UGC in Switzerland: an underexplored marketing resource?

What is UGC?

You may have found yourself browsing Amazon or Asos, scrolling through the thousand product options available and wondering which one is most suited to your needs. The selection process might ultimately culminate in perusing the reviews at the bottom of the page – after all, research indicates that 98% of consumers consult online reviews before making a purchase.

Graph showing the percentage of consumers who read online reviews — Caption: BrightLocal’s “Local Consumer Review Survey 2023”

This and other formats of digital word-of-mouth are commonly referred to as user-generated content, or UGC. Hootsuitedefines UGC as “original, brand-specific content created by customers and published on social media or other channels. UGC comes in many forms, including images, videos, reviews, a testimonial, or even a podcast.”.

Whether it’s unboxing videos, blog reviews or product tutorials, today’s consumers are happy to engage with and rely on online communities to make purchasing decisions. Marketers and consumers alike largely agree that UGC feels more authentic and, therefore, more trustworthy than brand-generated content. This can lead to an increased conversion rate of around 10% for online purchases. Not bad!

Who’s doing it right?

Brands like Coca Cola, Adobe and GoPro have successfully leveraged UGC on platforms such as Instagram. Sharing customer-generated content fosters audience engagement, creating a sense of community and brand identification.

Instagram post from Adobe with user-generated content showing a cityscape with glittering skyscrapers and a sparkling, large moon on the horizon

Brands have even taken to creating special hashtags to connect with users willing to create content (cf. Calvin Klein’s #MyCalvins campaign, Apple’s #ShotoniPhone, etc.). With 93% of marketers agreeing that content created by consumers performs better than branded content,it’s no wonder that UGC has been making its way into many organizations’ marketing strategy.

The rapid advent of TikTok in the West presents companies with yet another opportunity to engage with their audiences, and the app’s fun, authentic and creative tone lends itself particularly well to UGC. As an example, US makeup brand e.l.f’s #EyesLipsFace UGC campaign has seen over 10 billion views from more than 5 million user-generated videos.

Is it UGC or influencer marketing?

Both UGC and influencer marketing involve platform users creating original content that generates social proof. However, there are a few distinctions between these approaches:

User-generated content	Influencer marketing
can be entirely organic is typically posted by the user and re-shared by the brand the content creator may not have a significant audience is often a one-off post can be more more relaxed	is paid media can be co-owned by the influencer and the brand caters to the influencer’s audience can be an ongoing partnership (brand ambassadors ) can be more polished

Organic UGC, as seen in the examples above, is less costly than influencer marketing. As brands have noticed the effectiveness of authentic content, we’re now observing the rise of paid UGC: that is, content that brands will pay users to generate. Typically, this content is shared on the brand’s channels without any attribution to the user who created it, and is often displayed as ads or as “sponsored” content (TikTok).

What about Switzerland?

According to Data Reportal’s most recent analysis of the Swiss digital landscape, the country had 8.57 million internet users in January 2022, representing a penetration rate of 98% of the total population. Moreover, the share of people in Switzerland uploading self-created content increased by 11.8 percentage points in a year, reaching its highest value at 39.48%.

Although there were over 7 million social media users in Switzerland as of January 2023, as you browse through, it would seem as though branded user-generated content is rarely featured locally.

As mentioned above, TikTokhas seen exponential growth in recent years, currently ranking as the 6th most popular social media platform globally, with over 1 billion users worldwide. In Switzerland, the platform has just over 2 million users, compared to Instagram’s 3.5 million users. In Switzerland, the platform has just over 2 million users, compared to Instagram’s 3.5 million users.

Considering the platform’s growth and popularity amongst the younger demographic, there is much room for brands, especially local ones, to explore UGC marketing opportunities.

Future opportunities: is this the right thing for your brand?

We’ve been observing a shift in the way that consumers enjoy online content, especially as Gen Z grows into an ever more relevant, trend-setting, and demanding consumer segment.

Since the advent of short-form videos in 2016 with the appearance of Vine, the format experienced a revival through TikTok’s sudden rise in the scene. The impact has been such that many large companies have since adopted the format, as is made evident by the launch of Instagram Reels in August 2020 and YouTube Shorts September of the same year.

Visual representation of the distribution of different types of advertising according to the audience's value-based perception — GWI’s “What do consumers actually think of ads?”

In an article about trending topics in digital marketing published by Forbes, short-form video, influencer marketing and authenticity are highlighted as some of the key elements that are defining the current online scene.

Considering the current landscape and trends, exploring UGC and TikTok, can be an excellent, budget-friendly opportunity for companies in Switzerland. Creating authentic content and inviting users to contribute can help brands to reach a wider audience, thereby boosting their brand awareness, building engagement and, ultimately, increasing conversions.

Feeling inspired to implement UGC in your marketing strategy? Why not give it a try? Book an appointment with us to discuss how our Social Media and Content Specialists can support you.