10 Reasons You Should Invest in User-Generated Content

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10 Reasons You Should Invest in User-Generated Content

There is plenty of user-generated content available on the internet today in form of text reviews, product videos on YouTube, expert review blogs and social media images featuring products. Due to this easily available information, the consumer behavior has shifted. Now, reading product reviews, searching the hashtag on social media or watching product review videos has become an important part of the purchase journey for today’s shoppers.

On the other hand, businesses have also started to understand the importance of UGC and looking at new ways to use UGC to its full potential. They are experimenting with new formats of advertisements, campaigns, and website designs to engage consumers through UGC.

We have collected a list of top 10 UGC facts backed up by important statistics that you should know.

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1. UGC is Huge and Everywhere

  • User-generated content on the web is increasing dominantly. Pinterest pin creation is up 75%, Twitch video broadcasts are up 83%, Wattpad stories are up 140%, and Airbnb reviews are up 140% year-over-year. (Kleiner Perkins Caufield Byers)
  • 25% of search results for the world’s 20 largest brands are links to user-generated content. (Kissmetrics)
  • 350 million of photos are uploaded daily on Facebook and 80 million on Instagram, along with 432,000 hours of videos on YouTube. (Offerpop)

2. Millennials Love UGC

  • 86% of millennials believe that user-generated content is a positive indicator of the quality of a brand or service. (Bazaarvoice)
  • 51% of Millennials say that consumer-made reviews on company sites affect their buying decision. (Bazaarvoice)

3. Businesses are Using UGC

  • 86% of businesses now use user-generated content in their marketing efforts. (Semrush)
  • 70% of businesses are creating more content than they did a year ago. (Semrush)

4. UGC Affects Buying Decisions

  • Millennials find user-generated content is 20% more influential than other media sources like TV, newspaper, and magazines, in taking buying decisions. (CrowdTap)
  • 82% of shoppers consider user-generated content extremely important in their buying decisions. (3dcart)

5. UGC Increases Engagement

  • Brand engagements rise by 28% when consumers are exposed to both professional content and user-generated product video. (comScore)
  • User-generated videos on YouTube get 10x more views than the content uploaded by brands.(Emarsys)
  • Brands see 25% increase in conversions when user-generated photos are used instead of professionally made product shots by brands. (Source)

6. Using UGC on Your Website

  • 84% of millennials say that user-generated content on a company website has some influence on their purchases. (Bazaarvoice)
  • Only 9% of top 250 consumer brands place user-generated content directly on their product pages. (Clickz)
  • Websites which feature user-generated content see 20% increase in repeat visits and up to 90% increase in the time spent on the site. (Offerpop)

7. Using UGC in Ads and Campaigns

  • Facebook and Instagram ad campaigns using user-generated photos have seen up to a 50% increase in click through rate, over the campaigns using brand-created images, leading to a 5X Return on Ad Spend. (Instagram partners)
  • Online stores that use UGC in advertising, see 4x higher click-through rates and 50% drop in cost-per-click. (Shopify)

8. How UGC Affects Different Product Categories

  • According to a research, UGC can improve conversion rates 6.4% for clothing, 2.4x for jewelry, 1.7x for footwear and 1.6x for products in beauty and consumer electronics verticals. (Clickz)
  • 69% of consumers trust user-generated reviews about clothing, household goods, and personal care products. 68% trust reviews about computers and electronics, while 64% trust reviews for children products, while over 50% trust reviews on healthcare products, children products, and food. (Adweek)

9. UGC and Conversions

  • Conversion rate goes up to 4.6% when consumers see UGC while shopping and conversion rate can spike up to 9.6% when they interact with user-generated content. (Clickz)
  • When visual user-generated content is present on shopper’s path to purchase, conversion rate increases up to 10%. (Offerpop)

10. UGC Builds Trust

  • According to a report by Forrester, 70% of consumers find product and brand recommendations from their social circles trustworthy and 46% trust online reviews posted by other customers. (business.com)
  • 70% of consumers trust reviews written by other customers more than professionally written marketing content. (dmnews)
  • Consumers trust customer-made reviews about a product 12x more than promotional marketing content. (CIO)
  • 43% of people are more likely to purchase a new product when they have learned about it through social channels or from friends and family. (Neilson)
  • Millennials trust user-generated content 50% more than content generated by brands. (Smart Blogs)

Hope you liked this post. Stay tuned for more posts on UGC.

We at Artifacia help brands curate, publish and analyze their owned and user-generated content at scale. Our customers are driving high-quality traffic by using our solutions that spend 37% more time on the site, view 48% more pages and have 64% more e-commerce conversion rate.

If you are also looking to leverage your user-generated content, then signup below.

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