There are several upsides to UGC for businesses, including that it is cheaper than traditional advertising, more relatable, and can help brands to be perceived as more authentic and socially conscious.
Authenticity is increasingly important to consumers.
Approximately 90 percent of consumers reported that authenticity played a factor in their shopping decisions, up from 86 percent in 2017.
Consumers are 2.4x more likely to find UGC more authentic than traditional branding.
Approximately 92% of consumers report that they trust UGC more than any other type of marketing content.
UGC is thriving on Facebook and Instagram, which may lead other social media platforms to incorporate UGC in the future.
Approximately 78% of marketing companies find Facebook to be an effective marketing tool, and 70% find Instagram to be an effective marketing tool.
8. The “Unbundling” Of Reddit
10 years ago the classifieds site Craigslist was essentially “unbundled” into dozens of separate niche verticals.
Dozens of huge companies were spawned, most notably Airbnb, Zillow, and Indeed (among many others). And now, the same is happening to Reddit.
Discord (now valued at $15B) carved the big first chunk out of Reddit as the “Slack for Gaming”.
Search volume for “Discord” is up 760% (last 5 years).
It listened to the needs of the League of Legends gaming subreddit (r/LoL) and grew off the back of that community.
Their core offering became the de facto standard esports voice chat tool that gamers needed. And their branding really resonated with that specific community.
Which niches are next?
The subreddits that are most ripe are those that can benefit from custom features geared towards those specific users.
Another important factor is when a community is boosted by accountability, rather than the anonymity provided by Reddit.
Indie Hackers is a prime example of both of these things in play.
12k users flock to this online community made up of people that are “building online projects that can generate revenue” in public.