UGC: WHAT IS IT AND WHAT ROLE DOES THIS CONTENT PLAY IN MARKETING?

Nearly 40% of consumers trust reviews and content created by other customers like themselves the most when it comes to social proof of a product or service’s quality. Their posts evoke trust due to their authenticity, simplicity, sincere emotions, and positive associations. This type of content is called UGC — resistant to the “ad blindness” of users tired of direct marketing.

What will we discuss?

• What is UGC?
• Classification of UGC
• Advantages and disadvantages of UGC in marketing
• UGC creators
• How can a brand generate and distribute UGC?
• UGC platforms and formats with examples
• Conclusions

What is UGC?

Blogs on Tumblr, information-sharing websites like Reddit and Upworthy, the review service Yelp, and ultimately any social network, YouTube, or Wikipedia — all these online platforms are filled with user-generated content. UGC serves several roles, including self-expression and information sharing. It’s arguably the most popular unpaid work — creating content and spreading it.

This is why UGC — user-generated content — is a trending marketing tool. It combines advertising and creativity, offering numerous types, formats, and platforms for publication.

“User-generated content is any form of content, such as images, videos, text, reviews, and audio, posted by users on online platforms like social media, discussion forums, and wikis. It is content created by consumers to disseminate information about online products or companies selling them”. «User-generated content», — Wikipedia

Main Criteria of UGC

• Created by consumers, not by company employees or sellers.
• Contains a creative component, offering unique value from its creator.
• Published online, accessible to other users.

The process of generating user-generated content can involve collaboration between the consumer and the platform owner or product seller. For example, they might co-edit a review or agree on a photo style. Often, providing UGC is an unpaid service from a customer satisfied with the product’s results.

The history of user-generated content can be traced back to the creation of the multi-volume Oxford English Dictionary. Beginning in 1857, and for several decades thereafter, the editorial office received hundreds of thousands of letters from individuals wishing to contribute to the dictionary, following the request of Richard Chenevix Trench from the London Philological Society.

In the 1990s, many electronic platforms emerged, entirely filled with texts created by internet users. Content preparation required no hiring of specialists or paying for their work, yet website owners profited from the platforms’ popularity. This format of collaboration suited everyone, as users could quickly exchange information and find relevant content.

Such platforms included the movie information site IMDb (rec.arts.movies, 1990), Flickr (2004), and, of course, the educational web resource Wikipedia (2001). The popularization of user-generated videos, both educational and entertaining, was spearheaded by YouTube, founded in 2005 by Chad Hurley, Jawed Karim, and Steve Chen.

Today, UGC is particularly popular among millennials. Research shows that 35% of Generation Z trusts user-generated content. Its use on commercial websites, particularly e-commerce stores, increases page conversions by 74%.

You can find over 650,000 examples of UGC on Instagram by searching for the hashtag “#UGC.” Related queries such as “#ugccreator” and “#ugccommunity” also appear.

Why do so many people unbox products, write posts, create videos, and even edit clips without being asked or offered payment?

Why People Create User-Generated Content

There are three main reasons:

• Loyal customers enjoy the process itself, genuinely want to contribute to the brand’s growth, and see creating and sharing their content as a form of self-expression.
• Through the reactions of other users, consumers become popular or simply unite into groups, driven by a natural need for recognition or belonging to a community.
• In some cases, user-generated content provides material benefits to its creators — discounts, bonuses, prizes, goods, services in exchange, and so on.

People quickly grow tired of advertising, as it dominates not only television but also other aspects of modern life. You can’t escape banners and calls to action, even when reading an article for study or work. As users increasingly ignore marketing tricks, companies are left with one solution: to seek help from their customers or create all the conditions for them to share their experiences with the product. Many brands succeed at this, with consumers now generating three times more information about products and services than marketers.

UGC Classification

Based on the reasons for its creation and publication, user-generated content can be divided into five categories:

1. Organic UGC. Authentic reviews, photos, videos, or texts created by users on their initiative without any apparent selfish motive.
2. Barter-Based Content. Includes ambassadorships and collaborations with micro-influencers.
3. Paid Content from Thought Leaders. The most expensive method to obtain user-generated content, often serving as native advertising.
4. Creatives for Bonuses. Content created at the company’s initiative, promising rewards such as prizes for participation in contests.
5. Educational UGC. Platforms filled with helpful materials contributed by ordinary users. Examples include Wikipedia, YouTube for educational purposes, and websites like SparkNotes and Shmoop for book reviews.

For organic business promotion, it’s recommended to focus on organic UGC and creatives for bonuses. Paid native advertising is gradually losing its effectiveness due to brands overusing it, especially on Instagram. No one doubts anymore that millionaire bloggers post ads for money, not because of genuine product impressions.

