In the era of social media, consumers are overwhelmed with ads – wherever you turn, you’ll see some kind of a marketing effort. Influencers are everywhere, but UGC has made its way into the social media landscape as well. Still, many don’t understand the difference between user-generated content vs. influencer marketing. These two aspects of digital advertising sound quite similar, but they have distinct differences – let’s break them down to help you understand what your brand would benefit from the most.
Starting With the Basics – What Is UGC and What Is Influencer Marketing?
UGC, or user-generated content is content produced by regular social media users or specialized UGC creators. These UGC creators produce authentic content featuring certain brands, which they will later sell to the brand itself. The brand will post the content on their social media, but the UGC creator won’t post it on theirs. If UGC is created by regular users, the brand can reach out to them and request permission to use that content on their platforms. These users are usually fans of the brand, which is what drives them to produce such content.
On the other hand, we have influencer marketing, where a person is paid to promote a product. Influencers are social media personalities with a large following, usually specialized for a certain niche. They have the unique ability to influence the purchasing decisions of their followers, as well as their opinions and attitudes about products and brands. The influence can vary drastically based on the number of followers – there are nano-influencers with a few thousand followers, but there are also mega-influencers with more than a million followers.
The influencer industry has boomed in recent years – so much so that it’s now worth $21.1 billion. It’s one of the most efficient tools marketers can use nowadays, but UGC is quickly paving its way. What makes it so appealing is the authenticity that influencers often lack. UGC is real, relatable, and sometimes even ugly – which is exactly what makes it so powerful. Naturally, influencers can usually reach a larger audience.
UGC-Like Ads Are Somewhere in Between UGC and Influencer Advertising
The distinction between UGC creator vs. influencer is sometimes blurry. UGC creators rarely have a large following that would make them influencers – however, influencers can sometimes be considered UGC creators. What does that mean? There is a certain form of content marketing called UGC-like content.
This entails influencers creating genuine, organic content about a certain product or service without being compensated by the brand in question. You’ve likely seen this – the most common tactic is for a brand to send a PR package to an influencer without any expectations or requirements. If the influencer truly likes the product, they can decide to post about it on their platforms.
What Is the Difference Between UGC and Influencer Advertising?
So, UGC vs. influencer marketing – you know now what these terms represent. But what does all this mean from the perspective of a marketing expert who will handle a social media strategy for your small business or large corporation? How does a social media marketing agency decide which one will help your brand more? We need to look at several aspects to reach a conclusion- so, let’s get started.
Different Audience Targeting
When a brand chooses an influencer to work with, it always looks for someone whose audience overlaps with the brand’s. Beauty companies team up with beauty influencers, travel agencies team up with travel influencers, and so on. This is a great advantage – influencer marketing allows you to target specific audiences, making it easier to reach your perfect buyer.
On the other hand, UGC content is produced naturally. It doesn’t have a specific audience in mind – however, UGC is likely to reach the right people without trying. Just think of how effective the TikTok algorithm can be, and everything will be clear.
What Kind of Results You Wish to Achieve
The goals of these two marketing strategies are also quite different. When it comes to achieving specific business results, influencer marketing is likely a better choice. This stands for boosting sales, increasing engagement, boosting brand awareness, and creating an online presence and library of professional content. On the other hand, UGC is less about increasing conversions and more about building a reputation for your brand. The goals of user-generated content are:
- Providing an authentic insight into your products or services,
- Building a community of loyal customers,
- Getting your customers involved in the brand,
- Making your brand seem genuine and transparent.
How Much Control You Want to Have Over Your Advertising Efforts
When it comes to influencer marketing, brands have full control over the content that’s posted. They choose influencers, decide on the message of the ad, and shape the way content is created. Since they’re being paid for a collaboration, influencers don’t have full creative freedom.
UGC is different because brands have essentially no control over the naturally created content. UGC creators make what they want, with no supervision. It’s worth noting that this can sometimes end up with not 100% positive reviews, but this isn’t something brands shouldn’t fear – remember, users want to see authenticity. If things look too perfect online, the advertising efforts may backfire – users could deem that kind of content suspicious.
How Efficiently You Can Measure the Effectiveness of an Advertising Campaign
If measuring the impact of an advertising campaign down to every last view is important to you, the chances are that influencer marketing would be a better fit for your brand. When you collaborate with an influencer, it’s simple – you get exact analytics, and the numbers allow you to quantify the effects the piece of content has on consumers.
