UGC is not dead, just different
Once upon a digital horizon, User-Generated Content (UGC) emerged like a superhero in the realm of online advertising. People from all corners of the internet were sharing their experiences, and brands saw this as a goldmine! It was the age of authenticity; genuine folks were dishing out endorsements like it was confetti at a party.
But what once felt like authentic storytelling and an endless source for high performing ad creatives turned into a branded content circus. Articles like “IS UGC DYING?” have been flooding the net in the last months, and CPMs for UGC ads on Meta have gone through the roof. So what’s going on here and how could we get our ROAS on UGC back?
The evolving landscape of UGC:
Online chatter about products exploded with the birth of social media giants like Facebook, YouTube, and Twitter. Suddenly, everyone with internet access had a voice, reshaping how we talk. Businesses caught on fast, seeing a goldmine for promoting their brand. What started as genuine praise for products turned into a whole new advertising game. Authentic endorsements from regular folks became marketing gold, influencing what we buy. Studies show our friends‘ opinions heavily sway our shopping habits—54% of social media users research products, and a whopping 71% buy based on social media suggestions. UGC became a superstar in marketing, with brands urging people to share their experiences. It was a win-win: free advertising that actually worked!
But UGC wasn’t just heartfelt; it was practical too. Brands skipped the pricey production studios and fancy cameras, turning to everyday folks armed with smartphones. But then money entered the game. While it started with genuine sharing, brands started to pay users for creating UGC and an industry of “UGC creators” started to blossom.
So why did UGC shine? Because it was real! People resonated with genuine content shared by fellow users, feeling like part of an insider club. It let personal flair and creativity shine, outshining most ads by feeling more authentic and relatable.
Reasons why UGC lost its way:
But alas, with great fame comes great challenges. What once felt like authentic storytelling turned into a branded content circus. It’s like having too much of a good thing—suddenly, UGC became as common as selfies at a tourist spot. The quality dropped, and our attention spans? Shorter than a TikTok video. And the reasons for that are:
- Over saturation of inauthentic UGC: The initial promise of UGC was to provide a platform for genuine, unfiltered consumer expression. However, the overwhelming volume of UGC has led to an over saturation of inauthentic content, diluting the impact of authentic voices.
- Savvy Consumers: Consumers are getting wiser to marketing tactics, recognizing that not all UGC is as organic as it appears. They are increasingly aware of the transactional nature of influencer marketing. This heightened awareness has led to an increasing skepticism. Brands need to find ways to foster genuine connections with consumers without compromising transparency.
- Same mold and overused formats: The repetitive nature of UGC has resulted in an oversaturation of similar hooks, formats, and storytelling techniques. This predictability has dulled the impact of UGC and made it less engaging for consumers. It is vital to explore innovative and diverse formats to capture the attention and stand out from the crowd.
- A mere transactional relationship with UGC creators: The competitive landscape in influencer marketing has led to transactional relationships between brands and creators, specially if the content creation is based on UGC only. This means that the creators are not advocates or even users of the brand they are promoting, which can lead to inauthentic content and lack of creativity and consistency.