Micro-bloggers are more trusted because they have smaller, more targeted audiences. However, it’s often more cost-effective for companies to create favorable conditions for generating free UGC, reaping results without extra investments.

Some types of UGC are popular on social media, while others are used on forums, in email marketing, or on other platforms.

Reviews

The worst thing an entrepreneur or marketer can do for a brand’s reputation is to publish fake reviews. The best approach is to develop and implement a communication strategy that encourages most customers to share their experiences with the company, both with friends and publicly.

A positive experience shared by one person inspires others to replicate it and enjoy similar emotions. In the past, landing pages were popular, where users arrived via banner ads. These pages featured lengthy reviews or stories of people whose lives improved significantly thanks to a product or service, ending with a button leading to the landing page.

However, today’s savvy online shoppers are unlikely to believe such fake stories, no matter how detailed or illustrated they are. Format matters, so it’s better to encourage customers to leave genuine reviews on official platforms designed for this purpose.

Social Media Posts

One of the best UGC options is a post or story on social media mentioning the store. Adding a branded hashtag or, for venues, a location tag can enhance the content’s reach, benefiting both the author and the company mentioned. Posts or videos can focus entirely on the product or feature it as part of broader content. If the product is visible in the frame without being the main focus, it already counts as native advertising.

Video Content (YouTube, Reels, etc.)

Videos can take various forms, depending on the author’s goals and the platform. Full reviews, before-and-after demonstrations, life hacks, storytelling about brand interactions (e.g., a visit to a beauty salon or clinic), comparisons of similar products from competitors, and useful product collections — all of these can be informative and compelling. Videos are viral by nature and evoke more emotions than photos.

Forum Comments

Not everyone realizes that UGC isn’t limited to social media content. Opinions, recommendations, and discussions on thematic forums are powerful tools. Interest-based platforms give users a sense of belonging to a group, and community members usually value each other’s input.

Some classifications distinguish ambassadorship as a separate UGC type, but it’s more of a phenomenon that can encompass all the mentioned types of user-generated content. An ambassador is a representative of the company within the target audience, closely associated with a specific brand due to frequent demonstrations of loyalty to its products while avoiding competitors.

Ambassadors often promote small businesses and receive perks such as discounted products in return. Unlike a campaign spokesperson, an ambassador works covertly and doesn’t disclose their agreements with the company. To maintain authentic UGC, ambassadors and other opinion leaders discussing a product or service must share the company’s values and genuinely enjoy the product they endorse.

Advantages and Disadvantages of UGC in Marketing

The advantages of UGC significantly outweigh its disadvantages, so let’s first consider the pros of this tool in a marketing context.

Advantages of User-Generated Content

• Enhances user engagement and increases the frequency of communication between the company and its customers, as well as among customers themselves.
• Builds consumer trust, increasing the likelihood that potential customers who see an ad and visit the website or social media will make their first purchase.
• Improves SEO metrics for web pages. The more external links to the site, the more traffic it attracts, boosting website visits.
• Sometimes, a positive review from someone else becomes a key factor influencing a decision to take a targeted action. It’s known that user-generated content increases conversion rates by 4.6%.
• Provides high audience reach. Social media algorithms, in particular, favor original posts featuring real people. UGC appears in recommendations for a larger number of accounts on social media more than typical branded content.
• Attracts new followers across various platforms, stimulates the creation and constant expansion of a community, and builds a group of brand advocates.
• The native nature of the content and its user-friendly language — sometimes including slang and descriptions of issues relevant to the target audience — increases customer loyalty.
• A key advantage is the infinite and self-renewing nature of photos. New content is generated by customers, who, in turn, attract more customers through that same content, creating a cycle — especially if marketers analyze this process early and work on improving it.
• UGC is created by active customers. This content attracts similar potential customers — those ready to make repeat purchases, participate in challenges and contests, and more.
• User-generated content serves as an inexhaustible source of ideas for the marketing department. The best posts from the target audience can be used for crafting ad campaigns, preparing newsletters, etc.
• Consumers spend over 5 hours a day viewing user-generated texts, images, and videos. Such advertising cannot be turned off; it is an integral part of the content consumers enjoy, so it doesn’t irritate them.
• Increases profits while significantly reducing company expenses. A large marketing budget is not required to create user-generated content.

It’s believed that ads containing authentic UGC are more memorable than traditional ones. This is because consumers within target audience segments share many similarities, and a recommendation from a peer with similar goals, fears, and needs impacts people more than a promotional description of benefits or a CTA.

