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User Generated Content and Its Impact in Marketing

No matter where we go, we are constantly being persuaded by countless ads and offers by large and small brands alike to buy something, subscribe to something, sign up, or start a free trial. Companies and brands go to great lengths to get their customers’ attention and to spark interest. Yes, advertisements are effective and essential to create awareness and generate interest about a new product launched or a new service just started. But in order to get a customer to take an action—like buying a product or enrolling for a course—they need more than just commercials. People look for reviews and ratings (these are user-generated content) before taking that final step, or they go on social media to see what people are saying about that particular product. Because, by human nature, we tend to trust others’ experiences and words more than colorful commercials and ads.

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What Exactly Is User-Generated Content?

User-generated content can be any form of content that a particular product’s user base generates, like ratings, reviews, testimonials, unboxing videos, Instagram Reels, etc. This content is more valuable than the brand commercials the company produces because it is more capable of building human trust and credibility, and it removes the skepticism generated by ads. UGC organically improves conversions and is often voluntarily created, making it more valuable than ads.

Types of User-Generated Content

Ratings and Reviews

 Before buying a new dress on Amazon, we often scroll to the ratings and review section. The more people are talking positively about the product, the more likely we are to buy it. The review section on e-commerce platforms helps to eradicate many possible doubts a customer might have, such as: Is this worth my money? Will the color fade after the wash? Does the cloth shrink? Is this suitable for summer? Additionally, customers can ask questions regarding a product on Amazon and other e-commerce platforms before buying or taking action, which improves customer interaction and increases the chances of conversion.

Unboxing Videos

Unboxing videos are extremely popular on YouTube. They work really well for many products, especially technical items like phones, camera gear, or high-value kitchen appliances, which are often one-time purchases. A video tutorial on unboxing and putting together a new IKEA table can be both informational and promotional.

Shorts and Reels

 Short-format videos are a relatively recent introduction to social media platforms (introduced in 2020). Ever since their arrival, they have become one of the most popular content formats on YouTube and Instagram. Short videos by influencers featuring their new favorite makeup or a new favorite kitchen tool can get a lot of attention among their loyal followers and boost product sales.

Social Media Mentions

Huge brand awareness can be generated by Twitter shout-outs, Instagram tags, and TikTok trends. Create branded hashtags so that clients can share their experiences in a way that is easy for you to monitor.

Forums and Threads

 Forums and threads like Reddit can fuel useful discussions on products and services.

Creating a User-Generated Content Strategy

  • Define your goal – What are you aiming for? Is it awareness, increase in customer engagement or higher conversions?
  • Know where your audience is present. For B2B brands it can be LinkedIn, for D2C brands it will be Instagram, TikTok or YouTube.
  • Encourage your audience to share their experience through Shorts, Reels or posts on social media.
  • Always ask for permission before using user content, give credit appropriately to avoid legal complications.
  • Encourage user content through small rewards.
  • Display user content on your official website and social media pages as social proof for your credibility.
  • Finally measure how user-generated content is performing and optimize accordingly.

Labubu doll- A case study

Labubu is a collectible released by popmart that recently went viral across all social media platforms. This ugly cute toy was in everyone’s social media recommendations recently. The blind box design aspect created curiosity and interest among buyers. There were several unboxing videos of blind boxes, and several celebrities started posting about their personal Labubu collection which skyrocketed sales of this toy. Several local influencers started to create posts on making their own diy look alike Labubus, its accessories etc. Sales significantly increased as a result of the popularity boom. According to the South China Morning Post, Pop Mart’s revenue outside of China and Taiwan amounted to roughly $778 million in the first half of 2025, or roughly 40% of total sales. Limited-edition Labubu figures were in great demand, and they sold for up to $268 on websites like StockX, which is almost 60% more than the original retail price

.However, the market became saturated as a result of the rapid expansion. According to Financial Times, resale prices for Labubu figures had decreased by up to 37% since March by September 2025, indicating a decline in demand. As investors started to worry about how long the Labubu phenomenon would last, Pop Mart’s share price fell precipitously, falling as much as 8.96% in a single day (Financial Times)

Conclusion

The journey of Labubu highlights the role of UGC and influencer marketing in achieving viral success. While the early lift resulted in strong sales numbers, the later pullback demonstrates the difficulty of keeping that momentum in a trend based market. They provide brands with a playbook for leveraging real content and community, while also using long term diversity of products to minimize risk of saturation in a product category.