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What is UGC & CGC and why your business needs to embrace this digital strategy

  • Written by Marketing agency owner, Madelene Ragno

In the dynamic realm of the digital landscape, trends come and go at a rapid pace. The rise of TikTok as a highly popular social media platform, accompanied by the growing demand for continuous video content, has had a huge influence on the way we both create and consume online content.

Resulting in a shift that has created new ways for brands to connect meaningfully, and the adoption of what we now know as User-Generated Content (UGC) and Creator-Generated Content (CGC). Both of which have now taken the spotlight, demanding that your brand embraces a greater digital presence, in order to avoid being left behind.

But what is UGC and CGC?

UGC refers to any content that is created and shared by users or customers of the brand themselves, rather than being produced directly by the brand. This includes anything from user-generated videos and images to social media posts, reviews, and testimonials. CGC, on the other hand, focuses specifically on content generated by creators that promote or engage with a brand. Such as product reviews, unboxing videos, and personal stories related to the brand.

UGC and CGC is essentially the modern day word-of-mouth referral. With consumers finding it 9.8x more impactful than influencer content when making a purchase decision.

Brands are now seeing these advantages from their end, with 72% believing that UGC helps them engage customers and build brand trust. As well as 87% saying that they have implemented UGC into marketing to build a feeling of authenticity with their audience.

Here are a few reasons why your brand should consider embracing UGC and CGC as well.

Authenticity and Trust:

UGC and CGC provide an authentic and genuine perspective on your brand and your products/services. The personal experiences and opinions shared by creators helps your audience relate and connect. They’re more likely to feel that content from their peers is genuine and trustworthy, in comparison to influencers or traditional advertising.

Enhanced Engagement and Reach:

UGC and CGC have proven to be highly engaging and shareable. When users and content creators share their experiences, reviews, and testimonials, they become brand advocates and actively promote your products or services to their networks. This organic word-of-mouth marketing can significantly expand your reach and attract new customers. UGC and CGC also encourage social interactions and conversations around your brand, driving higher engagement rates and creating a sense of community.

Cost-Effective Marketing:

Instead of investing in creating brand content from scratch or paying high fees to influencers, you can leverage the content created by your users (customers) and content creators. This not only saves money, but also allows you to produce a diverse range of content, capturing different perspectives and experiences. Some users and content creators may even contribute UGC and CGC voluntarily, reducing the need for large marketing budgets.

Creativity and Variety:

UGC and CGC bring a diverse range of content formats and creative ideas to your digital strategy. Users and content creators have unique styles and perspectives, resulting in a varied content library that can be re-edited and repurposed across multiple channels.

Stronger Brand-User Relationships:

Users and content creators feel valued when their content is recognised and shared by the brand, leading to stronger brand-user relationships. UGC and CGC provide an opportunity for your customers and content creators to actively participate in shaping the brand narrative, fostering a sense of ownership and loyalty. Engaging with this content also shows that your brand listens to its community and values their contributions, leading to long-term customer satisfaction.

Not sure where to start? Try reaching out and engaging with your customers on socials, contact some creators or speak with an agency that specialises in content creation (like MADE.).

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