According to a report by Statista, user-generated videos get 10x more views on YouTube than branded content.
For that reason, most marketers are turning to UGC video strategy to build an emotional connection between the brand and the audience.
But that’s not an always-win scenario, as you might end up spending time and money on creating ZERO-IMPACT videos.
To mitigate this, measure UGC video campaigns' return on investment (ROI) and adjust strategies accordingly.
But how can you do so? Well, don’t worry - we’re here to guide you.
In this article, we will explore:
- A quick overview of UGC videos
- Techniques for tracking and analyzing UGC video performance
- Tips for optimizing the ROI of your user-generated video strategy
- Case studies illustrating successful assessment of UGC video campaigns’ ROI
P.S. Before proceeding to the ROI analytics, you must source high-quality UGC videos to ensure a successful campaign. That’s where Showcase steps in. Our platform connects brands with a community of content creators known for creating authentic and compelling UGC videos, which ultimately enhance your brand's visibility and significantly boost sales and revenue.
A Brief Overview of UGC Videos
User-generated content (UGC) videos are promotional materials created by consumers and offer authentic and relatable views of products or services.
These videos can include testimonials, reviews, or creative product uses, shared across social media platforms to increase reach and influence potential buyers.
For example, inBeat's collaboration with GreenPark Sports tackled the challenge of launching a new app to stand out in a competitive market.
They used micro-influencers from Showcase to create engaging UGC videos.
Moreover, they also collaborated closely with a creative director and strategist to develop unique ideas, hooks, CTAs, and scripts.
As a result, they scaled their budget to 3x while maintaining targeted costs per install, which helped them achieve significant brand awareness and user acquisition in just 3 weeks.
6 Effective Ways to Measure the ROI of UGC Video Ads
Measuring the ROI of UGC videos provides insights into the effectiveness of your marketing efforts.
The collected data enables informed decision-making for your future investments to maximize returns.
At Showcase, we follow these 5 major steps to calculate the ROI of our UGC campaigns:
1. Define UGC Objectives and KPIs
Defining objectives clarifies campaign goals and connects them with measurable outcomes.
Let’s explore how to do it so you can refine your UGC tactics based on data-driven insights:
- Establish clear objectives: Determine what your UGC campaign aims to achieve, such as:
- Increasing brand awareness,
- Driving sales, or
- Improving customer loyalty.
- Select relevant KPIs: Choose KPIs that directly reflect your objectives, such as engagement rate for awareness, conversion rate for sales, and repeat engagement for loyalty.
- Set specific targets: Define quantifiable targets for each KPI to aim for measurable success, like looking to achieve a 20% increase in engagement or a 10% lift in conversions.
Pro Tip: At Showcase, we observed significant improvements in campaign responsiveness by aligning UGC objectives with seasonal promotions or trending topics. This approach leverages the natural consumer interest in current events and increases engagement rates.
2. Track UGC Metrics That Matter
To accurately assess the impact of UGC video ads, tracking specific metrics that provide insights into how they perform is essential.
Here are some solid parameters to focus on:
- Engagement and reach: Track the number of views to evaluate initial interest and overall reach and monitor engagement through likes, shares, comments, and interaction rates.
- Conversion metrics: Measure the click-through rate (CTR) to see how many viewers click on links within the UGC. Also, analyze the Conversion Rate to determine how many complete a desired action like making a purchase or signing up.
- Viewer interaction and retention: Assess the Average Watch Time to understand how long viewers are engaged with the content and note the Bounce Rate to see how quickly they leave the site after interacting with the UGC.
Pro Tip: Our Showcase team has found that implementing a unified dashboard that aggregates all relevant UGC metrics from various platforms into one interface is extremely useful. This centralized view allows for easier comparison and deeper analysis of different types of UGC.
3. Use Specialized Tools and Platforms
To calculate ROI correctly, it’s essential to collect and analyze data correctly.
You can streamline this by using some specialized tools as we have listed below.
We’re also using these tools at Showcase:
- Google Analytics: Use this to track website traffic and user behavior after interacting with UGC in detail. It helps measure conversions and bounce rates effectively.
- Social media analytics tools: Platforms like Hootsuite or Sprout Social offer in-depth analysis of engagement metrics directly from social media channels, including views, likes, and shares.
- Video analytics software: Tools including Vidyard or Wistia provide specific metrics for video performance, such as watch time, heat maps, and viewer drop-off rates. All these metrics are essential because they help you gauge content engagement.
Pro Tip: At Showcase, we have significantly enhanced campaign tracking by incorporating CRM software with these analytics tools. That’s how we get a seamless data flow across different platforms. As a result, we can track customer journeys more effectively.
4. Perform A/B Testing
As you compare two variants of an ad through A/B testing, you can directly observe which elements contribute most to achieving your campaign objectives.
Let’s understand how to conduct this:
- Develop variants: Create two versions of your UGC video ad with one key difference, such as the call-to-action, the video thumbnail, or a specific segment of the video content.
- Segment your audience: Equally and randomly distribute your audience to ensure each group sees only one ad variant to minimize external influences on the data.
- Measure performance: Use analytics to track each version's performance against your predefined KPIs, such as engagement rates, conversion rates, and watch times.
