UGC (user-generated content) is what consumers use to see the benefits of products from the perspective of their peers. This includes reviews, social media hashtags, and product demonstrations. We asked 401 Americans which type of content, branded or user-generated, would drive them to buy. User-generated Instagram posts are more effective in driving sales than UGC on YouTube and Twitter.

During COVID-19 stay-at-home orders, many people spend their idle time scrolling through photos of family and friends on Instagram Stories.

People can easily swipe past sponsored content, even though companies spend a lot to produce and promote it on social media. Many companies now hire customers to manage their advertising using user-generated material (UGC).

UGC is social proof that a product’s worth buying and using. User-generated content, such as product reviews, photos, and demonstration videos, can help businesses win overvalued customers.

Not only does it reach more people but it also saves money for businesses. Companies can still maintain a steady stream of promotional content even if they have reduced their marketing budgets due to the COVID-19 economic downturn by outsourcing to customers or users.

We asked 401 Americans to choose between a brand-generated or user-generated image. User-generated content on Instagram is more likely to result in a purchase than UGC on YouTube and Twitter.

Our findings

• Over half of the respondents chose to use user-generated images from Starbucks (61%), and Aerie (60%). This illustrates the potential for user-generated content to drive sales for businesses.

• Only 30% said that a user-generated Instagram posting from Getaway House would make their purchase. This illustrates the limitations of Instagram’s UGC.

• 71% of people prefer a branded YouTube video by subscription box FabFitFun over a user-generated unboxing. YouTube UGC works best when it includes products of multiple brands.

• A majority of people prefer direct tweets from Netflix to user-generated tweets (68%) Businesses looking to find more Twitter content can benefit from user-generated content.

People prefer some user-generated content on Instagram

Do you feel like your life is a series of Instagram scrolls during COVID-19? 

The benefits of a product to a consumer are what makes user-generated content successful, and not the promotion of a specific brand.

The example from Aerie shows a customer enjoying a swimsuit by Aerie. The brand image shows a model relaxing by a pool in a shot that appears staged.

Aerie, a brand committed to body positivity activism, features images of unretouched models on its website. This brand image was extended to the #AerieREAL campaign in 2014, where customers are encouraged to take photos wearing Aerie merchandise.

Aerie’s user-generated content campaign is especially effective because it maintains a consistent brand image. This UGC strategy and unaltered models make Aerie’s brand authentic and easily accessible.

Starbucks shares user-generated content on Instagram. Starbucks has a near-universal brand recognition that makes it easy to share user-generated content with a wide range of people.

The majority of people prefer Starbucks’ user-generated content (61%) to its branded content (39%).

Starbucks’ #RedCupContest is a popular example of user-generated content.

Customers can use this hashtag to buy and share holiday cups.

Users-generated images are therefore already a part of the Starbucks Instagram account. Starbucks has the advantage of brand recognition and familiarity with its customers when it posts user-generated content throughout the year.

Instagram does not inspire all user-generated content

Brands should be careful about how they use UGC on Instagram. Sometimes high-quality images may be confused with branded content.

Users who create images that are too similar to branded content on platforms like Instagram will be distrusted. This could lead to the image being perceived as fake and unauthentic.

70% of respondents preferred Getaway House’s branded content over this user-generated photo (30%) shared on the company’s Instagram account.

An example of Getaway House’s user-generated image includes a caption that describes the customer’s experience with the company.

The brand’s promo image shows a Getaway House vacation house standing alone in a wooded area. Although it’s a very high-quality photo, it looks almost as if it was taken with an iPhone.

This shows that Instagram has some limitations in repurposing user-generated content.

In 2019, 39% were Instagram users who had more than 15,000 followers. They are therefore highly sensitive to advertisements that claim to be authentic content.

Although the woman in Getaway House’s photo isn’t an influencer, her glowing endorsement for the company in the caption might make some people suspicious as they casually scroll through Instagram.

People are less likely to make a purchase from user-generated content on YouTube

Before you commit to buying a product, do you want to see how it feels and looks? YouTube user-generated content shows curious customers details about a product beyond the information listed on a product’s page.

YouTube unboxing videos and product demonstrations get huge views. Google claims that the amount of people who have watched unboxing videos on YouTube is more than the time it takes to watch the romantic comedy “Love Actually” 20,000,000 times.

A branded video from the subscription service FabFitFun was preferred by most people. Only 29% said that a YouTube video created by the company would motivate them to purchase.

Demos and product videos are similar to reviews – they can be used to validate purchases and assist buyers in their buyer journey.

The product video should only show one product and not compare it to other products. However, it is merely a promotional piece that provides information about a brand’s product.

YouTube videos that are perceived as advertising can be very sensitively received by consumers. Influencers are often sponsored by companies to post positive reviews about their products.

Kelly Shahbazian, a beauty influencer, has uploaded “Product Battle” videos to YouTube. They are an excellent example of user-generated content that highlights a brand’s advantages over its competitors.

Shahbazian shows two curly hair products side by side in this video. In the video description, she assures viewers that the post isn’t sponsored.

Brands need to understand where their YouTube audience is at the end of the sales funnel. For example, if their audience is not primarily YouTube users, they might not be as open to information in unboxing videos that are intended to make a purchase decision.

Consumers Search for Branded Content on Facebook More Authentic

Twitter’s short content and viral hashtags show businesses what is popular among their audience. However, reposting content from the audience might not be as well-received by users as Instagram.

A majority of people (68%) believe that Netflix’s original tweet on the show “Selling sunset” is more likely to get them to buy than Alex Goldschmidt’s Twitter (32%).

Netflix uses its social media accounts for buzz about original content and content by other companies.

Netflix’s Twitter strategy might not require an authenticity boost from user-generated content. But what about other companies? Is it worth the effort for smaller businesses to use user-generated content on a textual site like Twitter?

Vinay Amin, CEO of Eu Nature, a nutrition supplements company, stated that while people trust UGC, they sometimes prefer to hear directly from the horse’s mouth. UGC is subjective and opinionated and has its place.

Amin concluded that if a company is a bigger brand like Netflix, users might prefer to receive updates and promotional content through the company account. This makes user-generated content less effective.

To maximize the reach of their content online, companies can use content from Instagram to repurpose.

Instagram is more popular than other channels for user-generated content

Companies using social media to advertise their products can use user-generated content as social proof.

Instagram is a popular social platform for user-generated material. UGC on Instagram is very popular. However, companies need to ensure that their posts are not too commercial.

YouTube is home to customer reviews and product demonstrations. However, this type of user-generated content is less effective in driving sales if the video shows the product alongside other products.

Companies can easily retweet or share user-generated Twitter content. Consumers looking to purchase can also use tweets as social proof.

For maximum impact, companies should invest in user-generated Instagram content strategies.

About the Survey

Only 42% of respondents identified themselves as females, 39% as males, and 19% refused to identify themselves.

One-fifth (11%) of respondents are between 18-24 years old, 18% are between 25-34 and 19% are between 35-54 and 55-plus, 13% are over 55, and 21% are not able to be identified.

Respondents come from the South (36%), Midwest (27%), West (23%), and Northeast (17%).