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User-generated content beats the conventional ads in building brand loyalty and customer engagement

User-generated content (UGC) and ads have become the norm for many businesses. In particular, UGC has a larger audience compared to traditional media. UGC can be a review, podcast, testimonial, or audiovisual content which is created by people instead of brands. Hold on, let’s make it simple. You usually watch reviews of new cosmetics and products on YouTube and Instagram before buying them from the market. So, the content which is created by the TikTokers, or YouTubers is a reflection of user-generated content.

Consumer Acquisition which is a well-known marketing service company conducts an analysis of conventional advertisements and social media ads and the outcome is anticipated. On the corresponding topic, UGC ads beat conventional ads by 20-50%, particularly when it comes to gaining consumer attention.

UGC ads help brands to reach consumers more efficiently. With the targeted approach, brands of all sizes can hook consumers to their products and services in an unprecedented manner. UGC campaigns can drive more users’ attention to the businesses and produce positive business results. According to an infographic (featured below), User-generated content achieved 12x consumers’ engagement towards the brands and outperforms other native advertising types. Along with that, around 66% of brands also stretched their budget for UGC campaigns. These brands are using social media platforms to gain more engagement by using word of mouth approaches. 96% of brands are showing their products on Instagram stories and posts to reach the maximum number of people and the icing on the cake is, 77% of the firm-owners have set aside social influencer marketing budgets because influencers have a huge audience, and they can persuade others to buy the products based on the recommendations.

Interestingly, after Facebook and Instagram, TikTok seems to reach a 25% share in the advertising market after two years. User-generated ads on TikTok are far better than other social media channels at 10% ads responsiveness.

To conclude, a customer-centric forum encourages the customer toward the brand. UGC allows customers to take part in a brand’s development instead of being a viewer. This helps in building brand loyalty and opens up a door for heart-to-heart talk between brand and customer. When brands share customers’ reviews on Instagram stories, it works to develop and deepen business relationships ultimately.

Among all the ads, there is a winner ad that surpasses all the other ad concepts. A top-scoring ad lasts for ten weeks before it burns out. However, the statistics also reveal that on average 85-95% of advertisements fail to exceed the best ad in a portfolio.
Read next: Consumers Prefer Email for Loyalty Programs According to This Study

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