User-generated content (UGC) is driving over $8 billion in annual social commerce revenue, according to a new report by Emplifi, with brands experiencing a 63% year-over-year increase in revenue through this strategy.
The study analysed UGC shared by B2C brands across platforms like Instagram, TikTok, YouTube, X, and Twitch over the past year, covering 49 different industries. It highlights UGC as a key element in social media strategies, significantly boosting conversions and engagement.
Brands leveraging UGC not only saw revenue boosts but also enhanced customer engagement. Websites featuring UGC experienced three times more repeat visits compared to those without, and users spent over twice as much time on these pages. This proves the value of authentic, peer-generated content in capturing consumer interest and driving conversions.
The rise of social commerce shows no signs of slowing down, with EMARKETER projecting nearly doubled online shopper spend by 2027. The increase in revenue is expected to come primarily from existing buyers rather than new customer acquisition. According to the report, brands that integrate UGC into their social strategies are better positioned to benefit from this growing trend.
Emplifi’s data also reveals industry-specific insights. Fashion and apparel brands, for instance, lead in UGC-driven revenue, with customer content accounting for 50% of their online sales. However, despite their potential, fashion brands are among the least frequent users of UGC, averaging only three posts per month. Other sectors like travel, home and living, and retail also see notable UGC-driven revenue, with travel brands leveraging UGC to drive nearly 10% of their online sales.
Interestingly, UGC consistently outperforms traditional ads, generating nearly four times higher engagement rates on average. The travel sector, in particular, benefits significantly, with UGC engagement rates reaching 17%, compared to Instagram ads’ average of below 4%.