By Sharyn Smith, CEO, Social Soup
The proliferation of social media platforms and the rise of short-form, low-production content means the volume of media content is exponentially increasing with each passing day. Brands are grappling with a fundamental challenge: the insatiable demand for content in an era of somewhat limited resources. At the same time, constrained advertising budgets mean clients are demanding more cost-effective and efficient solutions to meet their content needs. And Gen Z’s growing lack of trust in mainstream media and a search for less commercial content is adding to marketers’ changes.
In the current environment, user-generated content (UGC) really steps up to the plate.
UGC campaigns are on the rise due to their cost efficiencies, their authentic nature and their ability to resonate with audiences. They are also a great way to combat the creator economy wastage spawned by brands continuing to spend big on macro influencers solely for followers, when what they really need is content. Of course, UGC is not a new concept – it’s been around since the early days of social media – but it is really only shining now as a viable and effective alternative to paid social or influencer content.
Shopify has shown that ads featuring UGC are receiving four times greater click-through and a 50% reduction in cost-per-click compared to average ads online. We are seeing effective results from our own clients when it comes to UGC. For L’Occitane and Sukin, for example, the appeal of UGC lies in its ability to provide a diverse and dynamic content library that reflects the varied experiences and identities of each of their audiences. L’Occitane makes use of creator content for in-store point-of-sale marketing, while Sukin has integrated UGC into its organic social media content, preferring it over influencer-generated content as it resonates better with their target market.
Audiences are sick of picture perfect, flawless shots in social media. They want genuine experiences and the perspectives of real, genuine people. Sukin has actively involved UGC creators in the content creation process, allowing them to submit raw footage that can be tailored to align with the brand’s messaging and style. This fosters a stronger relationship between the brand and audience and builds trust. Trust, in turn, builds loyalty. According to TIDAL Digital, over 90% of marketers believe consumers trust content created by consumers more than they trust content created by brands.
One of the other main advantages to considering UGC for your next campaign is the cost-effectiveness. We have found that collaborating with UGC creators can be more affordable than partnering with influencers, making it accessible for brands of all sizes. UGC content creators typically have smaller followings than the average creator or macro influencer, but they maintain high quality standards to allow brands to tap into their engaged audiences and access the rights to their content. Many brands are partnering with UGC creators in an ongoing way, integrating product and services into their lives with content created to fuel the brands on social channels rather than paying high production costs or not having enough content.
With content more in demand than ever before, UGC creators are a clear opportunity to cut down on creator economy wastage and load up on content that enhances authenticity at a more efficient cost. Don’t look at UGC content as a replacement for social marketing, but an addition to the traditional marketing mix. It is a growing opportunity for brands to get back to meaningful, grassroots influence that drives outcomes without the ad wastage.
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Sharyn Smith is the founder and CEO of Social Soup, the largest influencer marketing business in Australia and New Zealand, working with many of the region’s best-known brands. She has over two decades of experience in influencer marketing and engages the latest technology to connect influential consumers with brands. In 2022, Social Soup was named the best large agency/business in the inaugural Australian Influencer Marketing Council (AiMCO) Awards.
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Top image: Sharyn Smith