Is Your Business Missing Out on This Marketing Craze?

Exploring the Power of User-Generated Content and its Effects on Sales

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By now, we have all seen videos of people sharing their experiences with a product. Whether it’s a review, unpacking, or a before-and-after video, all of these can be categorized under the term user-generated content.

What exactly is user-generated content (also known as UGC or consumer-generated content) and how could your business benefit from it? UGC refers to content related to your brand that’s created by someone who’s not an official representative of your business. It could be a social media update, a video, a podcast, or anything in between.

Today we are looking at user-generated short-form videos created for social media platforms, mainly Instagram, Facebook, and TikTok since these are the most popular apps where UGC marketing is being implemented.

UGC is quickly becoming one of the most beneficial marketing tactics generating tons of revenue with never-before-seen ROI-s. Right now, most of the UGC is made by customers whose main purpose is not marketing the products they have bought but instead sharing their joy for the purchase. For brands and businesses, this is essentially free marketing. That said, not every customer-generated video is done to show appreciation for the bought item. These could also be critical reviews.

Marketers, take note: acknowledging market movements and seeing which types of videos are currently creating the most buzz is essential in making the most out of today’s digital landscape.

Okay, so.. Someone just bought my product and made a video of how good it is. Should I just let things take their course and hope for more customers to post videos of my product? Au contraire.

We are seeing a great opportunity here for marketers to get their heads in the game. Instead of purely relying on customers to create content, we could start systematically producing ads that look like UGC. By understanding your audience, their pain points, and purchase-making decisions, we could create high-converting videos with relatively small budgets.

Here are some of the benefits of UGC-type videos:

  1. Reflecting reality. These videos place your product in real life environment as opposed to studio photography. This simplifies the purchasing decision because we see how these products actually look like.
  2. Trust. Seeing a product approved by other customers will greatly improve the credibility of your brand.
  3. Engagement. UGC targets the most active group of shoppers and viral videos will always spark a conversation.
  4. Instant feedback. Want to know what people think of your product? Reading comments under a post is a powerful way to gain insight. The key here is to not get lost and focus on the important.
  5. Easy to make. No need for professional-grade lights or a fancy camera. Just pick up the phone and push the record button.

Until recently, UGC was generally considered something only consumers created, which meant brands had little to no impact on the outcome. With the rise of influencers, companies started to pay attention, and online brand ambassadors were born. In a matter of years, product reviews posted online by said ambassadors started to resemble professional ads rather than honest reviews because they were paid generously and brands believed this would generate a lot of sales. And they did.

Now we are starting to see the benefits of raw and unfiltered content. Brands that share their products in real-life environments are viewed as more trustworthy.

Does that mean that professional photography and expensive commercials are a thing of the past? Not at all. There is a time and place for every type of ad. UGC-type videos are great at getting your potential client’s attention while scrolling on social media. Good-looking product photos and videos are still valuable assets of your brand.

If you are interested in learning more about UGC-type videos and how to implement them in your marketing campaigns, we are happy to help you get a better understanding of what this method can do for you. Kindly reach out and let’s have a chat.

— Taimar Müller, Founder & Creative Director, Müller Media