Brands program user-generated content to get the word out

The Future. Brands (especially those in beauty, fashion, and food and beverage) are spending more of their social media marketing budgets on user-generated content — cheaper, lo-fi reviews from micro-influencers. With UGC videos also giving more creators a chance to earn money, UGC videos may blur the line even further between organic recommendations and paid advertising.

DIY commercials
According to Insider, here’s what is driving the change to UGC videos:

• The videos feel authentic and personal — two qualities that Gen Z responds to on TikTok and Reels.
• 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 big influencer.
• That’s because UGC videos mostly come from creators with small followings — a feature brands prefer because it’s more about the content being created than who is behind the video.
• Armed with several UGC videos, a brand’s product can trend by popping up on users’ For You page, which can send engagement and sales skyrocketing… and even lead to organic content.

Jessica Romaniuk, the Chicago president of ad agency Two by Four, said that her company’s clients have seen sales jump 20% since they started using UGC campaigns.

Individual agency
Creators are loving the trend toward UGC videos.

• It allows more creators to earn money across social platforms, with several reporting earning $5,000-$7,000 per month.
• It allows creators to make several UGC videos without oversaturating their profiles with the videos — UGC videos typically only exist on the brand’s page.
• But it also allows creators to make UGC videos on spec, hoping that brands will pick them up for paid promotions.

With seemingly everyone able to get in on the UGC craze, TikTok strategist Denver McQuaid said, “the days of Instagram perfection and extreme Facetune are mostly behind us.”