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User-generated content (UGC), alternatively known as user-created content (UCC), emerged from the rise of intelligent web services, which allow everyday users to create any form of content such as text, images, audio, videos, and software (e.g. video game mods) and interact with other users. Content aggregation platform such as social networks, discussion forums, and wikis, by their interactive and social nature, no longer produce multimedia content but provide users with the tools to produce, collaborate, and share a variety of content, which can affect the attitudes and behaviors of the public in various aspects. This transforms the role of consumers from passive spectators to active participants.

Since 2020, there are an increasing number of businesses who are utilizing user-generated content (UGC) to promote their products and services. This approach is considered a cost-effective and authentic way to enhance a brand's image and boost sales. Several factors significantly influence how UGC is received, including the quality of the content, the credibility of the creator, and viewer engagement. These elements can impact users' perceptions and trust towards the brand, as well as influence the buying intentions of potential customers. UGC has proven to be an effective method for brands to connect with consumers, drawing their attention through the sharing of experiences and information on social media platforms.

Definition

The Organisation for Economic Co-operation and Development (OECD) has defined three core variables of UGC:

1. Accessible Content: User-generated content (UGC) is publicly produced through various platforms located on the Internet and is available to any individual browsing such platforms, whether a publicly accessible website or a public social media account. There are other contexts where users must remain in a community or closed group to access and publish on such platforms (for example, wikis). This is a way of differentiating that although the content is accessible to the audience, there are certain restrictions for the user who generates the content.

Motivation for creating UGC

1. Implicit Incentives: Implicit incentives are not based on anything tangible and are related to users' motivations for creating and sharing content (UGC). Value motives are extrinsic purposes directly linked to sharing useful information and exchanging opinions about something relevant to the community. Likewise, users are motivated to solve a specific problem with the help of the shared knowledge of other users interacting on platforms such as YouTube, Instagram, TikTok, and Twitter. For example, a user creates a video on TikTok with doubts about how to use a product, and users interact by sharing their experiences. On the other hand, users can be socially motivated, through a social reward such as badges within social platforms. These badges are earned when users reach a certain level of participation which may or may not come with additional privileges. Yahoo! Answers is an example of this type of social incentive. The desire for social recognition, such as popularity or respect within a community, is closely tied to personal fulfillment and the enhancement of one's social standing. Social incentives cost the host site very little and can catalyze vital growth; however, their very nature requires a sizable existing community before it can function. Naver Knowledge-iN is another example of this type of social incentive. It uses a point system to encourage users to answer more questions by receiving points. The desire for social recognition, such as popularity or respect within a community, is closely tied to personal fulfillment and enhancing one's social standing. The identification motivation has strong external standardization and internalization of behavioral goals, such as social identity, that is, users will follow some subjective norms and images to constrain and practice their behaviors. The integration has the strongest external standardization and goal internalization, and the agent often integrates its actual actions with the subjective norms of the environment, so it has the effect of self-restraint and self-realization, such as the sense of belonging.

Use in Marketing

Companies can leverage user-generated content (UGC) to improve their products and services, through feedback obtained by users. Additionally, UGC can improve decision-making processes by strengthening potential consumers and guiding them toward purchasing and consumption decisions. User-generated content (UGC) can enhance marketing strategies by gathering relevant information from users and directing social media advertising efforts toward UGC marketing, which functions similarly to influencer marketing. However, each serves different purposes and plays distinct roles. The distinction between UGC (User-Generated Content) creators and influencers lies primarily in their approaches to content creation. UGC creators are everyday individuals who share content based on their personal experiences with a product, service, or brand. They typically do not collaborate with specific brands, which lends authenticity to their posts and makes them relatable to their audience. In contrast, influencers have a significant and engaged following. They create branded content through sponsorships and paid partnerships with companies. Their role is to influence their followers' purchasing decisions, and their content is usually more polished and aligns closely with the branding and messaging of the companies they work with.