Why User Generated Content or UGC is trending?

User Generated Content is one of the trending marketing technology trends this year and this article explains why APAC companies should take advantage of UGC.

Consumers hate intrusive marketing strategies. One of the excellent ways for brands to revamp after the last two years of economic turmoil is to embrace user-generated content (UGC) to communicate and engage with consumers.

User-generated content (UGC) is a form of digital content created by online users rather than brands. Examples include articles, images, podcasts, digital music, testimonials, virtual concerts, and videos, which people post on social media, landing pages, checkout pages, and other online platforms.

Customer-Centric Content Boosts Engagement

Marketers can use UGC across all stages of the customer’s journey, boosting engagement and conversions.

According to a report, the Asia Pacific UGC Platform market is expected to have a 26.3% CAGR market growth from 2021 to 2027. This data supports the increasing demand for UGC content, not only from celebrities, athletes, artists, and other famous personalities but also from common people or consumers themselves.

Because many consumers regard UGC as a form of social proof, they are more likely to drive user action. Therefore, brands greatly benefit from UGC exposure, reach, and influence.

Brands can generate UGC by holding contests on social media and creating innovative hashtags, allowing followers to contribute and share. These tactics encourage user interaction and engagement and drive brand awareness and demand.

Customers Feel More Special With Affinity

As much as possible, most consumers don’t want to deal with ads, making UGC the gateway of many brands nowadays. Marketers can take advantage of UGC or brand-specific content to become closer to their target audience.

Brands can draw UGC from their loyal customers, who are passionate about patronizing their products. Including brand loyalists in content marketing campaigns makes them feel more special because of the strong affinity that customer-centric content provides.

Because consumers can relate to citizen UGC creators, they are more responsive to the brands they suggest. Consumers see themselves in UGC creators, trusting their word for a product’s effectiveness and efficiency.

Promotes Open Communication Between Brands and Audience

Brand advertising has evolved. Consumers are less likely to engage with brands unless they find them famous or highly beneficial. With digital technology, consumers have more options and better access to information. They’re also tech-savvy to use tools like ad blocker apps or plugins to avoid disturbance when they’re browsing or watching videos on social media.

A better way of communicating with consumers without being blocked before they even hear a brand’s marketing message is taking advantage of UGC. Creating UGC involves a participatory approach, wherein citizen content creators enjoy the freedom of speaking anything about the brands they support. They provide honest reviews that online users love to know before they checkout.

On the other hand, marketers can reach out to UGC content creators and ask for their support and recommendation. Brands can sponsor these creators from the consumer pool in exchange for product endorsement through video, podcast, or blog mentions.

Redefines Influencer Marketing

Influencer UGC refers to sponsored content pieces that influencers create, closely mimicking a customer testimonial than a paid ad. Because UGC is less advertorial and more entertaining, many people engage with them, trusting the personal brand experiences of creators.

UGC redefines influencer marketing by giving control to creators and incentivizing them for the content they share on digital platforms.

With influencer UGC, brands can take advantage of rare locations, like mountain peaks and secluded caves, untouched by their competitors, creating an excellent marketing edge. Such content forms capture consumers’ attention because of their raw and unique nature. They provide new entertainment tastes unseen in traditional mass media and ad-crowded digital platforms.

More Immersive And Interactive

Metaverse UGC is the future of marketing. According to Risa Feng, the Chief Executive Officer of BUD, a metaverse UGC platform, the next era of media won’t be limited to familiar forms such as text, pictures, or videos but will become available in more immersive and interactive formats.

Monetising and trading UGC assets have increased in Southeast Asia, paving the way for using non-fungible tokens (NFTs) and cryptocurrencies. Because of NFTs, many content creators are enticed to create more sponsored content. Many budding artists who create viral UGC in Southeast Asia use NFTs to earn extra income.

Marketers can use these trending incentives to work with metaverse UGC creators. In that way, brands can leverage more immersive and interactive UGC assets to boost their online presence and mainstream consumers’ brand awareness and engagement.

Indeed, UGC has dominated the consumer market, expanding its reach and influence across digital marketing platforms, especially social media. APAC marketers must keep an eye on new UGC updates, tools, and platforms that they can use to boost their brand presence and sales.