User Generated Content: The New Influencer Marketing
As the use of social media and technology continues to grow, we know that marketing and public relations strategies will need to adapt. Whereas influencer marketing is between an influencer (who has built a wide audience) and the company, user-generated content creation is between real customers and the company. This work can also come from employees of the company or brand loyalists. Not only can UGC be much more cost effective than influencer marketing, but it allows you to further connect with your audience. Let’s talk about how UGC became so popular and why brands should be capitalizing on it.
How Did UGC Start?
Let’s start at the beginning when user-generated content began. UGC can be traced back to the making of the Oxford Dictionary, where the dictionary was created through public contribution. IMDb originally started as an online bulletin board for users to accumulate information. Users could search a database of user-selected movies. If we look at Quora, for example, the user-generated content creator would be the responses that a question receives. As for a real date that UGC was created, we can assume that it’s been around for as long as humans could communicate (that is, if you have purchased something via word-of-mouth from friends and family).
What Are the Benefits of UGC?
In an age where everyone has access to the Internet from their back pocket, user-generated content can appear anywhere. On Instagram, TikTok, YouTube, website reviews, etc. If we compare how much a company could spend on an influencer v.s. a UGC creator, it is much more cost-effective. You can run into fees over a million dollars with influencers. While most User-Generated Content is created for free, it’s becoming more common for UGC creators to charge for their deliverables and content.
The brand Aerie, a women’s clothing and intimates store, utilizes UGC well within their social media. Their movement, #AerieREAL, is all about creating awareness on the retouching of photos. Aerie encourages fans to post an unedited, unfiltered photo using their hashtag, in hopes of empowering customers and boosting their self-esteem. Since the Aerie REAL campaign launched in 2015, it has contributed to nearly two/thirds of American Eagle’s incremental revenue. As of October 31, 2022, American Eagle’s revenue was up to 1.241 billion.
UGC influences consumers more than influencers or brand advertisements. User-generated content impacts almost 80 percent of consumers, and 50 percent of millennials tend to be more influenced to buy something if the recommendation came from family and friends. Furthermore, in the age of social commerce, it is much easier to “influence” a consumer via social media. User-generated content also proves the brand to have more authenticity. This can benefit a new small business since consumers are creating marketing content that they prefer to see.
The Future of UGC
As social media marketing phases from polished content to more personal storytelling content, UGC is quickly becoming a unique opportunity that brands can capitalize on. Fifty-six percent of consumers state that they want to see more user-generated content from brands. Social media apps are going to continue getting saturated with content. This method of marketing will allow companies to display their authenticity and reach their targeted audience.
User-generated content is a surefire way to connect to your audience through your business. Although it has been around for a long time, the use of UGC is continually rising. Keep up with the pace of modern marketing and don’t be afraid to give user-generated content a try.
About Cassidy
Cassidy is a junior from the Upper Peninsula of Michigan, studying Advertising and Public Relations. She is currently a Marketing Intern for ExpressU, an online trendy clothing boutique, and a Student Assistant for the Seidman Advising Office at GVSU. Cassidy will be starting as an Account Executive for GrandPR. This is her first year participating in GVPRSSA and GrandPR. The field of PR that interests her the most is Influencer Relations and Social Media Management. Upon graduation, she hopes to work for a cosmetics company, and possibly start her own!