‘Tis the season to be jolly as the last quarter of the year is here. It’s usually the most joyous period of the year for most, but the most stressful and busiest period for almost every marketer. As consumers eagerly find things to spend on for Black Friday, Cyber Monday, Boxing Day, and the giving season, they also get bombarded by ads and offers from marketers trying to earn their business, making them more and more skeptical and overwhelmed. In fact, Edelman found that 70% of consumers actively avoided ads, likely further amplified in the holiday season.
Consumers are also being more intentional about their purchases, with 73% of holiday purchases shown to have been researched according to Google. Statista also found that 55% of consumers found reviews to be helpful in their purchase journey.
The Consumer’s Distrust of Ads
It’s widely accepted that a normal person sees around 4000 to 10,000 ads in a day across all channels and mediums. This increases significantly in the holiday season, with all of the generic marketing, promotions, offers, and discounts marketers put out that consumers start tuning out and avoiding them. Consumers have become wary of traditional ads given their lack of authenticity and relatability. Consumers aren’t easily influenced by unique selling points highlighted by brands that can be thought of as skewed or disingenuous
This holiday season, marketers focus on selling; however, it may be time to shift focus and pivot towards authenticity. Enter User-Generated Content (UGC).
Cutting Through the Noise with UGC
UGC is the modern-day equivalent of word-of-mouth marketing. It’s content created by real people, acting like a review, in real-world settings, that don’t feel like an ad. Stackla found that UGC is 9.8x more authentic than traditional influencer ads and that 90% of consumers have their purchasing decisions influenced by UGC creators, driving a 144% lift in conversion rates and a 162% increase in revenue per visitor.
The strength of UGC lies in its authenticity and relatability towards consumers. Tuckernuck, for example, a Canadian-based e-commerce store selling apparel, saw conversions increase by 90% by leveraging a UGC gallery on their website and pages. It’s also more cost-efficient than influencer marketing, with a 30s video ranging from $100 to $250 depending on the creator and usage rights, as per Embold.
The most effective UGC campaigns never ask customers to do something they don’t typically do, but rather encourage them to do it. Hashtag contests, particularly for the holiday season, are typically the fastest way to gather volume and encourage content creation, with the caveat of having an incentive like a prize or an opportunity to be featured. In addition, email marketing retargeting customers to provide reviews is also an effective way to collect content, and resulted in 60% of reviews among businesses, showing the importance of gentle nudges towards customers. Lastly, third-party providers like Embold make it easier for businesses to gather UGC from trusted creators that can be used for organic and paid campaigns
Once there’s enough content, businesses must find a way to amplify it across all channels. Social media channels are the main ways to expand the reach of these assets, either organically or through paid channels. The platforms see a 28% higher engagement as compared to traditional brand-created content, highlighting its strength in improving CTRs and lowering costs. Air France repurposed UGC content in their marketing campaign and saw an 11% higher CTR and a 21% improvement in CPC compared to traditional branded ads.
Some Legal Caveats to Consider
As with the current digital landscape, there are legal and ethical responsibilities marketers must take note of to avoid financial and reputational damage.
UGC is protected by copyright laws and, therefore, requires marketers to ask for permissions, get explicit, written consent, and give credit and respect to the creator. A specific and formal process must be followed to ensure creators are encouraged to create content and help build up loyalty within the brand.
Closing Thoughts
In an era of deep-seated consumer skepticism, UGC stands out as an essential pillar of any successful marketing campaign for the holiday. Its authenticity, relatability, and simplicity build trust among your audience and encourage sales and transactions.
Additionally, UGC holds a very long shelf life, being organically made. These can be repurposed year-round, for succeeding holiday periods, and can even be used as inspiration in generating brand-generated content.
In a world full of noise, the most powerful and enduring asset a brand can have is the collective voice of its customers.
References:
https://www.qrcode-tiger.com/user-generated-content-statistics
https://www.bazaarvoice.com/blog/the-complete-guide-to-ugc/
https://www.powerreviews.com/holiday-marketing-strategy/
https://www.embold.co/blog/ugc-or-influencer-marketing-know-the-difference-before-you-choose