UGC Meaning: How To Harness The UGC’s Power [Detailed Guide For Marketing Professionals]

Forty percent of shoppers say user-generated content (UGC) plays a vital role in purchasing decisions. While conventional advertising is effective, UGC is now an essential part of the story.

But how should marketers be using this new form of communication with their audiences?

That’s the topic of this post. We explore UGC in all its glory, including how it started and the benefits of using it. Then, we move on to some of the challenges you could face when implementing it and examples of brands using it successfully in their campaigns already.

What Is UGC Content?

But first, what does UGC mean?

UGC refers to marketable content created by users or influencers, not companies.

UGC’s meaning has evolved, but it now means content that third-party creators create by themselves. Often, it is marketing content, extolling the benefits of a specific product or service.

How Did UGC Get Started? And Why Did It Evolve?

The early days of advertising witnessed brands using actors to perform using their products. Companies like Kellogg’s, Coca-Cola, and Marlboro fielded various characters to convey their narrative.

But there was a problem. As audiences became more sophisticated, these approaches became less compelling. Consumers wanted to see real people interacting with products, not actors.

Progressive advertisers recognized this before the mass adoption of the internet and there was a spate of commercials from insurers, travel agents, and household product manufacturers with unedited customer interviews. Companies knew they had to generate social proof by putting real customers in front of the camera and to talk about their products and services.

However, this prototypical approach wasn’t really UGC as we know and love it today. Before social media, there were no influencers with ready-made audiences to tap into. Instead, companies paid advertisers, like TV and radio stations, to broadcast their customer review content.

Proper UGC content emerged in the late 1990s and early 2000s with the advent of the internet. Suddenly it was possible for anyone to broadcast their product and service opinions.

Amazon was a pioneer in this regard. The ecommerce platform allowed users to post reviews and ratings on products sold on the platform and recommendations to other buyers. Then, in the mid-2000s, the ability for shoppers to transmit their opinions grew even faster. Facebook, MySpace, and YouTube provided content-first platforms where users could share their opinions with ease.

Around the same time, the term “user-generated content” began circulating. Marketers saw that the public could also create marketing materials for them, saving them the effort. Between 2007 and 2010, this process accelerated and companies invented the acronym “UGC,” incorporating it more into their marketing campaigns.

One of the first examples of this was Dove’s Campaign For Real Beauty. The idea was for users on various social media platforms to talk about their personal experiences with beauty. However, the drive was wildly more successful than the company imagined because of the legacy media attention it garnered. For the first time, shoppers saw people like them advertise products.

During this period, brands in the food and beverage industries also discovered the value of UGC content. Coca-Cola launched the Share a Coke campaign with personalized bottles with people’s names, while Starbucks created a tribe of people who love spending time in its coffee shops.

When Twitter arrived in the early 2010s, hashtags added further fuel to the UGC fire. The search feature made it more straightforward for shoppers to find relevant commercial content. Users could search for hashtags like #shampoo or #anglingequipment and find more information on products and services.

There was also more of a two-way conversation during this era. Brands often asked audiences for ideas to improve their businesses. For example, Lego launched a competition where the winner would see their concept developed into a real Lego set.

Over the following years, the reach of UGC marketing increased further. GoPro saw its share price shoot to the moon when hundreds of influencers wore its portable camera and filmed themselves engaging in outdoor sports and pursuits.

Calvin Klein’s #MyCalvins is another excellent example. It got people to take photos of themselves wearing the company’s underwear, providing eye candy for social media. Ultimately, the brand attracted everyday consumers and celebrities, generating a stir that boosted engagement.

Even Doritos saw some success. The tortilla chip maker invited fans to create commercials as part of its Crash the Superbowl contest. The result was a series of ads that made its products even more memorable.

The Astonishing Benefits Of UGC: How It Can Help Your Brand

The history of UGC is interesting, but how does it help your brand beyond conventional advertising? That’s the big question. After all, can’t you just use pay-per-click (PPC) and staged television ads to generate the same effect?

We believe the answer is “no.” That’s because UGC offers unique benefits that other forms of advertising don’t.

It’s Authentic And Builds Trust

First, UGC comes from the heart. Unlike most corporate content, it doesn’t feel staged or sanitized. Users get unfiltered opinions they can trust.

There’s also an element of social proof (as there is for reviews and testimonials). Users tell their peers that they love your products without you prompting them. It’s the opposite of conventional advertising where they take your word for it.

Furthermore, people are more likely to trust recommendations from people like themselves. Therefore, you can find partners who target all your audience segments, not just a few.

It’s Transparent

UGC is also transparent. Audiences get to see how your products perform in the real world instead of on staged ads (like the Marlboro Man or Kellogg’s Tony the Tiger).

This approach is risky (because of the potential flaws it could expose). But experience shows that it works on most occasions. Consumers prefer reviews of products in true-to-life situations over staged presentations, even if you still need to iron out problems.

It’s Reduces Production Costs

The reduction in UGC production costs is another profound benefit. Unlike traditional advertising, it is inexpensive and less time-consuming to create. While some work is involved (such as finding suitable influencers and curating content), there’s less of it because creators get on with their own thing. Companies don’t have to hire massive marketing teams with dozens of writers, photographers, and videographers to distribute their messages. UGC creators do that for them.

