February 2020

Did you know that ads based on User-Generated Content have 4 times higher click-through rates on average and half the cost-per-click rates than average ads? However, only 16% of brands have a clearly-defined strategy regarding UGC.

What is User-Generated Content? Any form of content – from written reviews to photos and videos – that are created by unpaid users about a brand or a product. Thanks to the increasingly sophisticated social and e-commerce landscapes, UGC is more important than ever in 2020. Here’s why:

1. Authenticity drives purchases

85% of consumers find UGC more influential than brand content, and more than 60% of people acknowledge that family and friends have an impact on them when making purchase decisions. According to another study, retailers in all industries reported that their conversion rates increased when incorporating UGC. Because Influencer Marketing is increasingly sophisticated, consumers are also gaining awareness of authenticity issues. UGC strategy should not be left out of the discussion concerning Influencer Marketing to ensure your brand stays genuine to its customers.

 

2. UGC boosts engagement and brand loyalty

UGC is a great way to boost consumer engagement and brand loyalty. This might sound contradictory but asking your consumers to do something for you would actually make them love you more! A good UGC strategy also helps cultivate a community around your brand, and the members can become advocates for your products. Surprisingly, over 50% of consumers want their favorite brands to tell them what type of content to create. As you can see, customers are eager to share content for the brands they love!

 

3. UGC complements your social listening strategy

Social Listening is incredibly valuable as it allows the marketers to learn what people are saying about your brand. Social Listening is not confined to just user-generated content of your brand, but it includes all mentions on social media platforms. UGC helps to expand the amount of data and, therefore, provides additional insights about a group of people who are genuinely invested in your brand. Want to launch your products in a new market? A Social Listening audit will give you valuable information about everything people are saying about your brand and help you be prepared for any cultural differences!

 

4. Live videos are becoming increasingly popular

Videos have long been an important strategic tool for brands. Today, Millennials and Gen Z are well-versed in producing high quality videos as well as photos and reviews. In fact, Millennial consumers are the biggest content contributors, producing over 70% of all UGC. With apps like Snapchat, TikTok and Instagram being the perfect platforms for UGC, you brand can’t miss this opportunity.

 

5. The merge between social media and e-commerce: social commerce

The rise of apps like Little Red Book (Xiao Hong Shu) demonstrates how powerful UGC’s can facilitate transactions online and drive e-commerce decisions. Depop, a social shopping app which boasts 13 million users, 90% of which are under 25 years old, is another successful Social Commerce platform. Instagram is now also adding more and more new features like shoppable photos and videos. All of these trends indicate that the future of e-commerce is inseparable from social elements, and brands need to have a clear strategy to keep themselves relative.

If you’re interested in developing UGC strategy or setting up a Social Listening routine for your brand, don’t hesitate to contact our team! We have more than 20 years of expertise in helping clients around the world to better understand their markets culturally and digitally.