The global User Generated Content Platform Market size is expected to reach USD 18.65 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 26.6% from 2021 to 2028. User Generated Content (UGC) or User Generated Content Platform can be defined as software-as-a-service (SaaS) that helps organizations curate images, videos, and text from social media and other online resources to repurpose for creating their brand’s authentic story. The use of user-generated content for marketing purposes is on the rise. The authenticity and creativity of this messaging have been harnessed to drive positive business outcomes. As more marketers take advantage of this relatively new form of advertising, close attention is needed to be paid to how this content is commercialized, to not tread into the very different waters of influencer marketing. For instance, Travelex, a U.K.-based foreign exchange company, started a campaign by launching a 12-month photo contest campaign. The company made use of exclusive hashtags such as #Travelxwow in order to urge its audience to participate, capture their best shots, and share on Instagram, Twitter, or directly through their own website. Through this initiative, the company aims to increase social engagement and obtain potential user data.
The advent of digital commerce and the extending consumer distaste for intrusive marketing tactics have led many advertisers and brands to introduce user-generated content to engage consumers and connect with them. New formats such as augmented reality (AR) filters and lenses and live streaming have provided consumers with new methods to create content. They have given marketing agencies new strategies to leverage user-generated content as part of their advertising and marketing efforts. For instance, in March 2020, Twitch’s, an American video live streaming service, states that its viewership increased by 31% as more individuals connected with the live streaming platform. For brands and their agencies, there are many benefits to using UGC for marketing and advertising purposes. Top among them are highly trusted online content, strong brand affinity and engagement, more earned media, strong search engine optimization (SEO), and new research opportunities.
However, the downside of marketing and advertising through user-generated content is connected to the requirement of close supervision as negative content is inevitable. It requires an individual or a team to monitor, filter, and review user-generated content before publishing, which leads to extra costs and time for the organizations. Besides, moderating UGC can lead to a Black Hat SEO attack. Therefore, a dedicated team of supervisors is required to publish the content. Another prominent factor restraining the growth of the UGC market is unreliable and unknown sources. Since people can be reluctant to trust a random review or content with no authoritative background, it questions the credibility of the marketing content. Further, accusing the system of fake accounts and aliases is easy with so many different content contributors. Therefore, some consumers are not likely to trust UGC as others.
Related Press Release@ User Generated Content Platform Market Report
User Generated Content Platform Market Report Highlights
- The rapid growth of digital music has contributed to the explosive surge in user-generated content, such as virtual concerts on Twitch or Fortnite, and music as a viral meme of Triller and TikTok. TikTok has certainly shifted the paradigm on how entertainment/ music followers discover, create, and share music
- The growing use of smartphones with high-speed internet technologies, such as 3G, 4G, and LTE, has led to the increased data consumption and production of user-generated content, such as live streaming videos and live podcasts
- In terms of product type, the audio and video (including live streaming) segment captured the largest revenue share in 2020. Factors such as increased engagement with customers, high potential for shareability on social media platforms, the availability of high-speed internet, and detailed information about the product are expected to drive the audio and video (including live streaming) segment
- To gain a competitive edge in the market, players have started adopting the client base expansion strategy by raising funds for the development of their platform. For instance, in March 2021, Yotpo, an eCommerce marketing platform that helps to accelerate direct-to-consumer growth, announced raising USD 230 million in Series F funding. This initiative was aimed at funding to accelerate the company’s eCommerce marketing platform