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UGC in the Philippines: Shaping Purchasing Decisions Through Authentic Content

May 17, 2023

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Are you familiar with the term “UGC”? In the Philippines, UGC stands for User-Generated Content, which plays a crucial role in digital marketing. UGC refers to content created by consumers, such as reviews, testimonials, social media posts, and videos. This authentic and influential content has become a powerful tool for businesses in the Philippines to engage their target audience and shape their purchasing decisions.

In today’s digital age, traditional advertising alone is no longer enough. Filipino consumers highly value the opinions and experiences of fellow users. UGC provides businesses with an opportunity to tap into the collective voice of their audience, building trust, loyalty, and strong connections. With the Philippines’ active social media usage and online engagement, UGC holds immense potential to enhance brand visibility, drive customer engagement, and boost sales. By leveraging the power of user-generated content, businesses can thrive in the competitive landscape of Philippine marketing.

What is UGC in the Philippines: Understanding User Generated Content

In the Philippines, User Generated Content (UGC) has gained significant popularity and importance in the digital landscape. UGC refers to content created and shared by users willingly, excluding promotional materials like commercials and advertisements produced by companies.

Various forms of UGC can be found in the Philippines, including posts on social networking sites (SNS), reviews on e-commerce platforms, and impressions shared on word-of-mouth websites. The dynamic nature of UGC allows users to express their opinions, share experiences, and engage with brands and services.

In recent years, many companies in the Philippines have recognized the value of UGC and actively collect user-generated content related to their own products or services from SNS and other platforms. They harness this content to enhance their landing pages and advertising materials, making them more authentic and engaging.

By leveraging UGC, businesses in the Philippines can tap into the power of user endorsements, social proof, and genuine customer experiences. Incorporating UGC into marketing strategies can foster stronger connections with the target audience, as it resonates with their peers’ voices rather than relying solely on traditional advertising methods.

Importance of UGC in Marketing

UGC (User Generated Content) has become increasingly significant in marketing strategies due to several key factors in the Philippines. Let’s explore why UGC has gained importance and how it has impacted the marketing landscape.

  • Addressing the Challenges of Digital Marketing Bidding Wars

In the highly competitive realm of digital marketing, Real-Time Bidding (RTB) has emerged as a popular method for online advertising transactions. With RTB, multiple advertising agencies and advertisers engage in bidding wars to secure the best ad placements for their campaigns. However, this intense competition has led to skyrocketing costs per acquisition (CPA), making it more challenging to achieve favorable ad placements at lower unit prices.

To counter these bidding wars and rising costs, UGC has emerged as a cost-effective method to reach users without depleting massive marketing budgets. Leveraging UGC allows businesses to tap into the power of user-generated content, enabling them to engage with their target audience in a more organic and authentic manner.

  • The Phenomenal Growth of Social Networking Sites (SNS)

The proliferation of smartphones and the widespread adoption of social networking sites (SNS) have revolutionized how individuals communicate and share information in the Philippines. SNS platforms have given people the ability to share their thoughts, experiences, and opinions on various topics, products, and services. Consequently, users have become active creators and consumers of UGC.

As the number of SNS users continues to rise, marketers have recognized the value of leveraging UGC to reach and engage with their target audience effectively. UGC taps into the power of word-of-mouth marketing and user recommendations, as well as leveraging influencers who have a significant presence and influence on social media platforms. Marketing strategies that utilize UGC capitalize on the authenticity and relatability of user-generated content, resonating with the growing base of users who rely on peer recommendations and online reviews.

By incorporating UGC into marketing campaigns, businesses in the Philippines can effectively harness the power of social proof, user endorsements, and genuine customer experiences. This approach not only helps to foster stronger connections with the target audience but also enables businesses to stand out amidst the noise and competition in the digital marketing landscape.

