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Writer's pictureDaniel Budai

Influencer Marketing vs. User Generated Content: Where to Spend Your Ad Money In 2024

In 2024, the buzzword for brands is 'content-first.' Navigating through the crowded landscape of social media content, influencer partnerships, and user-generated content (UGC), can make your marketing budget feel stretched thin. Although influencer marketing has long been favored, rising consumer skepticism begs the question: does it still offer the best value for your marketing dollar?


Influencer marketing isn't resonating as it once did. A survey by Entribe reveals that over half of consumers, about 51%, simply scroll past influencer ads. Even more concerning is that 30% of people have developed a strong dislike for influencers, seeing them as untrustworthy. Additionally, findings from The Drum show a stark decline in trust, with only 10% of consumers believing the content posted by influencers. This downturn points to a growing disconnect between influencer-driven content and consumer trust.


Why Influencer Marketing might not be the best value for your money:

  • Transparency Issues: Sponsored posts are often required to be labeled as such, which can immediately reduce trust before content is even consumed.

  • Over-Saturation: Many users feel overwhelmed by the sheer number of influencer endorsements on their feeds.

  • High Costs: Securing top influencers can be expensive without guaranteeing a corresponding return on investment.

  • Diminishing Returns: The effectiveness of influencer marketing is waning as consumers grow more skeptical of scripted and polished ads.


Given these challenges with influencer marketing, the move towards user-generated content (UGC) appears not just sensible but necessary. Unlike content driven by influencers, UGC is perceived as more authentic and trustworthy. It not only garners more interaction but also fosters a sense of community around a brand. Moreover, encouraging the creation of UGC can significantly reduce marketing expenses while boosting campaign effectiveness.


6 Ways To Build More User Generated Content 


If you're just starting out with user-generated content (UGC), you might wonder how to get people to talk about your brand or endorse it organically. Unlike influencer marketing or paid PR, where you can directly approach people for endorsements, fostering UGC requires a more multi-pronged and organic approach. Here are some effective strategies to encourage UGC and build a community around your brand:


1. Strong Referral Programs: Implement programs that reward both the referrer and the referred. Using platforms like Referral Candy can help streamline this process, making it easier to track referrals and ensure that both parties receive their incentives. This not only promotes your brand but also encourages customers to share their positive experiences with others.


2. Solicit Reviews: One of the simplest ways to generate more UGC is by asking for it. Encourage your customers to leave reviews after their purchase or interaction with your service. Make the process as easy as possible, perhaps with follow-up emails or a prompt on your website after checkout.


3.Creative Contests: Engaging your audience with contests is a great way to encourage them to create content that features your products. Take a cue from Starbucks and their annual #WhiteCupContest. In this contest, Starbucks invites customers to doodle on their plain white cups and share their creations on social media. The prize? A chance to win a $300 gift card and the possibility of having their design featured on a reusable Starbucks cup. This not only generates unique content but also boosts brand engagement and visibility significantly.







4. Highlight Your Team: Make your brand more relatable by showcasing your team members and their stories. This humanizes your brand and fosters a deeper connection, encouraging customers to engage and share their own experiences and content.


5. Ambassador Programs: Develop a program where loyal customers can become brand ambassadors. This taps into their networks and influences others through genuine endorsements, expanding your brand’s reach organically. Red Bull does a great job at this with their college ambassador programs. 


6.Consistent Social Media Campaigns: To enhance your brand's presence across different platforms, consider developing a consistent social media campaign that can translate well across all channels. Apple's #ShotOniPhone campaign is a prime example of this strategy in action. 


This campaign not only runs across social media but also features prominently on billboards and in other advertising spaces. By showcasing user-generated photos taken with iPhones, Apple not only demonstrates the quality of their product but also engages their user base by featuring their content in high-visibility areas. 


We’re not trying to say that influencer marketing is dead, it can certainly play a valuable role for your brand if your budget allows for it. However, prioritizing UGC might offer more sustainable and impactful results, especially for e-commerce brands with limited resources. Just consider the facts: 79% of consumers say user-generated content highly impacts their purchasing decisions, and websites that showcase UGC see about a 20% increase in return visitors. This shows that not only is UGC more likely to earn trust—it also keeps people coming back for more.






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