May 14th, 2020

Urban Cvek

CEO

Why UGC Performs Better on Facebook Ads

Facebook and Instagram are human networks that work best when people are speaking to people. 

What is UGC

User-generated content, or UGC for short, is an amazing asset for brands and businesses looking to grow online. It is a term for a type of photos and videos that are created by real people rather than by professional photoshoots. UGC is not created in the studio with perfect lighting, but it has some flaws of real people and that’s why it looks more authentic and eye-catching to social media users. As this content looks native to Instagram and Facebook, those creatives result in higher engagement.

There are different ways that brands can generate UGC:

  • From their customers,
  • From influencer marketing which can be as simple as an influencer tagging a product in an Instagram Story, or a Youtube video featuring a brand's product,
  • By hiring real people who will create authentic content for them, instead of renting a studio and doing high budget photoshoots

You can order on-demand User Generated Content on Influee where you’ll have a constant stream of new creatives created by authentic creators. Influee operates a network of curated creators that will create the content that will best fit your brand.

Some of the UGC benefits are:

  • More trustworthy content as it shows that people are happy to use brand’s  products
  • More relatable content that is native to Instagram and  Facebook
  • Ability to generate great content for your own social media use and advertising
  • Building a loyal customer base and community
  • Driving visitors to your site with a strong intent to purchase
  • Expanding social media reach
  • By watching what creators are sharing, brands are able to get a better understanding of their target market
  • Especially for small businesses, taking out ads is most likely to be expensive. UGC, when done effectively, is relatively low to no cost.

Generate Social Proof With UGC

A personal recommendation is the gold-star of product marketing.

Consumers are considerably less passive than they used to be when it comes to advertising. They’re now more active in the decision making, who they listen to, and who they choose to buy from and engage with. 

Just think about it - When it comes to making a buying decision, what would you trust more: another sales pitch from the brand or genuine advice from a buyer who has used the product? 

Let's look at some statistics:

  • Consumers are 2.4 times more likely to view UGC as authentic and engage with it compared to content created with traditional photoshoots. 
  • 55% of  consumers  trust UGC over any other form of marketing, making it a way to boost your sales and improve brand loyalty. 
  • 51%  of millenials say that UGC from strangers is more likely to influence their purchase decisions than recommendations from friends, family or  colleagues

Authenticity is extremely valuable for consumers as it provides proof of the quality of products and increases the credibility of the brand. As UGC is perceived trustworthy, it is consequently also more engaging. Besides that, it also gives a potential customer a great understanding of what they will be getting when buying a product. Potential customers will, therefore, most certainly eliminate any worries of not knowing what they will actually receive.

 

Take advantage of UGC in your ads

Imagine checking Facebook or Instagram in the morning. Besides some amusing photos of friends, there’s nothing really interesting. Ads, ads, and even more ads. People are tired of seeing the same studio photos that don’t attract their attention. They are becoming reluctant to even click on the ad.

To get potential customers’ attention, you need to show them something interesting and relevant. This is where UGC comes in. UGC is native to Facebook and Instagram, and that’s why it performs great for the ads. 

UGC posts that are shared to social media have a 28% higher engagement rate than standard brand posts. Besides that, also 85% of users say visual UGC is more influential in their decisions than brand-generated photos or videos. That’s why many marketers consider UGC as content marketing gold.

 

Example from Fillipo Loretti

Let’s take an example of Filippo Loreti, one of our clients, to see how they’ve reduced advertising costs with the use of UGC. 

Filippo Loreti saw a substantial improvement in CPC and CPA by using UGC in their Facebook and Instagram Ads: 

  • 57% Lower CPC - User Generated Content has a 28% higher engagement rate than standard studio shoot brand content.
  • 18%  Lower CPA - User Generated Content serves as social proof, giving the consumer reassurance about the product and enticing a purchase.
  • 3x Times more tests - With all this fresh content on hand, Filippo Loreti is able to test 3x as much Ad creatives as before.

Click here to read the full case study of how Filippo Loreti scaled its content creation using Influee.  

Conclusion

If you’re looking to improve the performance of your ads, then you should definitely implement UGC. UGC campaigns produce satisfactory results making them a key player in the marketing of products and services. Well-known brands continue to consider this type of marketing strategy as it’s proven to be effective in achieving target goals.  The same should be done by all direct to consumer brands in order to get closer to their potential customers.

Stay on Top of Your Instagram Game

Daily tips, Instagram trends, Influencer of the day, Q&A-s with other creators and amazing content from our users. Stay on top of the biggest Instagram trends and get a chance to be featured.