User-generated content, or “UGC,” is significant for marketing and sales teams.

According to an estimate, approximately 90% of customers state that user-generated content (UGC) strongly influences purchasing decisions. This influence surpasses that of promotional emails and search engine results. [1]

Additionally, UGC is trusted by 70% of customers more than professional content or traditional media.[2]

As a result, businesses rely more on user-generated content for marketing, influencing purchases, and expanding their customer base. This article will explore the key statistics on user-generated content and its impact on businesses.

Key Statistics

UGC Stats 2023 Percentage %
More Memorable than traditional ads [3] 31%
Power of Combining Professional and UGC Content [5] 28%.
UGC’s Role in Influencing Purchasing Decisions [8] 79%
Millennials Remembering UGC than traditional content [12] 35%
Customers who find user-generated content effective for discovering new products [16] 48%
Engagement increases when consumers access a mix of user-generated product videos and official brand content. 28%

User-Generated Content Statistics 2023

Here are some statistics on user-generated content (UGC) and its effects on consumption, authenticity, and other business areas such as marketing and sales:

  1. Research shows consumers consider user-generated content nearly 10 times more influential than influencer content when purchasing. [4]
  2. When consumers are exposed to a combination of professionally created marketing content and user-generated content, brand engagement increases by 28%. [5]
  3. According to statistics, a significant majority of consumers, around 92%, rely on recommendations from their acquaintances more than any other information source. [6]
  4. According to a study by Nielsen, 84% of consumers trust peer recommendations more than any other form of advertising. [7]
  5. According to a recent study, most consumers, around 90%, consider authenticity as a crucial factor in determining their preference and support for brands. This percentage has seen an increase from 86% in 2017. [8]
  6. Only a small percentage of brands, as low as 16%, have developed a proper plan for user-generated content. [9]
  7. Approximately 74% of consumers use social media as a source of information when making purchasing decisions. [10]
  8. Over 50% of consumers desire brands to guide the content they should create and share. [11]
  9. Employees who share content receive 8 times more engagement than content shared by brand channels. [13]
  10. UGC-based advertisements achieve click-through rates that are four times higher than average while also experiencing a significant 50% reduction in cost-per-click. [14]
  11. According to research, user-generated content (UGC) leads to a 29% increase in web conversions compared to campaigns or websites that lack it. [15]
  12. According to research, consumers are significantly more inclined to perceive user-generated content as authentic, with a 2.4 times higher likelihood than brand-created content. [8]

Statistics about Time Spent by Customers on UGC

Time Spent by Customers on UGC

  • On average, users dedicate approximately 5.4 hours to consuming content created by other users. [18]
  • Millennials dedicate 18 hours daily to consuming media, with 30% of that time focused on user-generated content. [12]
  • Every week, nearly half of the population (45%) spends more than an hour watching videos on Facebook or YouTube. [17]
  • Websites with user-generated content (UGC) galleries significantly boost visitor engagement, with users spending 90% more time on the site. [19]

Finally, here are a few impactful statistics that underscore the influence of user-generated content on consumer purchasing behavior:

Statistics about UGC’s Impact on Consumer Purchasing Behavior

UGC's Impact on Consumer Purchasing Behavior

  1. Almost half of millennial consumers (44%) trust experienced consumers over family and friends when making purchasing decisions. [20]
  2. User-generated content is found to be 35% more memorable than content from traditional media sources, according to a study at the University of California. [21]
  3. Websites featuring user-generated content have seen a 29% increase in web conversions. [22]
  4. User-generated content on company websites has influenced the online shopping habits of 84% of millennial consumers. [23]
  5. 70% of consumers consider UGC reviews or ratings before making a purchasing decision, with at least 41% of them reading four to seven UGC reviews for insights on a product. [24]
  6. On-site consumer reviews can increase conversions by 74%. [24]
  7. 64% of consumers actively seek and strongly consider online reviews before making a final purchasing decision. [25]
  8. Online reviews are important for 71% of consumers when considering buying electronics, appliances, home décor, and other products. [26]
  9. A staggering 93% of customers believe that user-generated content is beneficial when making a purchasing decision. [27]
  10. User-generated content is 20% more influential than any other kind of media for millennial buyers. [28]
  11. Brands have seen over a 50% conversion rate for visitors to pages featuring UGC. [29]

How UGC Affects the Purchase Decision

User-generated content plays a crucial role in the consumer purchase decision process. With the rise of social media and online reviews, consumers have more access to UGC than ever before. This has resulted in a shift towards trusting recommendations from fellow consumers over traditional advertising methods.

