A historical analysis of the power of User Generated Content (UGC) in digital advertising. Today, authentic video materials and demonstrations of customer experiences in Meta and Google campaigns deliver significantly higher conversions than sterile studio footage. See our Meta Ads and Google Ads services.
User Generated Content (UGC) refers to any form of content created by the users of a brand or product. The trend over recent years shows that this is highly effective content, and it is increasingly being used in digital marketing campaigns, including targeted Meta Ads campaigns and Google Ads - both in banners and video advertisements.
User Generated Content (UGC) removes consumer skepticism toward traditional advertising by showcasing real-life product or service experiences. When combined with targeted social media campaigns, it significantly reduces Customer Acquisition Cost (CAC) and increases ad dwell time.
User generated content can be any type of media - typically an image, meme, video, social media post, or product review. Several studies over the last few years have revealed that customers trust recommendations and experiences from friends, acquaintances, and influencers more than traditional ads. Therefore, a potential customer needs a real person with a genuine, natural experience rather than an actor in a commercial. It is no surprise that this type of content, when integrated into advertising, is becoming increasingly popular.
Why is UGC becoming increasingly popular?
People increasingly value authenticity and naturalness, simply because they know how advertisements are made and that anything can be presented much better than it is in reality.
In fact, we have trusted our inner circle - family members, relatives, friends, and acquaintances - for centuries. We ask them for advice before buying something, we ask about their experience with a service, and we definitely use this information when making a purchase decision.
However, it is only recently that advertisers have started using this in ads, as it simply was not the norm before. The stereotype of a "good ad" was a perfect creative solution: artistic, featuring good actors or models, and "correct" ad copy. And it worked. But times are changing, and advertising has found a new direction for progress.
User generated content is authentic
In a study conducted by Cohn & Wolfe, 63% of consumers stated that they would rather make a purchase from a company they perceive as more authentic compared to its competitors.
Authenticity is becoming crucial in today's digital world. Customers are no longer passive consumers driven by television commercials and classic banners.
But how do they choose who to buy from? Consumers choose brands that share their values, brands they can connect with on a human level, and brands that "hook" them with something real.
How to get User Generated Content (UGC)?
User generated content can be used throughout the entire marketing funnel, from the beginning (brand awareness) to the end (post-purchase campaigns). Therefore, it is important to understand how you will acquire UGC from the start.
Since UGC comes from customers, you need to find their content and organize it to select the best pieces based on your needs. You can simply find UGC on social media (Facebook, Instagram, YouTube, TikTok, Pinterest) and various other resources (forums, review portals, etc.). You can also run a contest where customers can submit their content to the brand. Reaching an agreement with the customer regarding the use of their content in ads is a matter of logistics - compensation, free products, or other bonuses.
Frequently Asked Questions about User Generated Content (UGC)
Why does UGC outperform expensive studio ads?
People on social media instinctively recognize and ignore polished corporate commercials. Authentic smartphone video builds trust and the feeling that a fellow customer is talking about the product.
How can a company encourage customers to create and submit their content?
Offer discounts for future purchases, run contests with specific hashtags, or partner with micro-influencers in your industry.
In which advertising channels does the UGC format show the highest return?
The highest efficiency is observed in Instagram Reels, TikTok, Facebook campaigns, and YouTube Shorts formats.
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