If you use the internet, specifically Instagram or TikTok, you will likely have seen UGC content. UGC stands for User-Generated Content and covers everything from reviews to reels and YouTube videos. Brands have been reposting and repurposing reviews for years, but recently, there has been a rise in demand for ‘paid’ UGC content, specifically videos. 

Paid UGC is content that is paid for and then created by people who use the product. UGC can be used for anything from cooking/reviews to running videos, depending on the product. 

Effectively, brands are now paying content creators and NOT Influencers to create content for the brand. Often, creators are paid to create Instagram stories, reels or TikTok videos. 

But what are the benefits of paying a content creator vs an influencer, and should you be utilising UGC? What does ‘paid’ content really mean, and what’s the difference between influencers and creators?

 

Influencer Marketing vs UGC?

Think of UGC Creators and Influencer marketing as an extension of your marketing team. Both are great and create high-quality professional standard content. However, they sit in different areas of your marketing strategy. UGC creators are often a more cost-effective option compared to influencers, but that’s not their only benefit. 

Brands pay creators a flat rate for the video + any extras they may want (such as long-term ad usage/raw footage rights). UGC creators often don’t have large followings and get paid by brands to create content for them. The brand can then chose to post the content on their socials or repost the creators content. That being said, some influencers become UGC creators, and some UGC creators end up becoming influencers due to the close nature of their content. 

Influencers, on the other hand, work in ‘collaboration’ with brands. Videos made where influencers are paid have to have ‘ad’ tags when posted, and the brand often does not own exclusive rights (unless written explicitly into the contract).

Whilst the nuances of these transactions can vary from brand/creator, the core principles tend to stay the same.

UGC creators are best for launching new products to help create content and build reviews, creating customer testimonials. Whereas influencers are great for generating brand awareness. Influencers also potentially produce higher conversion rates (but be aware these will peak and trough according to date of posting). According to Mailchimp, “A study of UGC found that nearly 90% of consumers say that authenticity is an important factor when they’re deciding what brands they prefer” something that UGC content creators excel at compared to influencers. 

 

Why you should be utilising UGC.

User generated content has lots of potential, but there are a few benefits that stand out above the rest.

Authenticity.

Although most user-generated content is paid (or at least gifted), there is inherently a more authentic feeling to UGC. This is because most UGC content creators are just ‘normal people’ and are more relatable/have a more attainable standard. 

This helps build customer relationships as they can relate to the creator more, and are more likely to trust the person’s opinion. People can slowly begin to feel as if they are friends with the creator/relate heavily to them. UGC creators generally tend to have a more ‘achievable’ life, meaning that their content is more likely to perform well when people feel as if they can relate to the creator. 

Personalisation and branding.

Influencer-created content usually needs to stay in line with their ‘aesthetic’ and general style of content to not make the product promotion seem forced or fake. However, because UGC content creators don’t usually have a large following (and if they do, it’s usually for their UGC created content), they can adapt their style to suit the brand’s needs. 

UGC content often has a lot more flexibility when it comes to shooting/editing style, and is less likely to look like an Advert. “ UGC Agency Lauren Labeled explains, “If UGC looks like an ad right off the bat, it kind of defeats one of the main reasons UGC is so effective. Put yourself in the viewer’s shoes. What would you want to see? What would you care to know about this product that would sell you?”

Because UGC creators are often less well known, their content is often less ‘ad like’ and more authentic. Even though consumers are more aware of UGC style content, they still convert well. However its important to note that as the content is still an advert, advertising laws still apply. Videos from content creators must still be clearly labelled ad. 

Furthermore, as UGC content creators tend to be much less costly than your typical influencer. UGC content therefore allows you to optimise your budget. Spreading your budget across multiple UGC content creators allow you to maximise your brands reach, reaching a larger target audience. 

 

But they scream ad because it’s such a well-worn format now, no?

Well yes, and no. Whilst people are more aware of ad content than ever before, UGC content still comes across as more natural and less performative than influencer content. Creators are always coming up with more innmovative ways to create content and adverts, take the latest voice over trend for example. By adapting to these trends content creators are able to make more acceptable content that sticks out less than regular influencer adverts. 

 

SEO and Brand visibility.

UGC can be great for SEO and brand visibility. The fresh and relevant content often has lots of keywords included, and can be keyword optimised. The variation of keywords can capture a wider range of search queries, helping your site rank for more terms. By updating your website consistently with new content, you can help your site rank higher. Google favours sites that regularly update their content as well as sites with longer dwell times. Content that engages and captures the attention of your audience can increase average watch time and increase site/social engagement. 

According to Billo, “A whopping 72% of consumers globally find that UGC videos on a website not only better their understanding of the product or service but also significantly boost their confidence in deciding to purchase from you.” Diversity is essential for SEO and UGC is great for this. “Different types of UGC, like customer reviews, videos, and photos, bring a rich mix of keywords and topics to your site. “

The statistics:

One survey provided by Tint claimed that “Ads based on user-generated content receive 4 times higher click-through rates and a 50% drop in cost-per-click compared to average ads.”

But also that “One-quarter of search results (25%) for the world’s biggest brands are links to user-generated content.” and “Almost half of customers (48%) claim that user-generated content is a great method for them to discover new products and this can be accelerated with product sampling.”

 

How to incorporate UGC into your E-Commerce site

UGC can be used on your website as well as on your social media channels. Consider adding a ‘on you’ section on the bottom of each product. This allows people to tag your products on their social media channels and it will appears on your website. Equally you can add an instagram feed section on your website that draws through images.

Another way to increase UGC on your website is to allow people to add reviews on individual products. This allows people to comment on their opinions, and contribute videos/images if they feel necessary. This is a great way to to get open and honest feedback, as well as key words. 

Brands that do UGC (and do it well)

The ordinary

The ordinary are known for their great use of UGC on both their website and their social media.

Urban outfitters

Urban outfitters lets customers review their products on their website page, even letting them provide photographs and videos. These are great forms of UGC as it helps build brand trust and authenticity buy allowing potential customers to see real life examples. 

Estrid

Estrid is a fairly new brand who went wham on UGC content when setting up their business, and it paid off. So much so that I know a lot of people who have since purchased an Estrid razor.