The main difference between UGC and traditional influencing is that UGC creators create and deliver to businesses without the obligation to post it on their personal channels. With influencers, the company usually pays for both content and exposure to the influencer’s audiences. Brands only have to pay around $125-$500 for the typical UGC video, a major discount from the $20,000-$30,000+ needed to book a macro influencer. This difference creates a larger network for brands to choose from, at a much lower cost.
Despite most UGC creators not being required to post on their personal accounts, most do anyway. Smaller creators often want to build their portfolios and their following, so it’s essentially a win-win for the creator and the brand. Here are four main takeaways as to why you should consider UGC for your next promotion strategy.
Diversification: UGC creators come from various backgrounds and industries, providing a wider range of perspectives and voices for brands to partner with.
Authenticity: UGC creators often have built a following organically and have a more genuine connection with their smaller audience, leading to more authentic and trustworthy advertising.
Cost-effectiveness: Partnering with UGC creators can be more cost-effective for brands compared to working with traditional influencers with large followings.
Data Insights: UGC campaigns can provide valuable data and insights into the behavior and preferences of target audiences, allowing brands to refine their marketing strategies.
Looking toward the future, there’s an argument to be made that UGC creators will minimize the need for in-house marketing services. Todd Kunsman of everyoneSocial found that UGC-based ads get 4x higher click-through rates and a 50% drop in cost-per-click than average. This means that brands could cut down on paid search and paid social advertising, thus allocating their budget elsewhere.
In conclusion, UGC creators have changed the influencer marketing landscape and will continue to do so, by providing a more authentic, relatable, and cost-effective form of marketing. Nevertheless, traditional influencers still have something irreplaceable; their large networks. Despite UGC being much more cost-effective, it may never fully replace the value of mass media and outreach that traditional influencers provide.
To learn more about UGC creators and consider them for your brand, check out these resources below: