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Cristy Kim
Understanding UGC and Influencer Marketing: The Basics Every Brand Should Know
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In today’s fast-paced digital world, User-Generated Content (UGC) and Influencer Marketing are game-changers for brands. But what are they, and how can they help you succeed? Whether you’re a startup or a big-name brand, mastering these tools is key to a winning strategy. Let’s dive into some of the essentials every brand should know.
Quick Recap: What is UGC (User-Generated Content)?
User-Generated Content (UGC) is anything your customers create—photos, videos, reviews, or social media posts—rather than the brand itself. For example, imagine a happy customer posting an Instagram story of their morning coffee in your cafe, tagging your brand, or someone sharing a TikTok tutorial using your skincare product. These are perfect examples of authentic and relatable UGC.
When paired with influencer marketing, it’s all about influencers or their followers sharing this kind of genuine content that highlights your brand.
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What is the Premise Behind Influencer Marketing?
Influencer marketing is all about collaborating with people who have loyal, engaged followings on social media to promote your brand. Whether it’s a celebrity, a lifestyle blogger, or even a micro-influencer with a smaller audience, consumers today are more responsive to these collaborations than traditional ads.
Let’s take a look at Daniel Wellington as an example. You know those minimalist watches that were everywhere on Instagram for a while? They didn’t blow up because of TV commercials or billboards–it was actually because of influencers.
Here’s what they did: Daniel Wellington offered free products to influencers of all sizes, from big-name celebs to everyday creators. These influencers shared photos of themselves wearing the watches on their feeds with the hashtag #DWpickoftheday. Followers who saw this hashtag bought the watches themselves so that they could also get featured on the brand’s official Instagram page. This hashtag had over 62,000 posts—that’s 62,000 user-generated content that led Daniel Wellington to sell 1 million watches in the short span of 3 years. Crazy, huh!
You see, influencer marketing thrives because it’s not about hard selling—it’s about creating a relationship and engaging people so that they feel like they’re part of something. That’s the magic of it.
What is the Definition of a Rate in Influencer Marketing?
You might be wondering, “How much of my budget should go toward influencer marketing?” Most collaborations are paid through rates—what an influencer charges to promote your brand. This could be for a single Instagram post, a series of TikTok videos, or an entire campaign. Rates vary depending on factors like audience size, engagement, the type of content they create, and the platform they use.
But here’s the thing—when you’re just getting started, offering free products or services instead of monetary payment can often be an effective first step, as seen in successful campaigns like Daniel Wellington’s. You’d be surprised by how many creators are open to collaborating in exchange for trying your product and sharing honest reviews!
As your campaigns grow, you may need to transition to paying rates for influencers who align closely with your goals and audience. Here’s a quick breakdown of common payment structures:
- Per Post Rate: The cost for a single piece of content, like an Instagram post or TikTok video.
- Per Campaign Rate: A flat fee for a full campaign, which might include posts, stories, videos, or live streams.
- Performance-Based Rates: Payment tied to results, like commissions for sales or bonuses for meeting specific goals.
Remember, it’s important to openly communicate your rates with influencers. Many creators may have their own pricing structures or expectations for collaborations, so starting an honest conversation about your budget and their rates is essential. This transparency will help you set clear expectations, avoid misunderstandings, and ensure both you and the influencer feel valued.
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Why UGC and Influencer Marketing Work So Well Together
UGC and influencer marketing are great on their own, but together, they’re unbeatable. Don’t just take my word for it. Let’s take a look at the data and success stories and let them speak for themselves.
The Numbers Don’t Lie
UGC is among the most trusted forms of content online. A study by Nielsen reveals that 92% of consumers trust recommendations from people they know, and 70% trust online opinions from strangers—both of which UGC taps into (Nielsen, 2023).
As for influencer marketing, its growth is equally jaw-dropping. According to Insider Intelligence, the industry reached $21.1 billion in 2023, and a survey from Influencer Marketing Hub found that 61% of consumers are likely to trust recommendations made by influencers they follow (Insider Intelligence, 2023; Influencer Marketing Hub, 2023).
I know right—these stats are mindblowing. Now, let’s dive into a real-world example that shows just how powerful these strategies can be.
A Real-World Example: Airbnb's #LiveThere Campaign
One standout example of successfully combining UGC and influencer marketing is Airbnb's #LiveThere campaign. Airbnb partnered with influencers who shared personalized travel stories while encouraging followers to post their own experiences with the hashtag #LiveThere.
The results were impressive: Brand awareness hit an all-time high with a 9% increase, social media engagement grew by 15%, Airbnb also saw a 20% boost in bookings compared to previous marketing campaigns.
This campaign is a perfect example of how combining the credibility of influencers with the relatability of UGC drove both engagement and sales.
How to Get Started
I know that was a lot of information. So, here’s a step-by-step guide to bringing UGC and influencer marketing together for your brand:
- Choose the Right Influencers:
Start by identifying influencers whose audience aligns with your target market. Micro-influencers can be a great starting point because they often have highly engaged and loyal followers. - Offer a Clear Value Exchange:
Reach out with a clear pitch. Offer your products for free in exchange for an honest review, or propose a paid collaboration. Be clear about what you’re looking for—a single post, a series of videos, or a longer campaign—and allow room for their creativity. - Incorporate UGC-Friendly Campaigns:
Make it easy for influencers and their followers to create content. For example, host a giveaway where participants submit UGC to enter. - Put UGC to Work:
Don’t just let all that great content sit on social media. Use it! Share UGC on your brand’s Instagram feed, embed it on your website, or feature it in ads. - Track and Learn:
Make sure to measure the performance of the influencer content and the UGC it inspires. Monitor engagement, hashtag usage, and any sales the campaign generates. Use this data to refine future strategies.
Pro Tip: experiment, stay consistent, and seek authenticity.
Embrace UGC and Influencer Marketing
In today’s market, UGC and influencer marketing are not just optional—they’re essential to staying competitive. Therefore, you should make them core elements of your marketing strategy. But don’t stress! If you’ve made it this far, you’re already well on your way.
I hope this article has inspired you and equipped you with the tools to dive confidently into the world of UGC and influencer marketing. Now it’s your turn to go out there and make your brand shine! You’ve got this!