Pro Tip: We at Showcase use precision in our A/B tests by experimenting with different emotional appeals in our calls to action. This focused approach allows us to pinpoint the emotional triggers that lead to higher conversion rates.
5. Compare Performance Against Benchmarks
UGC comparison against industry benchmarks helps understand where campaigns stand in relation to market standards and identify areas for improvement.
Let’s see how to do it:
- Identify industry standards: Research and gather data on average performance metrics like engagement and conversion rates, and view counts for similar campaigns in your industry.
- Use historical data: Compare current UGC performance against your previous campaigns to assess progress and set internal benchmarks.
- Monitor competitor performance: Analyze public competitor campaigns to evaluate how your UGC compares in terms of visibility and engagement.
Pro Tip: Our experts at Showcase use industry-specific benchmarking tools like BuzzSumo for content engagement or SimilarWeb for traffic comparisons. That’s how we get targeted insights that are not readily apparent through standard analysis.
6 Tested Strategies to Boost ROI of UGC
So, you now know how to measure your UGC ROI.
But there’s no reason to stop there.
You can proactively enhance your UGC campaign’s ROI using data-based strategies.
There are many tactics that we employ at Showcase, and we have discussed them below to help you get started. Let’s explore:
1. Find the Right Users
The effectiveness of UGC largely depends on the relevance and engagement of the content creators.
Their authenticity and alignment with your brand can drive significant engagement that encourages trust and community building around your product or service.
You can find the right users through the following steps:
- Target your existing customer base: Start by analyzing your current customers who already appreciate your brand. These individuals are more likely to create genuine and persuasive content that resonates with like-minded potential customers.
- Leverage social media analytics: Use tools to track metrics such as engagement rates, follower demographics, and content style. This data helps identify users who align well with your brand’s image and values.
- Engage with top influencers in your niche: Collaborate with influencers who can expand your reach by creating high-quality content. You can find them on platforms like Showcase.
Pro Tip: At Showcase, we recommend brands to conduct competitions or challenges that encourage content creation around their product. This increases the volume of UGC and also stimulates creativity and enthusiasm amongst participants.
2. Curate High-Quality Content
Quality content engages viewers and enhances brand credibility.
It also attracts more viewers, encourages shares, and increases the likelihood of the content going viral.
This all translates to greater brand exposure and increased sales.
To curate high-quality content, follow the below steps:
- Set clear content guidelines: Provide creators with specific guidelines regarding the style, tone, and quality expectations. You need this to maintain consistency and ensure the content aligns with your brand's message.
- Implement a review process: Establish a system for reviewing submissions before they go live to ensure they meet your quality standards. This step helps maintain the integrity of your brand and associated content.
- Encourage creativity and authenticity: Motivate users to produce original content that reflects their genuine experiences with your product. Authenticity resonates more with audiences and can lead to deeper engagement.
Pro Tip: At Showcase, we always actively engage with creators. That’s because, by providing personalized and constructive feedback, we can significantly enhance content quality. Plus, it’s always best to maintain solid relationships with creators.
3. Test Different Hooks
Creators at Showcase test different hooks, which can be strategically placed in intros and throughout the content to catch viewers' attention.
An example is the Hopper campaign, where three unique, attention-grabbing hooks were tested to identify the highest-performing one.
Some strategies that you can use for testing hooks are:
- Analyze viewer feedback: Pay close attention to comments and feedback on videos to see how viewers react to different hooks. This qualitative data can be invaluable in understanding what captures and keeps their attention.
- Leverage analytics tools: Use video analytics tools to examine where viewers drop off and where they engage the most. Our Showcase creators will help you pinpoint which hooks are effective at maintaining viewer interest throughout the video.
- User surveys and feedback: Directly ask your audience what they think about the hooks through surveys or interactive features like polls in your videos or on social media. This approach provides direct insights into which hooks are effective and why.
Pro Tip: At Showcase, we encourage creators to use heatmaps and session replay tools to visually understand how viewers interact with their videos. The tools can show exactly where viewers lose interest or skip, as well as where they rewatch or engage which provides a clear picture of the hook's impact.
4. Offer Rewards For Sharing
Offering rewards for sharing UGC videos encourages users to spread the word about your brand.
When they are rewarded, they become active participants in your marketing efforts which leads to increased visibility and credibility of your campaign.
Some proven reward-sharing strategies are listed below:
- Implement a tiered reward system: Design a reward system where users earn more valuable rewards as they share more content. This could range from discounts and coupons to exclusive products or experiences based on their engagement level.
- Offer unique and personalized rewards: Personalize rewards based on the user’s interests or past interactions with the brand. This makes the reward more appealing and also increases the likelihood of continued engagement and loyalty.
- Use social proof and recognition: Publicly recognize top contributors on your platforms and social media. This can be as simple as featuring their content prominently or creating a 'fan of the month' spotlight.
Pro Tip: We believe in integrating your reward program directly into your social media strategy by using automated tools that track shares and engagements. This simplifies the entire process while ensuring accuracy and fairness in the distribution of incentives.
