What is UGC? – The ultimate guide

➡️ Definition of UGC: User-generated content (UGC) refers to media content that is created by users and not by the company itself, such as text, images, videos or audio content.

➡️ Variety of UGC forms: UGC includes comments, reviews, blog posts, social media posts, videos (e.g. unboxings) and podcasts.

➡️ Marketing benefits of UGC: UGC increases the authenticity of posts, strengthens customer loyalty and trust, increases reach and improves SEO ranking.

➡️ Cost efficiency: UGC is more cost-effective and requires less operational effort than traditional branded content.

➡️ Legal aspects: Copyrights initially remain with the creator. Companies require usage rights in order to use UGC in a legally secure manner. Platforms such as Speekly automatically handle the transfer of copyrights to you.

The term user-generated content (UGC for short) refers to video content that is created by private users and potential customers. The terms “user-driven content”, “consumer-generated media” or “conversational media” are also used synonymously. In contrast to content produced by a brand or a company (branded content), UGC is by definition not created within a professional framework.

Although the term only emerged with Web 2.0, user-generated content has been around for much longer. The good old letter to the editor is one of the best-known examples of UGC. In the early days of the internet, the equivalent was forums where users could exchange ideas and give feedback. Nowadays, social media channels such as Twitter, Facebook, YouTube, TikTok and Instagram offer a wide range of opportunities to create and publish your own content.

In practice, the different types of UGC are not always clearly separated from each other. Photos, videos and audio, for example, can be described with text. Blog posts, on the other hand, are often supplemented with images. 

Within the UGC forms, there are also various stylistic forms that you can use to highlight the special features of your brand or product, for example social proofs, product reviews and testimonials.

Depending on the type, user-generated content can be published on various online platforms. Wikipedia is probably the most prominent and successful example of a platform that relies entirely on user-generated text content. Other classic platforms on which UGC can be created and distributed are:

⚡️ Websites & landing pages

⚡️ Social media channels such as Facebook, Instagram & Co.

⚡️ Video portals such as YouTube, Vimeo or TikTok 

⚡️ Photo sharing portals such as Pinterest

⚡️ Audio platforms such as Spotify, SoundCloud and Deezer

User-generated content is one of the marketing trends that is constantly evolving and has become an integral part of modern online marketing. User-generated content can be used specifically as a strategic brand management tool. For example, companies can use user-generated content via social media and thus actively involve the community in their marketing strategy. Competitions, surveys and other participatory campaigns are popular ways of obtaining user-generated content. 

User-generated content has several advantages in online marketing and on social media. Search engines such as Google, for example, incorporate user ratings and comments into their rankings. This is how UGC can improve SEO rankings. There are already a number of studies and statistics that prove how UGC pushes your KPIs. 

User-generated content enables...

• up to 29% higher conversion rate compared to campaigns or websites without UGC (Everyone Social, 2021)

• Up to 50% lower cost-per-click than classic product videos (Everyone Social, 2021)

• a 78% higher click-through rate in email marketing (Affde, 2021)

• The figures explain why UGC is so popular and successful in marketing. Many marketers already appreciate the benefits and potential of user-generated content: 

• 75% of marketers are convinced that UGC is more authentic than other types of content. (TINT, 2018)

• 58% of marketers already use UGC for advertising campaigns. (TINT, 2018)

• 50 % of marketers are increasingly relying on UGC in video and image form. (TINT, 2018)

“Someone is just trying to sell me something.” - This is how consumers often think about content created in the advertising and marketing departments of companies. Elaborately produced branded content is accompanied by a certain skepticism on the part of users and is often perceived as calculated. This is precisely where user-generated content comes into its own.

Word of mouth is the best advertising for your company and has been one of the most effective online marketing techniques for years. User-generated content is the digital implementation of word of mouth - and this is exactly where the great added value lies:

• UGC creates proximity & trust: If we know little about a product, we trust the experiences of other people. This “social proof” is what makes UGC so effective: customers receive a personal recommendation from someone who (at first glance) has no intention of selling anything, but is simply sharing their opinion. Users can identify better with this “like-minded person” and perceive the message as more honest and authentic. 80% of consumers find UGC to be the most credible marketing content (Stackla, 2019)

• UGC costs little: Another advantage that makes UGC interesting for start-ups and smaller brands is the high level of resource savings. Thanks to crowdsourcing, UGC is significantly cheaper and less time-consuming than elaborately produced promotional videos or traditional advertisements. 

• UGC strengthens customer loyalty: UGC not only focuses on your product, but also on the opinions of your customers. This incentivizes interaction, promotes the engagement of your crowd and strengthens brand loyalty. Competitions or surveys motivate users to engage more with your brand and contribute their own content. Creators also usually feel appreciated when you as a brand respond to their social media posts, be it through comments or reposts. This also improves the brand image.

• UGC increases your reach: As part of your social media strategy, UGC helps to make your brand better known. Basically, UGC is an effective multiplier for your reach and conversion rate. 

79% of consumers say that UGC has a very strong influence on their purchasing decisions. By comparison, only 13% claim this for content produced by brands (Stackla, 2020).

UGC belongs first and foremost to the person who creates the content. If you want to repost UGC on your social media channels, publish it on your website or use it for other marketing purposes, for example, you need the rights of use or exploitation. 

Important: Anyone who grants rights of use also bears the responsibility and liability risks for illegal content. This applies, for example, if a photo shows third parties who have not consented to the use of the photo, or if a video is accompanied by music for which the creator has no rights of use.

The rights of use and liability risks you have depend on the platform on which the UGC was originally created or displayed, as well as on how you want to (re-)use the content. 

If you want to include social media content such as photos or videos on your own website, you need the written consent of the author as permission to use it.

There is an exception if you repost public posts on social media platforms. In this case, it is usually sufficient to name and link to the content creator in the description.

A third option for the legally compliant use of UGC is to have content created specifically for you and your purposes, for example on a platform such as Speekly. You can indicate in the terms and conditions that the selected content will be used, possibly edited and published in the name of your brand. By ticking the box, users agree to the licensing conditions.