Benefits of Using UGC

  • Establishing a Sense of Intimacy and Authenticity

Promotions featuring celebrities or influencers may attract attention, but they often lack the personal touch that comes with real user experiences. With UGC, users voluntarily contribute content showcasing their usage or experience with a product or service. This user-driven content adds a genuine and relatable element, allowing potential customers to feel closer to the brand. By incorporating UGC, businesses in the Philippines can create a sense of intimacy and authenticity, fostering stronger connections with their target audience.

  • Enhanced Credibility and Reliability of Information

Consumers often question the credibility of information presented in traditional advertisements or celebrity endorsements. UGC, on the other hand, can incorporate a diverse range of user impressions and opinions. This inclusion of various perspectives allows potential customers to access more objective opinions and evaluate products or services more accurately. The wealth of information from UGC, including word-of-mouth, increases the reliability of the information available to consumers, thereby influencing their purchasing decisions positively.

Disadvantages of Using UGC

  • Potential Inaccuracy of Information

As UGC is generated and published by third-party users, there is a risk of misinformation or misinterpretation. Users may unintentionally spread misleading information, which could result in dissatisfied customers or complaints. It is crucial for businesses to actively monitor and verify UGC to identify any inaccuracies promptly. Regularly reviewing and fact-checking UGC content can help mitigate the risks associated with inaccurate information.

  • Ensuring Content Quality Control

Since UGC is created by users, the content and quality of the shared photos and videos can vary significantly. Maintaining consistent content quality becomes a challenge when relying on UGC. To address this issue, businesses should develop strategies to ensure content quality control. For example, when partnering with Instagrammers or influencers, companies can specify guidelines, hashtags, and pre-approve content to maintain a certain level of quality and alignment with their brand.

Easy-to-Generate UGC and Challenging-to-Generate UGC for Products

Not all products naturally lend themselves to generating User Generated Content (UGC). Some products easily inspire users to share their experiences, while others face challenges in eliciting UGC. Let’s explore the categories of products that tend to generate UGC and those that face difficulties in the context of the Philippines.

Products That Tend to Generate UGC

  • Products Easy to Recommend and Share:

Certain products naturally lend themselves to recommendations and garnering user-generated content. This includes items such as movies, food, hotels, books, and other experiences that users find worth sharing. Additionally, physical products like apparel, cosmetics, sweets, and gadgets are easily captured in photos and shared on social media platforms.

  • Products Promoting Self-Expression:

Products that allow users to express their individuality or reflect their personal style are more likely to generate UGC. These items can include fashion accessories, customizable products, or niche hobby-related goods. Users often enjoy showcasing their unique tastes and preferences through UGC, making these products more likely to inspire content creation.

Products That Are Challenging to Generate UGC

  • Commodity Products with Minimal Emotional Connection:

Certain everyday products, like drinking water or dry batteries, typically lack emotional elements or distinct features that would prompt users to generate UGC. These products serve functional purposes rather than evoking strong sentiments or experiences, making it challenging to create engaging content around them.

  • Complex or Niche Products:

Products that are intricate, technical, or cater to niche markets may struggle to generate UGC due to their specialized nature. Examples include hair restorers, AGA treatments, or luxury cars. These products often require in-depth knowledge or specific expertise, limiting the number of users who can provide meaningful UGC.

When considering UGC for a product, it’s essential to assess its potential based on the current market positioning. For instance, while most dry cell batteries offer similar performance, it might be difficult to generate impactful word-of-mouth for such products. Understanding the unique characteristics of your product and its target audience will help determine if simple UGC creation is possible.

Final PopStar Tip:

In conclusion, User-Generated Content (UGC) has become a crucial tool for businesses in the Philippines to engage their target audience and shape purchasing decisions. UGC allows companies to tap into the collective voice of consumers, building trust and strong connections. With the active social media usage in the Philippines, UGC has immense potential to enhance brand visibility and boost sales. By leveraging user-generated content, businesses can thrive in the competitive marketing landscape and foster authentic relationships with their audience.

Send us a message or contact our Team at contact@pop-star.me for more information on how PopStar can assist you in User Generated Content Marketing here in the Philippines.