5. Use Multiple Marketing Channels
Using multiple marketing channels to promote UGC videos can expand your reach and enhance your campaign’s effectiveness.
This diversified approach maximizes exposure and drives more robust engagement across a broad spectrum of potential customers.
Here are our tips on how to do it:
- Cross-platform promotion: Promote UGC videos across various social media platforms such as Instagram, YouTube, Facebook, and TikTok. Tailor your content to suit the norms and strengths of each, such as using shorter clips for Instagram and longer formats for YouTube.
- Integrate with email marketing: Include UGC videos in your email marketing campaigns. Videos can increase the click-through rates of emails and provide more engaging content for your subscribers. Highlight user testimonials or success stories to add a personal touch.
- Leverage website integration: Feature UGC videos prominently on your website. This can include a dedicated gallery or a rotating showcase on the homepage. Videos can significantly increase the time visitors spend on your site, which enhances SEO and increases the chances of conversion.
Pro Tip: At Showcase, we use marketing automation tools to streamline the UGC distribution process and ensure consistent messaging across all channels. This saves time and also provides valuable insights into user engagement and content performance.
7. Take AI Assistance
According to a report by Business.com, brands that used AI for UGC analysis reported a 30% increase in ROI. AI technologies can automate the process of sorting through videos.
This helps identify the most impactful content and optimize distribution strategies based on data-driven insights.
A streamlined way of using AI for UGC videos is:
- Optimize content distribution: AI algorithms can determine the best times and platforms for posting UGC to maximize reach and engagement. This tailored approach considers user behavior patterns and preferences across different channels.
- Enhance audience targeting: Implement AI-driven analytics to refine your audience segmentation. AI can process demographic, psychographic, and behavioral data to create highly targeted marketing campaigns. This ensures that the most receptive audiences see your UGCs.
- Enhance content quality: You can use AI-driven editing tools to enhance video quality by optimizing lighting, stabilizing images, or even editing video length based on platform-specific best practices. This can make your UGC appear more professional and appealing.
Pro Tip: At Showcase, we use AI-driven feedback loops to refine content creation guidelines based on what performs best. This includes tweaking themes, tones, and even specific elements like music and editing style.
Maximizing ROI on UGC Videos: Case Studies
We helped multiple brands maximize their ROI through UGC videos at inBeat. Let’s explore some case studies of how our expertise helped them achieve outcomes that exceeded expectations:
1. Hurom
Hurom, in partnership with inBeat Agency, significantly enhanced their ROI on UGC videos by adopting a strategic shift from discount-driven messaging to health-focused content.
The brand initially faced rising Cost Per Acquisition (CPAs) and low Return on Ad Spend (ROAS) due to outdated ad designs and creative fatigue.
To resolve this, inBeat, with its expert creators, analyzed and optimized various UGC elements like hooks, CTAs, and social proof.
Results
This strategic step led to a 36% reduction in CPA and a 2.5x increase in ROAS over 12 months.
Moreover, Hurom’s marketing efficiency improved with this approach, and the brand also became more relatable and trustworthy to consumers.
2. Hopper
With the rapid saturation of their ads and increasing costs per acquisition, Hopper needed a solution to scale their UGC ads effectively.
Leveraging inBeat's expertise, they developed a scalable content creation process that tapped into top-performing creators.
This strategic approach ensured a consistent stream of fresh and engaging UGC content.
Results
Hopper achieved ongoing success with genuine, high-performing UGC creatives, which drove down CPAs and eliminated ad fatigue for TikTok.
This continuous optimization ultimately led to the maximization of their ROI.
3. NielseniQ
NielsenIQ partnered with inBeat Agency to launch their Unroll.me app re-release campaign.
With it, they aimed for rapid user acquisition through social media.
For them, high CPAs were a major setback which was then mitigated by inBeat’s strategy centered on scalable user-generated content.
They sourced micro-influencers from Showcase to generate authentic TikTok Ads assets.
Results
Through targeted persona definition and creator casting, NielsenIQ achieved a remarkable 75% reduction in CPAs across major platforms with 100k+ monthly app installs. This success highlights the potency of a creative UGC approach in driving significant ROI.
Looking to Maximize ROI of Your UGC Videos? Let Showcase Guide You to Success
ROI is a crucial factor of any UGC campaign as it determines its success rate and accounts for the budget spent on it.
Thus, brands must measure it accurately and take measures to boost it further to achieve desirable outcomes.
This guide has discussed a comprehensive plan for measuring the ROI of UGC videos, along with some tips to help you maximize it.
We hope our above-mentioned tactics will positively impact your campaign in the long run.
Key Takeaways
- Establish clear goals and select relevant KPIs for precise campaign measurement.
- Use specialized analytics and video performance tools for detailed data analysis.
- Conduct A/B testing to identify the most effective elements of your UGC ads.
- Find the right content creators to enhance authenticity and engagement.
- Employ multiple marketing channels to maximize reach and impact.
Want to achieve maximum return on investment for your UGC videos? Showcase can help you along the journey with its vibrant community of creators who produce authentic content. Collaborating with this platform, you can efficiently enhance your brand’s engagement and expand its reach to maximize conversion rates and, eventually, sales!
