User Generated Content: Everything You Need to Know for Ecommerce

user generated content, UGC, consumer generated content, ugc marketing, ugc photos, ecommerce tips

Visual commerce might seem like yet another buzzword invented by clever marketers to sell the idea that your online store needs more visual content. Except there’s more to it. To understand why visual commerce matters, you need to have a look first into user generated content. We rarely buy anything nowadays before consulting social media. We watch video reviews on YouTube, browse photos on Instagram, and search consumer reviews to make sure we’re getting our money’s worth with each purchase. All this is user generated content.

Here’s a roundup of stats that show growing importance of user generated content for ecommerce.

User Generated Content Is Everywhere

User generated content started getting momentum in 2005  when social media platforms made sharing messages, photos, reviews, and videos easy and convenient.

UGC Is Popular Because It’s Trustworthy

  • 92% of consumers worldwide say they trust word-of-mouth more than any kind of advertising.
  • According to a report by Forrester, 70% of consumers consider product and brand recommendations from their social circles trustworthy. 46% trust online reviews posted by other customers. In comparison, only 10% trust banner ads on websites.
  • 70% of consumers place reviews by other customers above professionally written marketing content.
  • Customer-made reviews about a product are trusted 12x more than ads.
  • When looking for information about a product, 51% of US consumers trust user generated content more than other information on a company website.
  • It is estimated that influencers represent one-fifth of the consumer population and influence purchases of 74% of the population.
  • Millennial consumers trust information from user generated content 50% more than information from mainstream media sources.
  • 71% of consumers say that user-generated product reviews make them feel more comfortable buying a product.

UGC Works in Convincing Shoppers to Buy

UGC Is Content Magnet for Millennials

  • 84% of millennials say that user generated content on a company website has some influence on their purchases. The same thing is valid for 70% of Baby Boomers.
  • 86% of millennials say that UGC is a good indicator of a brand quality.
  • After researching purchases online, 52% of millennials are more likely to buy online than in physical stores (48%).
  • 51% of millennials say that consumer-made reviews on company sites have a greater influence on what they buy than recommendations from friends and family.
  • Millennials are 3x more likely than Baby Boomers to search product recommendations and what to buy on social media.
  • 64% of millennials feel that companies should offer more ways for them to share feedback about products and brands online.
  • 87% of millennials appreciate the authenticity of UGC and prefer when companies don’t edit reviews for grammar and spelling.
  • 65% of social media users ages 18-24 take into consideration information about products on social media before buying.
  • Millennials (age 25 and above) and Gen X consumers contribute to 70% of all user generated content online.
  • 71% of millennials engage with social media and user generated content daily.
  • Millennials find UGC 35% more memorable than content from mainstream sources.
  • Millennials report that UGC is 20% more influential in their choice of purchases than other media.

UGC is Most Effective In Visual Form

How UGC Affects Purchases

  • 48% of consumers say that UGC is a great way to discover new products, brands, and retailers.
  • 41% of shoppers need only 1 to 4 user-generated product reviews to be influenced to buy.
  • 69% of consumers trust user-generated reviews about clothing, household goods, and personal care products. 68% trust reviews about computers and electronics. 64% trust reviews for children products. Over 50% trust reviews on healthcare products, children products, and food.
  • More than 59% of millennial shoppers reach out for user generated content before buying major consumer electronics. 53% search for it before buying major appliances, 46% before buying mobile phones.
  • Demand for user generated content in the live gaming category grows 122% year over year.
  • The most influential user-generated product reviews feature customer personal stories (80%) and product pro’s and con’s (71%).
  • 59% of shoppers use smartphones at home to view user-generated product reviews and 54% use laptops.
  • Sites featuring UGC see 20% increase in repeat visits and up to 90% increase in the time spent on the site.

Why Goodvidio Is a Great Solution for Visual UGC

Goodvidio solves these problems for marketers. Goodvidio visual commerce platform allows brands and retailers to collect, curate, publish, and optimize user-generated video to grow online sales.

Find out how you can use Goodvidio to increase your ecommerce sales with visual UGC.

 

About Miljana Mitic

Miljana is Content Marketing Manager at Goodvidio. She has a cool PhD in social media marketing and writes about trends and best practices for product videos, UGC, online retail and visual commerce. Fascinated by YouTube pop-culture and startups.

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