It’s Scalable

Another welcome aspect of UGC is its scalability. It can expand almost infinitely because of the abundance of creative geniuses willing to promote your products and services.

Most companies start with nano- and micro-influencers and build up from there. However, you can team up with a mega-influencer (someone with over a million followers) if you think they’re the perfect match for your campaign. Even if you saturate their audience (which is unlikely), there are always other influencers you can leverage in partnerships.

It Creates Content Continuously

UGC is also a benefit because it constantly generates new content. Influencers, creators, and the public can always upload new videos and photos.

Because of this, UGC campaigns often take on a life of their own. You don’t have to invest in pushing them forward – they create their own momentum.

It Improves Engagement

Another critical benefit of UGC is how it fosters customer engagement. People are more willing to participate in your narrative when you put the right incentives in place.

For example, you might use UGC to generate feedback on products and services and then publicize how you are implementing recommendations. Or you could use it to improve your marketing strategies and enhance your brand story – it’s up to you.

It Improves Customer Loyalty

You could also make the argument that UGC improves customer loyalty. People are more likely to feel an emotional connection with creators than with in-house marketers.

Don’t underestimate how deep this sense of loyalty runs. Some customers will go out of their way to try your products just because an influencer they love recommends them.

It Offers Diverse Perspectives

Lastly, UGC brings diverse content to your brand. You can get perspectives from creators across the spectrum.

This aspect of UGC is particularly helpful for companies with diverse demographics. Reaching out vicariously using influencers improves your reach with client segments, deepening your impact further.

Challenges of UGC: Why Some Brands Get It Wrong

It should be evident by now that UGC is a powerful, brand-affirming tool. But it does come with pitfalls. And if you aren’t careful, these can trip you up.

Inconsistent Quality

One problem is inconsistent quality. Some influencers produce professional-looking videos while others don’t. This discrepancy creates problems when standards don’t align with your brand’s values. Creators may misrepresent your aesthetic, harming your image.

The Fix: You can solve this problem by issuing brand standards across all influencers and curating content you want to include in your campaigns.

Inconsistent Brand Image

Likewise, inconsistent brand images can also wreak havoc. If customers present you in wildly opposing formats, it can also lead to misrepresentation.

The fix: Create brand guidelines documents telling influencers and creators how they should present you. Focus on generating simple-to-follow rules that the general public can understand and implement.

Copyright Issues

You can also run into trouble with copyright issues. UGC creators may include copyrighted music, videos, and images that commercial entities like yours can’t use.

The fix: Work with a legal team to assess copyright infringements. Assess and filter all content for obvious violations (and ask creators to avoid them!)

Lower Ethical Standards

Some creators may have lower ethical standards for you (and recommend using your products in ways you never intended). These cases can result in brand damage if audiences perceive you might support them.

The fix: Discontinue relationships with influencers that deliberately violate your ethical standards.

Managing Content Effectively

Lastly, managing the volume of UGC your brand receives can be challenging. Thousands of fans may decide to work with you or promote your products, so sifting through submissions can take hours.

Most companies moderate UGC content, filtering out anything they think might be harmful. However, most rely on teams of qualified and experienced people to do this work.

Furthermore, UGC can also sometimes be negative. Creators might not like your products. (It’s always a risk!) UGC can sometimes go viral for the wrong reasons!

The fix: Most brands use staff who can filter it out or respond to harmful UGC. These teams are costly but effective.

Other brands monitor content reactions and comments online using social listening tools. These alert marketing managers to negativity and provide tools for addressing it quickly before it spreads.

7 UGC Campaign Examples That Rock

So far, this conversation has been pretty abstract. Now, though, it’s time to look at some successful UGC campaigns in action, given a helping hand by Billo’s user-generated content platform.

Bloomers Intimates

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Bloomers Intimates is a lingerie brand selling stylish and attractive undergarments. However, the company always found it hard to make itself popular in the competitive women’s underwear market.

To deal with this, it worked with Billo, leveraging its influencers and partners. After overcoming a slight hurdle (getting influencers to wear products correctly), the campaign generated massive success. Bloomers Intimates’ revenue grew by an astonishing 400% year-over-year, with a 300% increase in return on ad spend (ROAS). With Billo’s help, it saw its sales pop and launched several products, lowering its cost-per-acquisition by three to sixfold.

Bickster

Bickster is an app publishing company looking to expand into the AI, publishing, and healthy-living industries. However, it couldn’t develop paid acquisition strategies to drive downloads and was overpaying for new customers.

Fortunately, it contacted Billo to find a way around this problem. Integrating our platform into its growth process allowed it to improve creator responsiveness and provide better instructions to its influencers. After the initial phase of the collaboration, it saw a 500% decrease in cost-per-install and a six-times increase in Facebook client spending.

Good Protein

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Good Protein is a vegan brand providing high-quality, animal-free protein shakes to the plant-based fitness market. Established in 2019, the company is now a leader in the wellness space, offering transformative products that give users the bodies they want.

