IGC vs UGC: which strategy for your e-commerce business?

Investing in traditional advertising is becoming more challenging due to the ever growing costs and the oversaturated market. Since the iOS 14 update, D2C brands have been forced to think outside the box, developing the most creative ways to advertise to their audiences. In an effort to be more creative while reaching the masses, they've discovered the power that IGC and UGC hold. Influencer-generated content and user-generated content have equally become the key elements to a successful marketing strategy that yields better results. And the reason for it? The content is much more relatable than a traditional advertisement. This advertising method has helped improve conversion rates and boost sales for digitally native vertical brands (DNVBs) looking for a way to make a name for themselves while up against the major competition.

Top-rated fashion brand Fashion Nova collaborated with female music artist Cardi B. in November 2018 with its "Party with Cardi" collection, which included a special event featuring the rapper and several other music artists, including Saweetie. It was so successful that items sold out within seconds! Not only did this mean major sales for the business, but it also led to a tremendous amount of organic user-generated content from those who managed to snag pieces from the event. In addition, since its successful collaboration with Cardi, the fashion brand has partnered with many other celebrities and mega influencers, including Teyana Taylor and Megan Thee Stallion. The brand has successfully built an empire by relying on influencer and user-generated content.

It's important to understand that IGC and UGC differ from one another, although both can bring tremendous value to your brand and business. Let's face it – influencer communities are often much more prominent. These people tend to have a massive following that occasionally consists of millions of people who care about their thoughts, feelings, and opinions, which is impressive. It's also great for brands that want to reach new people and target a massive audience. And when you choose to work with influencers, you will usually have more control over what they say in the content created, especially if you're paying them to do so. But UGC still has its perks. UGC is often cheaper and, at times, will cost you absolutely nothing.

Of course, you're probably asking yourself, "Which is better – user-generated or influencer-generated content?" The answer will depend on a few different factors, including the size of your business, what you sell, who you're trying to reach, and how much you can afford to spend.

What is Influencer-generated content and why you should do it

• Influencer-generated content is any content created by someone with a following of a minimum of 5000 people (usually much more than that).
• By the end of 2022, the influencer marketing industry will likely have a value of $16.4B.
• Instagram is currently the most popular social media platform used for influencer marketing.

Source: Influencer Marketing Hub

When using influencer-generated content to advertise to consumers, you have the ability to get your brand's name out there. These individuals have thousands and, at times, millions of people following them who will see the content they've created. When you have them creating content where they're saying good things about your brands, it leads to more web traffic that converts. People will want to buy the items they saw their favorite influencer(s) discussing on social media. If you aim to get more people interested in your brand, it's a good idea to reach out to influencers.

American Eagle might not be new to the fashion industry, but the brand is bringing life back to its products and gaining more sales than ever due to its partnership with popular social media influencer Addison Rae. The company used Addison Rae to advertise its new line of Mom Jeans, which resulted in thousands of regular TikTok users posting themselves doing try-on hauls. The genius approach has benefited American Eagle, enabling them to use both influencer and user-generated content to their advantage to strengthen sales.

💙 Bigblue Tip: By providing a branded experience for customers with the help of Bigblue, Nutrivita boosted delivery satisfaction by 95%. Improving the experience often leads to better reviews and organic user-generated content that helps brands grow. Focus on doing what you can to bring joy and excitement to your clients to receive more user-generated content than ever.

Influencer-generated content may be the method to choose if you:

• Don't mind sending out products for free or paying influencers to post about your brand and the different products you offer.
• Are interested in reaching a targeted group of people who will feel more inclined to buy from you if they see someone they like talking about your brand/products.
• Want to start connecting with a new audience and want to do so with the help of a mega influencer with millions of followers.
• Hope to get high-quality content carefully created by influencers that you can post in various places, including your website and other social media platforms.

What is User-generated content and why you should do it

• User-generated content consists of any content created by a regular consumer who says something about a brand or its products.
• The average consumer spends over 5 hours per day watching user-generated content.
• 60% of consumers believe that of all marketing content available to them, UGC is most authentic.

