Earned media is an article or other form of public endorsement of a brand or company that wasn’t sponsored by that brand or company. 92% of consumers say they trust earned media, including recommendations from friends and family, more than any other form of advertising.
Based on this data, user-generated content, or UGC, is a fail-safe way to win your target customers and stay ahead of the competition. However, some marketers still aren’t maximising UGC because they don’t know where to begin.
What is User-Generated Content?
User-generated content (UGC) is a content marketing strategy that involves any form of content created and shared by real customers rather than the brand itself. Examples of user-generated content include videos, reviews and testimonials on online shopping sites, photos, blogs, and social media posts.
There are two main types of UGC: organic UGC and paid UGC.
Organic UGCs are types of content that actual customers voluntarily share without any directives or incentives from the brand. Since users generate this type of content based on their genuine experiences, emotions, and opinions, organic UGC is considered to be more genuine, trustworthy, and relatable to other potential customers.
Paid UGC refers to user-generated content in which brands offer rewards, discounts, free products, sponsorships, or other forms of compensation to users in exchange for creating content that promotes the brand and its products. Paid UGC is made by UGC creators and influencers. The main difference is that UGC creators deliver it to businesses without being required to share it on their personal channels, although some UGC agreements may include this option for an additional fee. While with influencers, the company compensates them for the content and the exposure to the influencer’s audiences.
The Benefits of UGC in Business
UGC builds trust and credibility
UGC provides raw perspectives and genuine experiences. This authenticity deeply resonates with other users. In fact, a survey conducted in 2021 underscored the authenticity of UGC, with nearly 80% of respondents indicating that it significantly impacts their buying choices. This makes UGC 6.6 times more influential than branded content.
UGC cultivates brand loyalty
Unlike other traditional advertising approaches that offer one-way communication between the brand and its audiences, UGC opens up conversations and promotes active participation from customers. This level of brand interaction strengthens audience-business relationships, thus enhancing brand loyalty.
UGC is cost-effective
When real users create content, they’re doing their share of the advertising work for you for free. This is way cheaper than spending thousands on paid online advertising and investing in production costs associated with creating your own content.
UGC helps with search engine optimisation
Websites that incorporate UGC tend to rank higher in search engine results pages (SERPs) due to the increased relevance and engagement associated with user-generated content. Moreover, UGC encourages user interaction and social sharing on platforms, leading to backlinks and social signals that further enhance a website’s SEO performance.
UGC improves return on investment
Word of mouth has long been recognised as a powerful marketing tool, with studies showing that 90% of individuals are significantly more inclined to trust a brand recommendation, even if it comes from someone they don’t know personally. UGC is the word-of-mouth marketing of today’s digital age. Platforms like Instagram, YouTube, Twitter, and TikTok have become hubs for customers to share their experiences with various brands. By posting about their interactions, purchases, and opinions on these platforms, users employ a substantial influence on the purchasing decisions of their followers, thus enabling the brand to enhance their ROI.
Best and Ethical Practices When Publishing User-Generated Content
- Pay attention to customer trends to get insights into what types of content, topics, and formats would resonate with them.
- Come up with games and challenges that both excite and encourage users to be more creative.
- Credit back when reposting by tagging the original creator of the post. Tagging the original publisher ensures that the content is properly attributed, avoiding any potential issues of copyright infringement or plagiarism. Moreover, tagged posts often enjoy increased visibility, as they appear not only on the brand’s account but also on the account being tagged. This amplifies the reach of the content, exposing it to a wider audience and potentially attracting new followers or customers.
- Only repost content if you have been tagged or mentioned by the original creator or if your branded hashtag has been used. By adhering to these guidelines, you demonstrate respect for the intellectual property rights of content creators and foster a positive relationship with your followers.