Global brands like Sephora, GoPro, and Calvin Klein have had huge success with UGC. That said, you don’t need to have their massive marketing budgets to get started with this marketing strategy. In fact, it’s the affordability of UGC that’s one of the main reasons why all brands can (and should) add more of it to their marketing mix. 

What Is UGC?

User-generated content (or simply called UGC) refers to any content that’s created by a  professional content creator or a customer instead of the brand behind the product or offering. It can be photos, videos, text or reviews shared on social media platforms, blogs and/or review sites. 

Why Should Brands Use UGC?

Versatility

As the brief definition shows, UGC comes in many forms. This versatility allows brands to incorporate UGC across various marketing channels and platforms. 

For example, if your target audience is active on TikTok, Facebook, and Threads, you can use a combination of short-form, unboxing videos, static in-action product photos, and written reviews. 

Cost-effectiveness

UGC offers a cost-effective alternative to creating content from scratch. As an outside party will be creating the content instead of your own in-house team, you’ll essentially have no production costs. That alone is a huge cost-saving benefit. 

What’s more, if it’s created by customers and shared on their social media platforms, you’ll likely be able to share it for free on your own channels. Most customers will agree to brands repurposing their content as long as they’re credited for the content. 

Even if you plan to go the route of formally collaborating with a content creator or brand ambassador, you can still keep the costs down. Instead of monetary compensation, you can compensate creators with free products or a discount on their product. In fact, according to Influencer Marketing Hub’s The State of Influencer Marketing 2024: Benchmark Report, nearly half (49.7%) of brands surveyed use these two forms of compensation.

Trustworthiness

You can think of UGC as a modern version of word-of-mouth advertising. Like word of mouth, it has the power to build trust, even more so if it’s viewed as authentic. 

In fact, a study among US online shoppers found that about 40% of shoppers in their 20s and 30s searched for product recommendations online. Not only is this the type of content that they want to see, but it can also impact their purchasing choices. Another survey found that about half of US shoppers are influenced to some degree by product recommendations when it comes to buying online. 

Plus, for newer brands and products that haven’t had enough time to build brand awareness, online product recommendations can fuel discovery and actual purchases. Nearly 60% of US shoppers in their early 20s have admitted that online product recommendations have helped them to discover or buy a new product that they wouldn’t have known otherwise. 

Key Takeaways

Selling online gives brands the opportunity to reach a global audience. The challenge, though, is to show to your target audience that you’re legit when they have no way of verifying that themselves. 

Any brand that sells online needs social proof. User-generated content offers that social proof without blowing your budget. 

It’s the type of content that online shoppers want to see in their feeds. While there’s still space for branded content in your marketing strategy, the authenticity of UGC can help you to fast-track the process of building brand awareness and trust.