If you opt for user-generated content, quantifying can be a bit tricky. UGC is organic content and it’s quite difficult to track its impact across various platforms and all the different formats. UGC can sometimes spread like wildfire, but you can still check some parameters that indirectly tell you about its impact. Things like how much UGC about your brand is out there, how engaged users are with that content, and how it changes your conversion rates can be tracked, even if they’re not as straightforward as metrics you get from an influencer.
The Costs of Your Advertising
This one is pretty obvious – you need way more money for influencer marketing compared to UGC. Of course, the exact number will vary depending on what influencer you decide to partner with. UGC means free content when it’s created by regular social media users, but if you wish to obtain something a bit more professional from UGC creators, you will still have to pay – but this amount will be a lot less compared to the rate of an average influencer.
Additionally, we have to consider the scalability of your marketing efforts. With influencer marketing, it’s easy – pay more influencers, get more content, and end up with better results. The amount of UGC depends on how large your customer base is. Brands often use various tactics to encourage customers to create user-generated content – for example, they can create a branded hashtag and call users to post their reviews under that hashtag.
How Has UGC Impacted Influencer Marketing?
UGC is a marketing trend that perfectly highlights the need for authenticity and how much consumers want to see genuine impressions online. Influencer marketing can be authentic, but it’s not always – we’re sure everyone can name at least one influencer whose reviews they don’t trust. On the other hand, UGC is always authentic and raw – and both consumers and brands have recognized that. Recent data suggests that about 86% of consumers are more likely to trust a brand that shares UGC rather than collaborations with influencers.
So, the change in dynamics regarding these two forms of marketing is obvious. UGC is becoming more and more important, and brands are increasing their efforts to utilize it in their social media advertising. However, even though the concept sounds quite simple at first glance, it’s not so easy to implement, especially for new brands and small businesses.
Why is this the case? The main problem is that if you’re new to the business, you likely don’t have a large customer base – which means that you won’t have plenty of user-generated content online. As you build your reputation, this is likely to change, but new brands can hardly rely solely on UGC. In this case, influencer marketing would be a better approach.
What Are the Downsides of These Marketing Strategies?
Nothing’s perfect, and as you can see, both of these marketing formats have their downsides – UGC is difficult for new brands, while influencer marketing is not always quite so authentic. There are a few other problems you may run into with both formats. So, what are the possible issues you should look out for?
The Disadvantages of UGC
First, there is always a possibility of negative reviews – this could create a PR crisis that will require careful management. You also have to consider the source of content – sometimes, UGC can be created by unreliable sources that could potentially undermine your brand’s credibility. Lastly, remember that UGC comes with potential legal concerns about content ownership and that it requires the creator’s permission to use the content.
The Disadvantages of Influencer Marketing
The biggest concern of influencer marketing is the possibility of choosing an unsuitable influencer to represent your brand. Choosing someone to collaborate with is a decision that brands put a lot of thought into, and it’s not something that can be done overnight.
If you choose poorly, you risk damaging your brand’s reputation – not to mention that you’ll be wasting your money on an unsuccessful marketing campaign. Additionally, even if you choose wisely, nothing guarantees you the ROI that you’ve estimated – sometimes, a collaboration can flop. Nothing is promised when it comes to this form of advertising.
User-Generated Content vs. Influencer Marketing – What Should You Choose for Your Brand?
Now that you know all about these popular forms of digital advertising, which one should your brand choose? There are no strict rules or guidelines to help you with this decision – it’s something that each brand must choose on its own. Both UGC and influencer marketing have their pros and cons, and chances are that you’ll use both of these marketing approaches at some point.
Naturally, it’s always wise to have social media agency services by your side – expert marketers can help you find the right solution faster. Once you figure out what you want to do, an experienced social media advertising agency can come up with a plan and execute it efficiently.
Whatever You Decide, You’ll Need a Social Media Agency By Your Side – Made Online Can Help You
When choosing a digital advertising agency, experience is one of the key factors to take into account. Our team at Made Online has years of experience working with clients from a wide variety of industries – we have seen it all and know how to advertise any product efficiently. If you’re looking for skilled and efficient marketers, don’t hesitate to contact us. Let’s book a consultation to see what we can do for your brand!