Disadvantages of User-Generated Content

Despite its effectiveness and popularity, UGC has certain drawbacks.

• Due to the abundance of fake reviews online, UGC doesn’t always inspire trust. “Research conducted by Cornell University revealed that an estimated 1-6% of positive user-generated reviews about hotels online are fake”. “User-generated content“, — Wikipedia.
• Creative works produced by individuals are often lost when specific web pages or YouTube channels are deleted, following a hacker attack on a platform, or due to technical malfunctions.
• From the moment of publishing anything on a public platform, one should be prepared for content to spread, including without attribution. Copyright laws play a crucial role here but are not universally applicable. As of the time of writing, Ukraine lacks laws regulating the publication, distribution, or modification of UGC online.
• Platforms, including social media communities and niche forums, allow communication only with a limited circle of individuals with similar views. As a result, users may eventually grow bored with this online environment featuring similar, potentially subjective perspectives.
• Some content creators only take the initiative for a certain period. Later, they may demand payment for their work or shift their attention to competing brands.

According to the HubSpot Social Media Report, 82% of companies believe modern consumers mostly discover brands through social media. Traditional search engines are becoming less relevant. Regardless of the business sector or scale, encouraging customers to create UGC and analyzing this content to improve products and services will remain relevant.

Creators of User-Generated Content

Opinion leaders can act as UGC creators if they produce high-quality creative ads, conduct genuine product testing, provide honest feedback, work on visual aspects, etc. However, influencers and UGC creators are different concepts. The latter is broader and can include bloggers as well as customers leaving a review after their first interaction with a company.

Opinion leaders are usually paid to promote products to their audience, with brands compensating them for reaching the influencer’s followers. UGC, on the other hand, is more often published on the brand’s own channels — its website, social media community, or independent platforms such as review sites and forums. The main goal of UGC is no longer extending reach but increasing the loyalty of existing and potential customers. This is achieved through authenticity and a precise alignment with the target audience’s needs.

You don’t need a large following or high engagement rates to become a UGC creator. Their task is to influence the brand’s audience, not their own. Preparing images and videos doesn’t require special equipment, and writing texts doesn’t demand copywriting skills. The simpler the review, the better. However, it cannot consist of just two words. One of UGC’s key characteristics is informativeness, answering other buyers’ questions with concrete examples.

If you want to try your hand at being a UGC creator, prepare accordingly:

Step #1: Create a dedicated account for UGC work on the platform where you plan to post reviews

In the page description or Instagram profile bio, include an identifier such as “UGC”, “UGC Creator”, or “UGC-creator”. This will help brands find you.

Step #2: Choose industries and brands you’d like to work with

List your interests, areas where you’re knowledgeable, and topics that interest you. What do you order most often online? This analysis will help you create a list of potential brand partners. Ensure they utilize UGC and find out which content format they prefer. It could be a clothing store featuring short customer video reviews in saved Stories or a cosmetics company hosting a Reels contest showcasing product use. What resonates with you could become your new hobby — UGC.

Step #3: Create high-quality UGC

At this stage, creativity is essential. A post written according to a shop owner’s script isn’t UGC. To have brands find you on their own and offer various bonuses in exchange for product reviews, build a portfolio of UGC. This could be a folder of saved Stories on Instagram.

Becoming a UGC creator requires specific skills: creating and editing videos and photos, writing engaging captions, developing video scripts, speaking on camera, conducting research, and ideally, having basic marketing knowledge — especially understanding social media algorithms.

For individuals not planning to profit from content publication, no professional skills are needed. Brands value customer feedback in any format. An aesthetic photo and honest review are enough.

How can a brand generate and distribute UGC?

If a brand has never used UGC for advertising before, the action plan can be as follows:

Create optimal conditions for users willing to create free content

Many modern food establishments focus on details previously overlooked in this niche. For example, how aesthetically pleasing the walls are, whether table zones are well-lit, the size of mirrors, and how good photos taken in them would look.

Cafés and restaurants not only make their interiors cozier but also encourage their customers to share their experiences. Sometimes, QR codes asking for feedback are placed on tables.

A great example is Starbucks. Cups with customers’ names, branded stickers, and everyday items create situational content that people want to share.

Come up with a hashtag

A branded hashtag for user-generated content allows customers to see each other, grasp the community’s scale, and feel like part of it.

For businesses, it’s an opportunity to track their user-generated hashtag and filter posts. Apple has its own hashtag, #ShotoniPhone. During a campaign, another hashtag, #NightmodeChallenge, was created, where iPhone users shared photos taken in night mode.

