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Unlocking the Power of User-Generated Content: Benefits and Pitfalls for Your Brand

User-generated content (UGC) is booming in today’s digital landscape. UGC includes blogs, videos, photos, reviews and other posts created by users on behalf of a brand. It converts ordinary consumers into brand advocates, boosting trust, reliability, and sparking conversations online. UGC is a key player in today's marketing mix, especially on platforms like Instagram and TikTok.‍
Date
July 24, 2024
Category
Communication
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Social Media
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restaurant
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Relationships
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Growth
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Food Trends
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Marketing
,
Reading Time
5 Minutes

UGC success or return on investment (ROI) can be quantified by comparing it to paid advertising on Meta or TikTok. By analysing the cost per result (CPR) for influencer engagements - dividing the total fee by the number of engagements and video views - you can see if it’s more cost effective than your Meta CPR. A lower CPR from influencer engagements is a massive win for your marketing mix, achieving high reach and boosting its effectiveness by leveraging the power of third party endorsements. 

Our recent Sheep Dog Peanut Butter Whiskey influencer campaign is a great example of how effective content creators are in tapping into new audiences and showcasing a brand on their own channels. 

Jane’s reel skyrocketed to over 40,000 views and gathered 60+ comments in just three days. Russ’ video went even further, racking up over 115,000 views and 70+ comments. Now that's what we call a recipe for success!

My Jane Brain

https://www.instagram.com/reel/C9ZDaQDyMU2/

Russ Eats

So why should you embrace UGC on Instagram and TikTok?

1. Third Party Endorsement

Consumers trust recommendations from fellow consumers more than traditional ads. Real people using and loving your products builds trust and credibility. Instagram collaborations simplify the process even further and ensure content reaches your owned audience, as well as the creators audience. This was seamlessly integrated for a campaign with The Happy Mexican.

2. Boosts Engagement 

UGC fosters community and emotional connections, strengthening brand loyalty and expanding reach organically. Since its launch in December 2023, Penelope’s Circular Quay has gained significant online popularity due to strategic influencer marketing, becoming the top result when searching ‘Circular Quay’ restaurants on TikTok.

3. Cost-Effective

UGC is often a cost effective approach to content creation and helps to add a unique angle to content. Depending on the content creators you are engaging, some may incur a fee, but other more micro-influencers may collaborate for product sampling or contra deals.

And what are some of the pitfalls? 

1. Quality Concerns 

Not all UGC aligns with your brand’s standards. That is why detailed briefs and aligned talent is essential.

2. Legal and Ethical Issues

Using UGC without permission can lead to legal issues. Always seek permission, respect copyrights, and establish clear guidelines to prevent future headaches.

3. Loss of Complete Control 

Once content is live on social media, you can’t fully control its perception or use. Lean in to giving the influencers creative control, as they are the ones who understand their audience best.

Get in touch with the team at Stanley House Studios to chat about how we can bring your next influencer campaign to life! 

Author

Olivia Rugless

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Unlocking the Power of User-Generated Content: Benefits and Pitfalls for Your Brand