast line will generate a response and, in the short or long term, generate profits.

  1. Strengthening SEO activities

In the world of SEO, "content is king." However, it's not just any content, but content that provides real value to users. Google algorithms no longer focus solely on the number of keyword repetitions in content. While that's still important, it's not the most important factor. What matters now is the naturalness, user-friendliness, and usefulness of the content. Therefore, if, for example, users post links to a given brand's products on their social media profiles or blogs, the chances of a higher ranking increase significantly, while simultaneously reducing the cost of website SEO.

  1. An excellent source of feedback

The goal of every company is to create products that customers in a specific segment will eagerly purchase. It's not you, but your audience who knows what they expect. Sure, you can try to create their needs and point to available solutions. But you also need to listen to the feedback you receive, not just the praise you receive, but especially the criticism. UGC is a good source of such information. Often, it's in comments and reviews that you can find valuable suggestions that allow you to change your strategy for the better, both for your customers and for the company.

This short list of benefits that can be derived from User Generated Content already shows that it is worth taking care of its creation.

How to build User Generated Content?

At first glance, this question—in the context of the definition of UGC—may seem odd. After all, it's about content created by users themselves, right? Yes, but... not entirely. You need to create an atmosphere that encourages the sharing of impressions/experiences and thoughts.

Think for a moment: what products would you be willing to tell your friends about? What would you recommend to them? In what situations would you be willing to take the time to write a review of a hotel you've stayed at? These experiences must evoke specific emotions.

Also, remember that the group of people who are willing to create UGC is very diverse. There will be those who share only negative feelings – just to complain – as well as those who want to share their assessment "with the whole world." There will also be those who simply offer advice, for example, in a Facebook group or on a topical forum. Some of these individuals can be encouraged to create UGC, while others will be motivated by their own initiative.

But how can you influence the frequency of UGC generation?

  1. Social media competitions

It's a simple way to increase brand buzz. Run a contest for users, offering them valuable prizes, for example, for creating a short post related to your products. You can also reward them for writing the most interesting review, creating a photo related to a specific topic, a short story, a poem… The more creativity you unleash, the better the entertainment. Sometimes the opportunity to read and see other people's products is a greater reward than the material rewards!

  1. Encouragement to leave a review

Until recently, this was primarily a solution recommended for online stores – where customer reviews have long been considered more important than the lowest prices. Today, however, thanks to the way Google's review system works, online users are seeking reviews for almost everything. From restaurants and bars, to entertainment venues, offices, shops, and even tourist destinations. Therefore, it's worth encouraging your customers to leave reviews . How? You can simply ask for them – for example, by handing out a flyer encouraging them to leave a rating or sending an email with such a suggestion. You can also offer an additional incentive, such as a discount on future purchases.

Warning! Don't reward only those who leave the highest rating and rave reviews! Let's repeat: honesty and authenticity are the secret to the power of User Generated Content.

  1. A provocative post on social media

If you have a large enough social media following, asking an interesting, provocative question is a great way to generate a ton of user-generated content.

Sometimes a simple question about their day is enough. In other situations, a serious inquiry about their opinion on a matter related to the brand's activities is enough. But be careful! Such discussions can become heated! That's why moderation is necessary . Don't forget: "moderation" doesn't mean deleting unfavorable comments, but rather, for example, reacting to hate speech and answering questions directed at you!

  1. Interacting on social media channels

Your social media profiles may feature comments about experiences with your brand or a specific situation that triggered a user's emotions. These should not be left unanswered, just like comments directly related to the post.

What do responses that generate UGC look like? They contain open-ended questions – ask questions and encourage your audience to "open up." It's also worth adopting a more relaxed communication style – especially when responding to negative comments. If you approach them with a pinch of salt, your responses will automatically become a topic of discussion. And that's the point!

What to avoid when creating UGC?

There are many ways you can inspire your audience to create content related to your brand. Remember! This must be done thoughtfully. Avoid:

  • excessive encouragement to comment and share – if it appears too often and too intrusively, it will discourage rather than encourage creativity and interaction,
  • Artificial "crowd building" – yes, you can consider subtle discussion moderation, but it's not worth doing so incognito. It's definitely better to communicate openly and honestly, on behalf of the brand (or through its ambassadors) than to pretend to be ordinary users. False notes will be quickly detected, and the action will lead to defeat, not victory.
  • Publishing UGC without the creator's consent – ​​for example, if you receive an email with a positive review of a company, ask if you can do so before publishing it. The same applies to creative works submitted to competitions and other company events. Ask for permission to publish, preferably in writing, and only then boast about what you received.
  • creating campaigns aimed at building User Generated Content among people outside your target group and in a style that does not match your brand – the ultimate goal of such communication is, after all, building a specific image among specific recipients.

If you'd like to learn more about UGC and other inbound marketing tools and are wondering how to implement them in practice, let's talk! Contact us now!

Summary

The above article covers the following topics:

  • UGC in a Nutshell: Definition and Most Popular Forms of This Content Type
  • How does User Generated Content increase sales?