Think of personalization

Coca-Cola’s “Share a Coke” campaign showcased custom labels on bottles with individual names or nicknames. This approach encouraged customers to search for their names on bottles and cans and exchange drinks. The project effectively combined personalization and social sharing, boosting engagement and sales. The campaign reportedly brought the brand about 25 million new Facebook followers and a rapid increase in profits.

Encourage customers to leave reviews

According to BrightLocal, 68% of consumers need to see at least four reviews before trusting a brand. The way customer reviews are displayed in an online store matters greatly. Typically, reviews are placed in a separate section, which is rarely visited.

Amazon, for instance, encourages leaving reviews via the Alexa voice assistant.

Organize contests and other interactive activities

Contests with tags and links to the company help increase UGC volume.

Consumers are motivated by aesthetics and personalization, leading them to photograph thematic stickers, surprises for buyers, postcards, or even beautifully packaged orders.

If you want to consistently use UGC to promote your business, analyze user accounts carefully before sharing their content on your commercial page. You can use paid services like LiveDune, Inblogs, etc., if necessary. It’s helpful to outline requirements for user photos in your profile and save them in highlights. When running a contest, specify requirements for contest photos to align with the brand’s visual style.

For retail, packaging, design, and thoughtful touches, such as a handwritten personalized card in a package, are essential.

Ask for feedback at high-emotion interaction points, such as right after a purchase, unboxing the product, or achieving the promised result.

How can you encourage customers to provide feedback?

• Add a feedback widget on your homepage.
• Allow reviews directly on the product page.
• Reference reviews and product overviews posted on forums and other platforms.
• Include a “share on social media” button in the pop-up after order placement.
• Send an email asking for a review with a small bonus a few days after product delivery.
• Вкладайте у посилки листівки з приємними побажаннями та подякою за здійснення покупки і Include postcards with kind wishes and a reminder of where to leave a review in your packages.

You can also create a full-fledged loyalty program, where users earn bonuses or discounts for UGC.

Before publishing UGC, ask the content creator’s permission, especially if you want to share their post on your profile. Always credit the content creator, providing a link to their page or a tag. If the photo or video doesn’t align with the commercial page’s style, thank the user and leave a positive comment under their photo.

It’s known that click-through rates on target links in emails can increase by 73% when UGC is used. Incorporate user-generated content in emails and collect new material for cases, reviews, and product descriptions from a consumer’s perspective.

UGC Platforms and Formats with Examples

When Apple users expressed dissatisfaction with the photo quality of a new iPhone, the brand addressed its reputation issue using its customers. The company launched a social media campaign requiring participants to post photos taken on an iPhone with the hashtag #ShotoniPhone. The virality of this method demonstrated the smartphone camera’s unique capabilities worldwide. Complaints about the lack of a WOW factor in the new model faded away, as social proof works best.

User-generated content spreads well through hashtags. A branded hashtag combined with more popular or informative hashtags promotes posts and introduces the brand to potential customers or serves as a reminder.

In the literary world, creators of UGC have formed an Instagram community called Bookstagram, where they share information and thoughts about different books. Participants take part in reading challenges, book discussions, etc.

The travel company Well Traveled occasionally publishes mini-interviews with clients and their travel photos on its Instagram profile. These individuals aren’t influencers and might have private profiles with few followers, which is unusual for paid advertising or barter deals. Two features of these posts enhance trust. First, the post is published not on the user’s page but on the company’s profile. Second, the text includes a tag linking to the customer’s account. This makes it clear the person exists and genuinely visited the resort arranged by the company.

Some Instagram users and other social media platforms run niche-themed pages, where showcasing quality and aesthetic products is an opportunity to diversify their content. For brands, it’s an excellent collaboration opportunity in exchange for bonuses or at least a thank-you.

The most popular platforms for spreading educational content are Wikipedia and YouTube. Although YouTube primarily features entertainment content and ads, a significant portion of its videos are meant for education and development.

Frequently Asked Questions

Conclusions

User-generated content, known as UGC, is one of the most effective and cost-efficient marketing tools for businesses because consumers create it independently, often for free and voluntarily.

People feel appreciated when they are featured on the pages of their favorite brands. For this recognition, as well as for bonuses and gratitude from companies, they are willing to share their impressions about a product. This type of advertising can take any format — short social media posts, photo reports, and professionally edited videos. It also includes reviews, comparisons, and product/service analyses on thematic forums, aggregator websites, and classifieds platforms.

Today, Instagram is considered the platform with the highest return on investment. Other effective platforms for UGC distribution include Facebook, YouTube, and TikTok. Utilize various customer engagement methods, create communities whose members will provide a continuous stream of authentic and relevant content for your target audience.