However, it wasn’t always easy for the company to succeed. Good Protein struggled to find content creators who could deliver genuine reviews and handle scripts effectively, prompting the need for a more comprehensive approach.

That’s where Billo entered the picture. We solved Good Protein’s content-related issues by streamlining their marketing efforts, enabling them to find compliant creators for their brand.

The results of the collaboration were spectacular. Good Protein saw a ten-fold increase in video production (from three to thirty per month), and a massive increase in sales (including 350% via Facebook).

The company also benefited from using Billo’s wide range of content creators. It wasn’t relying on the same personalities week after week.

Miss Finch

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Miss Finch is a New York City-based fashion house focusing on modest dresses. It believes more conservative attire can be fashionable.

However, it wasn’t always plain sailing for the brand. The company found it hard to source consistent and compelling content from its influencers to encourage sales. It felt that its existing partners weren’t showcasing its product line effectively on Facebook and other social media platforms.

But when Billo stepped in, things changed. Miss Finch overcame some of its core challenges and increased return on Facebook Ad investment by an incredible 600%. The company’s ROAS also went up with the brand’s CMO describing working with Billo as “easy.”

Once Billo helped Miss Finch leverage its worldwide base, there was no stopping it. The brand saw massive expansion in numerous markets, including Alaska, Australia, and Canada.

Motiv

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Motiv started its journey to greatness as a humble supplements company. The brand focused on wellness, hoping to engage its audience online.

However, despite a slick website and winning product, the business couldn’t gain traction online. It found it hard to distinguish its products from everything else out there in the eyes of consumers. It knew compelling UGC videos were essential for success, but couldn’t get the volume it wanted.

After working with Billo, that changed. Collaborating with us helped the firm achieve an incredible 8.2% click-through rate on its ads by capturing audience attention and building authentic connections with them. Furthermore, the company also improved its online visibility, gaining more organic traffic from social media users interested in health and wellness.

GroundLuxe

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GroundLuxe sells high-quality bedding products to health-conscious consumers. It believes a better night’s sleep is essential for short- and long-term well-being.

However, the bedding brand had no experience in compelling video production before Billo. It didn’t know how to foster a deeper connection with its audience.

Therefore, we suggested using our platform’s influencers and creators. Leveraging their creativity could help the company promote its bedding and sell more.

With our help, GroundLuxe went from almost zero to over $1,000 per day in revenue. It also launched a TikTok shop to expand sales and improve its advertising costs on platforms like Amazon.

The big breakthrough came when GroundLuxe began using influencers from niches it didn’t know it had. The company saw sales growing in new demographics, allowing it to thrive more than ever before.

Doubletake

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Finally, sporting goods store Doubletake, (focusing on tennis and pickleball accessories) approached Billo to help it with its UGC marketing. The company was finding it hard to create ads that would thrill its TikTok and Meta audiences and engage viewers.

However, Billo helped. We provided the brand with creator- and influencer-based advertising solutions that increased ROAS by approximately 500% and the brand’s visibility and engagement.

Future of UGC: How Will It Evolve?

Most marketers know the answer to the question, “What does UGC stand for?” But only a few understand where it’s going in the future.

That’s where this section helps. We explore the latest trends and what they mean for your marketing efforts.

Influencer Co-Creation

Influencer co-creation is a trend that emerged in 2024. Here brands work alongside influencers to generate content, instead of letting them get on with it alone.

This movement is emerging for a couple of reasons. The first is that it gives brands more control over their outreach. Customers are less likely to say something they shouldn’t.

The second is that marketers in more regulated industries also want to start using UGC. Many have a legal obligation to ensure marketing meets legal requirements, so co-creation is necessary.

Even so, co-created UGC is still a win-win arrangement. Marketers benefit from influencers’ creativity, while creators will gain support and income (in some cases). Company messages will appear more consistent (an issue discussed above), making them more trustworthy.

Augmented Reality Integration

We could also see the development of UGC-augmented reality (AR) integration. Companies could use the emerging technology to superimpose influencer messaging on physical environments.

For example, suppose a prospect goes to a store and sees some makeup products that interest them. AR could overlay an influencer message about that product, encouraging a sale.

AR could also become like an assistant where creators provide information on using products in real time. For example, a consumer might want to know how a sonar system for fishing works and whether they should purchase one. AR systems could superimpose the information they need, overcoming their pain points.

Social Media Collages

Another UGC trend is social media collages. These present a wall of user posts, videos, and photos about products and how to use them.

The idea behind this concept is to make UGC more discoverable. Using various filtering and moderation tools, companies are finding ways to foster deeper connections with their audiences while keeping contributions brand-safe.

Some social networks will also allow companies to connect more deeply with their audiences by promoting more representative content in these mash-ups. These features encourage UGC creators to create compelling output, reducing moderation requirements.

Personalization

Lastly, UGC is likely to shift more toward personalized and customized content. Brands will focus on leveraging user-generated content for specific markets more than ever.

This approach is available today to an extent. But, as data and analytics improve, targeting will get better, allowing marketers to reach more consumer segments.