User-Generated Content (UGC): How customers take over marketing for companies.

User-Generated Content (UGC): How customers take over marketing for companies.

Management Summary

  • Content from customers feels credible and gives brands authenticity

  • UGC provides scalable content without companies having to produce everything themselves

  • Strengthening customer loyalty, as people enjoy being part of brands they identify with

Real voices, real experiences, real impact: User-Generated Content (UGC) is transforming how brands communicate—and how they are perceived. What used to be the letters-to-the-editor is now a TikTok video or Instagram post. Customers become co-creators of the brand world—and this presents a huge opportunity for companies.

What is User-Generated Content?
User-Generated Content, or UGC, includes all content created and publicly shared by users, usually related to a brand, product, or service. This includes photos or videos of products on social media, reviews on sales platforms, unboxing videos or experience reports on YouTube, comments, stories, or blog posts.

Even long before social networks existed, people actively participated in public communication about companies. A classic example is letters to the editor in newspapers—an early, analog counterpart to today’s comments and posts.

UGC vs. Influencer Marketing—Two complementary worlds:
At first glance, influencer marketing and UGC may seem similar: both rely on content from external individuals. However, there are significant differences, especially in motivation, professionalism, and perception.

While influencers are paid to create content, UGC creators are typically “real” customers sharing content out of conviction and personal initiative. They show products in everyday life, speak openly about their experiences, and therefore appear particularly authentic.

Influencers, by contrast, often have large reach and professional-quality content, which is also valuable for brand communication. However, with professionalism comes advertising distance: many users know these are paid partnerships, which can lead to skepticism.

The major advantage of UGC lies in its approachability and credibility: it is more spontaneous, real, and emotionally closer to the audience. Influencer marketing and UGC are not mutually exclusive—in fact, a strong digital strategy combines both effectively.

Why UGC is valuable for companies:
UGC is much more than “fan content.” When used correctly, it can deliver real business value:

  • Trust through authenticity: Real experiences resonate. When customers voluntarily talk about or showcase a product, it generates credibility that no advertising campaign can replicate. For younger audiences (Gen Z, Millennials), this authenticity often outweighs promotional claims.
  • More content—less effort: UGC continuously provides new material for social media, websites, or advertising, allowing brands to scale content output efficiently without constant in-house production.
  • Customer loyalty and community building: When users see their content shared and appreciated, it strengthens their bond with the brand. They feel part of a community—not just as buyers, but as co-creators.
  • Influence on purchasing decisions: Real-life photos, honest reviews, or experience reports often convince more effectively than product descriptions. Many consumers rely on such content as “social proof,” reducing purchase uncertainty.
  • Increased visibility and reach: UGC spreads organically through users’ networks, helping brands reach audiences they might not access via traditional channels. It can also support SEO, e.g., through reviews or blog posts.

The strongest brands let customers have a voice:
In a digital world where trust, proximity, and authenticity matter, UGC is a powerful tool. It strengthens brands, reduces marketing costs, and activates the community. Companies leveraging UGC today turn passive consumers into active brand ambassadors, gaining much more than reach—they gain relevance.

AI-generated UGC:
Currently, many platforms allow companies to generate UGC using artificial intelligence. Using highly specialized prompts and large reference libraries of images and videos, these platforms enable brands to create their own UGC without relying on actual users. Some of these generated contents are so advanced that inexperienced consumers perceive them as authentic. For companies, generating content in-house is more cost-effective and less risky, though it limits product interaction rates. How this trend will impact companies and content creators in the future remains to be seen.

Assessment by amce studios:
UGC can be a powerful tool in building brand reputation and customer loyalty. However, it’s crucial to set boundaries and integrate customer content in a way that complements, rather than replaces, the brand’s own message. It’s valuable to foster a sense of belonging, but too much emphasis can create misperceptions among customers. As a digital agency, we leverage these principles to craft content that highlights desired aspects and connects with the community. In doing so, we don’t just provide influencer content for social media—we also support effective community management.

Share this article.

amce studios GmbH is an owner-managed digital agency based in Darmstadt. Since its founding, its customers have included large and medium-sized companies, aspiring start-ups and ambitious new founders from the technology, energy, environment, retail and fashion industries. As a full-service agency, customers are supported regionally, nationwide and worldwide in all areas related to web experience, branding, social media and 3D design. amce studios GmbH is part of the amce Studios Group.

Latest news & insights
by amce studios.