Instead of paying out of pocket to get people to make content for you as you'd normally need to do with influencer-generated content, user-generated content comes naturally. People are more likely to create videos and posts on social media about their experiences with a brand when it's a genuinely good one. If you can exceed expectations, customers will look forward to generating content about your products and sharing that content with others. The best way to exceed expectations? Offer high-quality products and an incredible unboxing experience that will leave a better impression on your customers.

💙 Bigblue Tip: Provide custom packaging like FROM FUTURE to offer a pleasant surprise to your customers. The company managed to boost buyer satisfaction by 89% within just four months, meaning you have the potential to do the same!

Need an example of a famous UGC marketing strategy? Si Si La Paillette uses FAQs to create viral videos on TikTok. These videos work wonders for the company for several reasons. First, they’re responding to important questions that consumers have and want the answers to before they buy. However, they’re also creating valuable, insightful content and connecting with more consumers, which benefits the brand.

Use Si Si La Paillette’s Strategy to Get the Content You Need

One thing you might notice when you first start posting to platforms like TikTok is that consumers often have questions. Use this to your advantage, answering questions with video content that broadens your reach and helps your brand get more views. If possible, have influencers replying to some of these questions with their own video content, which will boost views even more. By using this effective marketing strategy, you can spend less and still see incredible results.

Check out how Si Si La Paillette uses FAQs from consumers to create content that goes viral on TikTok

User-generated content is likely the best option for you to choose if…

• You want to build a name for your brand but don’t have a big budget.
• You’re confident in the quality of the products you provide to your consumers.
• You’re willing to take steps needed to enhance the experience, such as improving the unboxing experience.
• It’s your goal to appear as relatable and authentic as possible when connecting with the consumers.
• You don’t care nearly as much about growing quickly as you do about building a solid community of loyal customers.
  

IGC or UGC: When to Use One or the Other

The decision may be tough when deciding which to use, user-generated or influencer-generated content. Both have their pros and cons and can help brands of all sizes make a name for themselves, even dealing with a lot of competition.

Of course, it comes down to what you can afford, working within your budget, and using what you feel will work best for your business model. Most importantly, it helps to know that you can use a little bit of both in your marketing strategy to achieve the best possible outcome. Plenty of brands are already combining both options to get the greatest return on their investment while boosting sales.

Check out this list of some of the pros and cons of each type of content to help you decide which to use for your next marketing campaign.🔽🔽🔽

✅ Pros of IGC

• With influencer-generated content, it's easier than ever to reach a larger audience because these individuals have thousands or even millions of people following them and paying attention to what they post.
• You have the option of choosing between different influencers. There are many of them, including nano, micro, macro, and mega influencers, willing to post about brands.
• Influencers with higher engagement rates who post about your brand can help you increase your follower count and boost traffic to your website, which results in more sales!

❌ Cons of IGC

• Engaging well-established influencers is not always easy, so reaching out to them directly might not work.
• It can cost you money to get influencers to create content about your brand and the products you sell. Some charge more than others!
• Some influencers are a bit controversial. It's important to choose the influencers you plan to work with wisely because you don't want to deal with the drawbacks of any controversy they might cause.

✅ Pros of UGC

• User-generated content is recognized as the most relatable type of marketing in existence. When people have someone like themselves talking about a product they love, it feels more like a conversation with a friend or family member.
• The content they create can help you gain more visibility for your brand. In addition, it can make your brand seem more authentic.
• When searching social media for different products, it makes it easier for consumers to come across content about your brand. As a result, they may choose to visit your social media pages or even check out your website to see what you're selling.

❌ Cons of UGC

• You're not guaranteed content from consumers, even if they loved the experience you provided to them.
• Not all user-generated content created is positive. For example, consumers might say something they dislike about the brand.
• Not all creators have large followings, so the chances of getting millions of people to see the content are smaller. However, it can still happen, especially on a platform like TikTok, where some of the most random things go viral (Chicken salad, anyone?)

💙 Bigblue Tip: Use a combo of user-generated and influencer-generated content to bolster your marketing efforts. Search for influencers with decent followings who typically share their thoughts and feelings about brands like yours! Connect with them and continue to provide an incredible experience to all to improve your chances of getting more user-generated content created.