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10 Reasons You Should Invest in User-Generated Content


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User-generated content is the next big thing in e-commerce. Here are 10 important facts about UGC you should know.

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10 Reasons You Should Invest in User-Generated Content

  1. 1. Reasons You Should Invest in UGC Artifacia 10
  2. 2. UGC is Huge and Everywhere1 Pinterest pin creation- 75% Twitch video broadcasts- 83% Wattpad stories-140% Airbnb reviews-140% • User-generated content on the web is increasing dominantly year-over-year (Kleiner Perkins Caufield Byers) Artifacia
  3. 3. • 25% of search results for the world's 20 largest brands are links to user-generated content. 
 (Kissmetrics) • 350 million of photos are uploaded daily on Facebook and 80 million on Instagram, along with 432,000 hours of videos on YouTube. 
 (Offerpop) Artifacia
  4. 4. Millennials Love UGC2 • 86% of millennials believe that user-generated content is a positive indicator of the quality of a brand or service. (Bazaarvoice) • 51% of Millennials say that consumer-made reviews on company sites affect their buying decision. (Bazaarvoice) Artifacia
  5. 5. Businesses are Using UGC3 • 86% of businesses now use user-generated content in their marketing efforts. 
 (Semrush) • 70% of businesses are creating more content than they did a year ago. 
 (Semrush) Artifacia
  6. 6. UGC Affects Buying Decisions4 • Millennials find user-generated content is 20% more influential than other media sources like TV, newspaper, and magazines, in taking buying decisions. 
 (CrowdTap) • 82% of shoppers consider user-generated content extremely important in their buying decisions. 
 (3dcart) Artifacia
  7. 7. UGC Increases Engagement5 • Brand engagements rise by 28% when consumers are exposed to both professional content and user-generated product video. 
 (comScore) • User-generated videos on YouTube get 10x more views than the content uploaded by brands.
 (Emarsys) • Brands see 25% increase in conversions when user-generated photos are used instead of professionally made product shots by brands. 
 (Source) Artifacia
  8. 8. Using UGC on Your Website6 • 84% of millennials say that user-generated content on a company website has some influence on their purchases. (Bazaarvoice) • Only 9% of top 250 consumer brands place user-generated content directly on their product pages. 
 (Clickz) • Websites which feature user-generated content see 20% increase in repeat visits and up to 90% increase in the time spent on the site. 
 (Offerpop) Artifacia
  9. 9. Using UGC in Ads and Campaigns7 • Facebook and Instagram ad campaigns using user-generated photos have seen up to a 50% increase in click through rate, over the campaigns using brand-created images, leading to a 5x Return on Ad Spend. 
 (Instagram partners) • Online stores that use UGC in advertising, see 4x higher 
 click-through rates and 50% drop in cost-per-click. 
 (Shopify) Artifacia
  10. 10. How UGC Affects Different Product Categories8 • According to a research, UGC can improve conversion rates 6.4% for clothing, 2.4x for jewelry, 1.7x for footwear and 1.6x for products in beauty and consumer electronics verticals. (Clickz) • 69% of consumers trust user-generated reviews about clothing, household goods, and personal care products. 
 68% trust reviews about computers and electronics, while 64% trust reviews for children products, while over 50% trust reviews on healthcare products, children products, and food. (Adweek) Artifacia
  11. 11. UGC and Conversions9 • Conversion rate goes up to 4.6% when consumers see UGC while shopping and conversion rate can spike up to 9.6% when they interact with user-generated content. 
 (Clickz) • When visual user-generated content is present on shopper’s path to purchase, conversion rate increases up to 10%. 
 (Offerpop) Artifacia
  12. 12. UGC Builds Trust10 • According to a report by Forrester, 70% of consumers 
 find product and brand recommendations from their social circles trustworthy and 46% trust online reviews posted • by other customers. 
 ( • 70% of consumers trust reviews written by other customers more than professionally written marketing content. 
 (dmnews) • Consumers trust customer-made reviews about a product 12x more than promotional marketing content. (CIO) Artifacia
  13. 13. • 43% of people are more likely to purchase a new product when they have learned about it through social channels or from friends and family. 
 (Neilson) • Millennials trust user-generated content 50% more than content generated by brands. 
 (Smart Blogs) Artifacia
  14. 14. Artifacia is an award winning technology startup founded in 2015. With a presence in India and the US, it works with fashion brands and retailers to help them improve user experience and increase conversions with its innovative product discovery solutions powered by Artificial Intelligence technology. If your business is looking for new ways to use user-generated content, our in-image commerce feature can help you. Just send us a demo request here or drop a line to Artifacia@artifacia About Artifacia