In the ever-evolving digital landscape, what used to work one day is often replaced by something new the next. The emergence of TikTok as a popular social media platform and the increasing need for constant video content has influenced how we create and consume online content. This shift has created new opportunities for brands to interact with their audience in a meaningful way and build trust, explains Madelene Ragno, founder of MADE. Marketing.

Recently, we’ve seen a noticeable shift from traditional influencer marketing as a primary marketing strategy to UGC and CGC.

User-generated content (UGC) and consumer-generated content (CGC) have now taken centre stage and it’s time for your brand to get its dancing shoes on.

4 reasons why UGC and CGC are taking on influencer marketing

1. Saturation and lack of authenticity

Over the past decade, we’ve seen the rise of influencer marketing and how this environment has been saturated with sponsored content. In turn, your customers are becoming increasingly aware of the commercial nature of influencer endorsements and can often view them as disingenuous.

The credibility and authenticity that once made influencers effective brand ambassadors is now being called into question.

2. Declining reach and engagement

Another factor contributing to the decline of influencer engagement is the decreasing reach and engagement rates of influencer posts. With the growth of social media platforms and the ever-expanding pool of influencers, competition for attention has intensified.

Algorithms on platforms like Instagram have changed, and organic reach for influencer content has decreased over time. The over-saturation of influencer-sponsored posts has also led to reduced user engagement, as audiences are fatigued by repetitive content.

Being created from the perspective of a real user or customer experience, UGC and CGC allow your audience to organically connect and relate to the seemingly ‘everyday’ person on their screen.

3. Rising costs and shifting priorities

Influencer marketing campaigns often come with big price tags. As the demand for influencers and their audiences has increased, so have their fees. This pricing model may not be sustainable or justifiable for every brand, especially for smaller businesses with limited marketing budgets.

UGC and CGC can be affordable and scalable options, as most creators develop content on a more suitable hourly or per-video rate.

It’s also common practice for influencers to enforce a time limit on the use of their content (e.g. three months or one year). Content creators are much more flexible, with many not enforcing time limits. In some cases, your UGC or CGC creator may even provide you with raw footage so you can create new content to use across all your platforms over and over again.

To keep your momentum going on social platforms, it’s important to regularly post video content. Instead of paying a premium for one video, working with multiple UGC or CGC creators is much more cost-effective to get more content (videos and images) at a lower cost.

4. Social proof and trust

UGC and CGC hold a unique advantage when it comes to building trust and social proof. Consumers tend to trust the opinions and experiences of their peers more than those of influencers, who are often viewed as paid endorsers.

UGC and CGC provide a platform for customers to share unbiased reviews, testimonials and user experiences, giving potential customers a more authentic and relatable perspective. This user-generated content carries a level of credibility that can sway purchasing decisions and foster a sense of trust in a brand.

All in all, user-generated content and consumer-generated content have the potential to provide brands with authentic, cost-effective strategies that can provide higher returns on investment, as well as create a new way to connect with and build your audience.

The advantages are hard to dispute, no matter how you look at it.

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