  • UGC Boosts Brand Trust: Consumers view User-generated content as more authentic and trustworthy. People are more likely to trust their peers’ opinions about a product or service, significantly influencing their purchasing decisions.
  • UGC Encourages Engagement: UGC encourages more engagement from customers. Consumers are more likely to interact with a brand when they see content created by other customers, increasing brand visibility and reach.
  • UGC Enhances SEO: Search engines favor original and relevant content. User-generated content fulfills these criteria, helping to improve a brand’s search engine rankings.
  • UGC Provides Valuable Insights: By monitoring the UGC, brands gain valuable insights into customer preferences and behaviors. This can help in tailoring products or services to meet customer needs better.
  • UGC Reduces Marketing Costs: User-generated content is a cost-effective marketing tool. Brands can leverage the content created by their customers, reducing the need for costly professional content creation.

Conclusion

User-generated content greatly impacts consumer purchasing decisions, leading to higher conversion rates for brands using UGC. Its role is especially prominent among millennials, reflecting a shift towards peer-driven product recommendations. Businesses striving for growth must embrace the potential of user-generated content.

Footnotes:

  1. https://www.prnewswire.com/news-releases/new-study-shows-user-generated-content-tops-marketing-tactics-by-influencing-90-percent-of-shoppers-purchasing-decisions-300475348.html
  2. https://www.theguardian.com/small-business-network/2015/sep/17/reviews-tweets-instagram-customers-marketers
  3. https://blog.hubspot.com/marketing/user-generated-content-stats?__hstc=19715687.525b57f417c80e98b84c072c0eb27372.1700299394517.1700299394517.1700391999501.2&__hssc=19715687.1.1700391999501&__hsfp=2025454361
  4. https://stackla.com/resources/reports/bridging-the-gap-consumer-marketing-perspectives-on-content-in-the-digital-age/
  5. https://www.comscore.com/Insights/Press-Releases/2012/3/comScore-Study-Finds-Professionally-Produced-Video-Content-And-User-Generated-Product-Videos-Exhibit-Strong-Synergy-in-Driving-Sales-Effectiveness?cs_edgescape_cc=GB
  6. https://www.slideshare.net/jaybaer/8-things-online-influencers-can-do-for-you#3
  7. https://www.nielsen.com/insights/2013/under-the-influence-consumer-trust-in-advertising/#:~:text=Word%2Dof%2Dmouth%20recommendations%20from,source%20was%20the%20most%20trustworthy.
  8. https://stackla.com/resources/reports/bridging-the-gap-consumer-marketing-perspectives-on-content-in-the-digital-age/
  9. https://merkleyandpartners.wordpress.com/2016/05/20/how-to-connect-with-consumers-via-user-generated-content-infographic/
  10. https://sproutsocial.com/insights/social-media-marketing-strategy/
  11. https://www.socialmediatoday.com/marketing/masroor/2015-05-28/social-media-biggest-influencer-buying-decisions
  12. https://www.business2community.com/infographics/millennials-love-user-generated-content-infographic-01497502
  13. http://www.socialmediatoday.com/content/employee-advocate-mobilize-your-team-share-your-brand-content
  14. https://www.shopify.com/blog/68976197-4-tactics-to-drive-traffic-and-sales-with-user-generated-content
  15. http://www.adweek.com/socialtimes/why-consumers-share-user-generated-content-infographic/639636
  16. https://www.forrester.com/report/The-Purchase-Path-Of-Online-Buyers-In-2012/RES82001?objectid=RES82001
  17. https://www.semrush.com/blog/how-to-boost-your-video-marketing-campaign-with-user-generated-content/
  18. https://meetanshi.com/blog/user-generated-content-statistics/#:~:text=Consumers%20spend%20an%20average%20of,include%20diversity%20in%20brand%20channels.
  19. https://www.veeqo.com/blog/ugc-examples
  20. https://resources.bazaarvoice.com/rs/bazaarvoice/images/201202_Millennials_whitepaper.pdf
  21. https://www.business2community.com/marketing/use-millennial-marketing-to-grow-with-them-in-knowledge-commerce-02314583
  22. https://www.digitalinformationworld.com/2015/12/infographic-how-brands-can-let-consumers-do-the-marketing.html
  23. https://www.businesswire.com/news/home/20120130006041/en/Bazaarvoice-and-the-Center-for-Generational-Kinetics-Release-New-Study-on-How-Millennials-Shop
  24. https://www.3dcart.com/ecommerce-university/why-your-eCommerce-store-needs-user-generated-content.html
  25. https://www.socialmediatoday.com/news/9-things-we-learned-from-the-2018-user-generated-content-ugc-report/513245/
  26. https://www.business.com/articles/7-surprising-ways-online-reviews-have-transformed-the-path-to-purchase/
  27. https://merkleyandpartners.wordpress.com/2016/05/20/how-to-connect-with-consumers-via-user-generated-content-infographic/
  28. https://web.archive.org/web/20210528193631/http://www.business2community.com/infographics/millennials-love-user-generated-content-infographic-01497502
  29. https://www.tintup.com/blog/year-innovation-review-2019/