What does UGC stand for, and what does it mean?

UGC stands for “user-generated content.” In a marketing context, UGC refers to promotional content that’s created by individuals rather than your brand itself.

There are two primary types of UGC:

• Organic UGC. Individuals post content organically to share a brand they love with followers. It’s common among smaller creators who post on social media for fun rather than for profit. Positive UGC posts can be extremely valuable for your brand. You can encourage this type of content, but you can’t control it.
• Paid UGC. For this type of UGC, your company pays creators to shoot photos or videos that mention the brand or feature a specific product. You can then use the content in your own marketing activities. It still feels personal, but you have control over the message, timing and usage.

How is paid UGC different from sponsored content? With sponsored content, a brand pays to get in front of a specific user’s audience. The creator makes promotional content and publishes it to their own social media profile or website. With paid UGC, the creator doesn’t typically post the content—they send it to the brand. The company can then use it in advertisements, e-commerce product pages or the official brand social media accounts.

Types of UGC

While UGC is most commonly associated with social media, it comes in a wide range of forms:

• Video. Users create videos that include one of your brand’s products. They might film an unboxing video of a new pair of shoes, for example, or shoot a clip of themselves using one of your travel backpacks on vacation.
• Photography. Customers post photos that feature your brand’s products, locations or branded merchandise. This could include a selfie in your store or a photo of a new purchase.
• Audio. UGC can also come in the form of radio interviews or podcast episodes.
• Written content. When people write about your business in a blog post or an article on a website, it can qualify as UGC. Users might also promote your brand in online forums, comment sections or testimonials.

5 benefits of user-generated content marketing

UGC, whether it’s paid or organic, is one way to round out your marketing and advertising plan. Done well, this unique type of content can have significant benefits.

1. Increased authenticity

Organic UGC has one key advantage over almost any other marketing tactic: authenticity. It’s the digital version of word-of-mouth advertising. Because the creator isn’t compensated for the content, viewers often trust them more than paid promoters. As a result, UGC can be an effective way to humanize your company and build confidence in your brand.

2. Provides social proof

When a user posts an unsolicited video or photo about your company, it acts as a vote of confidence for the product or the brand as a whole. This type of social proof can influence consumers’ decision to make a purchase—after all, people tend to trust personal recommendations over advertisements.

3. Attractions and keeps customers’ attention

A successful UGC post is natural and relaxed. It doesn’t feel overly produced or edited; in fact, it might even be a little rough around the edges. This informal quality draws in users and puts them at ease. Compared to sponsored posts and ads, UGC often feels more real.

Customers see 5,000 ads every day—after a while, they’re likely to tune them out. If you can employ UGC posts to capture more attention, it can result in higher engagement rates, conversions and sales.

4. Stronger customer relationships

Social media enables users to interact with the brands they love, but those interactions are often one-sided. By encouraging and engaging with UGC, you can show an interest in building relationships with your most passionate and loyal customers. Major brands are already embracing this strategy by commenting on and sharing relevant UGC posts—it’s an easy way to make customers feel special and even more connected to the company.

5. Accessible for a range of businesses

It can be expensive to get influencers to promote your brand; creators with more than one million followers can charge as much as $45,000 for a single post. You can run a campaign to encourage UGC for a fraction of that amount. If you go the route of paid UGC, it’s safe to expect a more affordable price tag. According to the agency Brands Meet Creators, an average piece of UGC goes for just $212.

How can businesses use UGC in marketing?

UGC can happen organically, but there are also things you can do to encourage users to post about your brand. Try a mix of strategies to appeal to the different types of UGC creators: customers, employees, paid creators and fans of your brand.

Request to share content

When you see a strong piece of UGC related to your company, ask the creator for permission to share it. If they agree, you can share it on the brand’s profile. Make sure to credit the original creator—it’s considered good form. When brand advocates see that you share other users’ posts, they may be more likely to create their own.

When asking permission to share UGC, it’s important to be transparent about how you plan to use the content. Consider laying out the usage request in writing, or include a link to the terms you’re requesting.

Run a UGC campaign

A UGC campaign is a marketing tactic that encourages people to share their experiences with your brand. Start with a fun hook to get customers’ attention—ask them to show your products in unexpected places, for example, or set up a creative photo background in your store. Then, create a branded hashtag that users can add to their captions.

Hold social media contests

One way to get users to post about your brand is to run a social media contest. If the prize is valuable enough, you might see an influx of UGC posts from excited participants.

Pay for UGC

If you have a small brand or you’re new to the market, getting organic UGC posts can be a challenge. Paid UGC is a viable alternative—it’s affordable, and it gives you access to a diverse group of promoters.

There are many ways to find creators who are willing to make UGC in return for payment:

• Sign up for a service such as Billo, Brands Meet Creators or Insese
• Reach out to individual creators via direct message
• Post a UGC creator job listing

Before you start working with UGC creators, think about the terms. Do you want to approve the concept in advance? Should creators submit a finished product, or do you want to edit the raw content in-house? How many rounds of edits do you need? Plan to negotiate the terms and pay scale with each creator.

FAQs about UGC 

Is UGC the same as influencer marketing?

UGC is similar to influencer marketing in that social media users create content to promote your brand. Influencers are typically paid, either in cash or with free products, to post this content. UGC is typically posted organically, without the expectation of compensation. The exception is paid UGC, where companies pay creators to make promotional content that the company uses for its own marketing campaigns.

What are the risks of UGC?

As a brand, you can’t control the message of organic UGC. Customers are free to share their honest opinions, whether they’re positive or negative. Likewise, you also have no influence over the quality of the images, video or writing.