5 Things UGC Can Do that Paid Ads Can’t

Save time & money. Increase trust, awareness, & sales.

Google, Facebook, and Instagram paid ads can be useful for reaching large target audiences beyond your existing shoppers and organic traffic. But trust in paid ads is hitting an all-time low – and it’s not likely to get any better.

A May 2020 study by Kantar Media found that just 14% of respondents trust brand ads to provide authentic information about their business. In contrast, recent studies show that about 90% of shoppers trust content created by other shoppers to influence their purchase decisions.

User-generated content (UGC) is on the rise, and thanks to Guru Club, you can incentivize your shoppers to create content that will do 5 essential things that paid ads can’t.

1. Create Trust & Reliability at a Much Lower Cost

Shoppers need to trust a brand to deliver amazing products and excellent service, as well as to meet their needs – not just as a consumer, but as a person first. The best way to build that trust? Incentivize your existing shoppers to tell their friends and family all the great things about you.

Especially when it comes to younger shoppers, paid ads and celebrity endorsements aren’t the way to build trust and drive sales. Not to mention, “convincing your existing fans to promote your brand is way cheaper than paying stars to pose with your products” (WordStream). Guru Club offers a simple way to incentivize existing shoppers to tell your story to friends and family.

2. Prove that Shoppers Authentically Love Your Brand

Showcase the real experiences of your real shoppers to prove that your brand is worth the hype. Any brand can say, “Our shoppers love us!” – but through Guru Club, you have evidence of exactly that. UGC shows real shoppers using and loving your products in their daily lives. There’s nothing more authentic than that kind of peer-to-peer marketing!

3. Increase Engagement, Loyalty, and Reach while Saving Money

UGC earns a much higher engagement rate than standard brand posts – 28% higher for organic posts, 50% higher for social campaigns, and 6.9x higher on Facebook alone (Stackla)! Not only that, but earning more UGC means getting more shoppers to engage with you in the first place.

While your shoppers are creating content, they’ll be contributing to your hashtag campaigns, getting their friends and family to engage with them, and adding to your content library. This turns UGC into a word-of-mouth marketing machine that “keeps customers coming back. And referring other customers. Who also keep coming back. And referring more customers…” (Big Commerce)

So how does Guru Club help you do all this with UGC, and save money at the same time?

  • Costs per view (CPV) for locally-targeted campaigns on YouTube range between $0.10 to $0.30, or 3-10 views per dollar spent. (WebFX)
  • In contrast, Guru Club brands consistently earn 40 or more views per dollar spent – so far, up to even 125 views per dollar spent, which is a CPV of only $0.008!

Even better, when a shopper posts a story, it means they purchased your product first. You can use your sales to drive sales instead of paying for ads that may or may not generate conversions.

4. Reach Highly Qualified Prospects Just Like Your Shoppers

A low CPV is great, but what about the quality of those views? You’ll be happy to hear that views earned through your shoppers’ Instagram stories are extremely qualified and engaged. Here are just a few reasons why:

  • People tend to be friends with others who share similar interests, including shopping similar brands.
  • Instagram shows its users the stories from people they interact with most, so your shoppers’ closest friends and family will see their content about you first.
  • Shoppers trust their friends and family to give them good brand recommendations. When they share stories about you, they’re helping you build trust with prospective shoppers.

Guru Club offers you the perfect way to target your exact shopper demographic through peer-to-peer marketing that stays as authentic as possible.

5. Non-Invasively Introduce Shoppers to Brands They Didn’t Know They Needed

One problem with paid ads: they rely on personal information. Shopping habits, followed pages, even location and recent activity. For some, paid ads can feel like an invasion of privacy. If your paid ad is a little too relevant, it might be putting your shoppers off. InMoment’s CX Trends Report found that 75% of shoppers found personalized ads “creepy,” and 22% would take their business elsewhere as a result.

In comparison, introducing shoppers to your brand – a brand they might not have known they needed, or even that it existed at all – through their friends and family is a much less “creepy” way to get personal and targeted. When you reach those highly qualified prospects, your brand message is coming through the lens of someone they trust.

Why rely on less authentic, less cost-efficient paid advertising platforms when you could be doing so much more through content created directly by your shoppers?

UGC can do so much that paid ads can’t. However, we know paid ads are useful for reaching large audiences very quickly. That’s why we’re offering to pay for up to 50% of your Instagram advertising campaign when you’re ready to partner with us and spread the word to your shoppers.

Learn More about Co-Advertising with Guru Club