How UGC and IGC can help you save money

How UGC and IGC can help you save money

July 2023
Drive Sales
How UGC and IGC can help you save money

Online nowadays it's all about UGC, if you don't know what they are, we explain it to you well here! Replacing or reducing your dependence on some of the most expensive content sources with UGC can not only save you money without compromising quality, but is likely to bring you better results. That is why thousands of companies, especially abroad, are investing in IGC, reaping financial and performance benefits, while presenting their brand more authentically to the public. This strategy keeps existing customers and attracts new ones. But how can IGCs make you money and save you money? Read on to find out!

1. Content audit

Taking a long, hard look at where you are currently spending money is a first step to saving money! You probably do it anyway, but taking a closer look could expose potential areas of overspending and opportunities to downsize in some places. Typically if you do influencer marketing you will have these sources in your spend items:

  • In-house team
  • Stock photography agency (think Getty or Shutterstock)
  • Professional photographers and
  • videographers
  • Influencer

Now ask yourself two questions:

  • How much money are you spending on each source?
  • How much content do you receive from each source?
  • Calculate an average cost per content item for each source?

Whatever the cost per unit is, it will be more than the cost of a piece of IGC and when you find out how much, you will be really surprised! With Roundabout's tool, you only have one cost item and the total really makes a difference: you no longer have to deal with influencers, photographers and clients, it's all automated. If you want to know more about our tool click here.

2. Use AI to find the right influencers for you

For a successful influencer marketing campaign you need to find the right influencers, but also those in the right circle to expand your target audience in the right way. This is where AI comes to the rescue, artificial intelligence makes your workflows more efficient and you can get results in a smart way. The Roundabout tool can help you. When using the Roundabout platform, you apply filters on the influencer analysis page to find the right ones for you. This is where our artificial intelligence algorithms come into play and instantly generate a list of similar profiles based on the same parameters. This means you no longer have to rely solely on individual influencer research or recommendations. The platform automatically presents you with a diverse selection of similar profiles, widening your choices and opening up new possibilities.

Want to try it now? Find your influencers on Roundabout!

3. Get more leads from your advertising dollars

User-generated content has been proven to perform better than branded content. Air France for example saw a 4% increase in CTR when using UGC for their creative, while 56% of consumers say the types of content they most want to see from brands are user-generated photos and videos. If not already, now is the time to incorporate IGC into your marketing strategy!

Looking to save money? Using IGC will help you reduce your advertising spend without damaging your results. Air France reduced their CPA by 9% by using IGC as creative in their advertising campaigns.

4. Embed UGC in your product pages

Strategically placed UGCs engage buyers and give them confidence that existing customers had a good experience with your product. We call this social proof, and social proof at the point of purchase drives conversions. So, if you are an e-commerce brand, you want to get UGC on your product pages.

Eighty percent of consumers say they would be more likely to buy a product from an online store if its website contained photos and videos of real customers.

This also raises the question of not doing so and the potential ramifications. A recent study showed that 58 percent of consumers left an e-commerce store without buying because the site did not contain customer reviews or photos. Offer shoppers what they need to convert: UGC.

5. Incentivize your most passionate followers to become your army of content creators

Influencers are another form of paid advertising, and only 9 percent of consumers say they actually "influence" their purchasing decisions. You know it, I know it, and people see through it. And as Bob Marley *said, "You can't fool all the people all the time. "*

Instead of paying people who do not organically support your brand to create content, why not reward your loyal fans and supporters who will happily create it for you?

There are many ways to incentivize supporters of your brand, including:

- Discount coupons
- Free product sampling
- Contests
- Recognition through featuring their content on your social channels or website
- Exclusive "advocates only" physical or virtual events.

In addition to being much cheaper, this is a strategy that rewards your passionate customers and nurtures their loyalty, collects *authentic* content with better performance, and is a reliable source of content creators to draw from on a regular basis.

If you are looking for a new technology to help you earn and save money through UGC, surprise surprise, we know a good one, click here!