How UGC Stats Are Shaping UGC in 2024

Open up TikTok and you might encounter examples in the wild. User-generated content (UGC), discounted in the past, is now widely embraced in marketing. That’s because it’s extremely valuable when it comes to establishing authenticity and credibility for your business… Even so, it’s still a very underutilized tool. Here, we give credence to the significance of UGC, cite statistics that highlight its impact, and discuss how and where businesses can embrace UGC strategies.

What is user-generated content?

User-generated content is material that originates and is published by unpaid contributors or influencers, as well as customers or users. Think blogs, videos, social media posts, reviews, and more. UGC is in contrast to content that’s pushed out by an internal marketing team (and highly packaged) to further a brand image.

UGC offers a great deal of potential on the customer engagement front. Companies can use it to showcase product reviews online, share customer photos on social media, and feature customer testimonials in marketing campaigns. It’s real content created by real people.

4 Benefits of User-generated Content

Implementing UGC content can help support your company’s goals in ways you might not have considered. Here are a few of the perks:

Cost-effective Content Creation

Most small businesses lack the time and resources to dedicate to content marketing. UGC, however, is a low-hanging fruit. It’s free, authentic content you can use to establish credibility and trust, all of which will help your business grow. It’s a smart and cost-effective way to get your name out there.

Enhanced Authenticity

Consumers are leery of traditional advertising, and for good reason. Some companies aren’t exactly honest in their advertising. UGC can address this hesitation because it’s authentic. Prospects trust real people over brands and look to their peers for their opinions and insight. UGC provides the social proof to help you build a trusted brand.

Improved ROI

User-generated content is often better received online than traditional content. That’s because UGC is trusted due to it being unpaid and unsponsored,leading to higher click-through rates, conversions, and overall return on investment (ROI). Marketing decision-makers stand to gain from integrating UGC into marketing campaigns. They can do more on a lower budget, helping free up money for other areas that can positively impact the bottom line.

Customer Insights

UGC can be a source of consumer preferences, behaviors, and opinions. This information can help you refine your products and services so you hit the mark. At the same time, UGC can point to trends and shifts in consumer behavior, allowing you to be more nimble.

13 User-generated Content Statistics

You might be wondering how UGC compares to traditional content. It’s really a case of comparing apples to oranges. These stats might inspire you to give UGC a second look.

1. According to a University of California study, user-generated content is 35% more memorable than media produced by in-house teams.

UGC might have more staying power than traditional marketing content. This is especially noteworthy at a time when consumers are flooded with thousands of marketing messages each day. Yours might stick, even if it’s by way of a third party.

2. 9 in 10 consumers (92%) trust word-of-mouth recommendations from friends and family over all other advertising, according to a Nielsen report.

Most people don’t make first-time purchase decisions on a whim. Companies must give customers a reason to trust them. UGC can act as an analog for word-of-mouth recommendations. This social proof can help brands win and keep more customers.

3. Only 1% of millennials consider conventional ads to be engaging and trustworthy, according to Ipsos.

Millennials, who have significant buying power, don’t buy into traditional advertising. UGC, on the other hand, can be a means to win them over. UGC is perceived as the real deal, while a TV spot might come across as too corporate.

4. Use of UGC can mean 73% higher website conversion rates, according to worldmetrics.org.

This statistic underscores how consumer behavior influences purchasing decisions in the context of web conversions.

5. About three-quarters of consumers use social media to guide their purchases, according to Digital Marketing Magazine.

Social media is fertile ground for UGC. It’s where people share their experiences and opinions about trends, products, and services. UGC can move people from neutral to loyal buyers.

6. Nearly 80 percent of consumers reported that user-generated content shapes their purchasing habits, according to Stackla.

Consumers look to people they trust and respect for guidance on how to spend their money. UGC can direct them to your brand and products.

7. UGC can contribute to 10% more conversions when used to guide prospects through the buying journey, according to Salesforce.

People are hesitant to buy a product they can’t see online. However, UGC can demonstrate the product’s features and benefits helping them feel comfortable making the purchase.

8. UGC can result in a 20% increase in return website visitors and a 90% increase in each user session, according to MarketSplash.

Overly promotional content can be a turnoff. On the other hand, UGC can draw people in and even keep them coming back because the content is original and fosters trust.

9. Social media posts boosted by UGC have a nearly 30% higher engagement rate compared to the standard approach, according to MarketSplash.

Consumers look to other people for inspiration and even validation on how they should spend their money. UGC can sway them in the right direction and help you land more loyal customers.

10. 73% of consumers prefer to purchase from brands that use UGC, according to TurnTo Networks.

This stat demonstrates the value of UGC and that it’s not just optional but something you can’t afford to overlook.

11. User reviews can produce an 18% uplift in sales, according to ESW.

It’s human nature, people look to their friends and family for validation and affirmation of their habits. Testimonials and reviews can seal the seal, all things being equal.

12. Brands that incorporate UGC can save on content creation costs by as much as 60%, per Social Media Today.

Small businesses have to make every dollar stretch. UGC can help obtain significant results while saving money.

13. Video content generated by users is viewed 10 times more often than brand-created video content, Incense finds.

You might have an impressive video marketing team but traditional ads won’t speak to the hearts and minds of people the way UGC can. That’s because UGC is usually more casual and relatable.

These stats just scratch the surface, but they tell the story of how modern marketing relies on consumer engagement. A strategy that reflects UGC can help a company connect with its target market and even lap the competition.

3 Tips to Launching a User-Generated Content Strategy for Your Brand

You might not know how or where to start with UGC, so are a few tips to get you started:

Generate Pre-Launch Excitement

Before introducing your product or service to the world, stoke positive feelings by encouraging your audience to submit UGC. Create contests or challenges that create buzz and make people feel like they’re part of your story. You might consider incentivizing action by offering a discount or special deal if they contribute.

Authenticity is Key

Authenticity will make or break your UGC efforts. Create an environment where customers feel comfortable being candid about their experiences and opinions. Don’t put too many restrictions on the delivery as it can work against you. People can detect when a post is staged or too refined. Real, unfiltered content wins any day over canned ads because it’s more human-centric and relatable.

Team Up with Influencers

Influencers can help accentuate your UGC efforts because their message can reach thousands of people with credibility front and center. Put in the time to find ones that align with your brand values and have active communities. Their endorsements can prompt their community members to create and share UGC, taking your message further.

For more insights on how to use UGC for your business, check out our guide on How to Use User-Generated Content for Your Business.

Conclusion

Gone are the days of relying on in-house content alone to hit your sales goals. UGC can bring a fresh element to how businesses interact with audiences in 2024. Its authenticity, value, and high return on investment can make it part of a winning marketing strategy. By knowing how to use it strategically, businesses can create deeper connections with consumers and increase sales. UGC might be the missing piece in your digital marketing puzzle.

Gather UGC With Podium

You might be interested in UGC’s potential for content marketing, but are unsure of where to start. We’ve got your back.

Combing through customer reviews can be well worth your time because they’re content goldmines. Customer sentiment and brand reputation matters and the data supports this claim—93% of customers say online reviews influenced their buying decisions. But getting reviews can seem like a tall order when you have an unending to-do list.

Here at Podium, we save you from the hassle and leg work of collecting reviews in bulk. With Podium, you’ll bring more customers in the door with better and more frequent reviews—just by texting and automating review requests. Learn how to get more reviews, attract new leads, and make more money faster. Watch a demo and see for yourself how UGC might be a huge growth lever hiding in plain sight.