How UGC drives revenue and engagement in social commerce

The integration of social media and commerce is not just a trend — it’s a revolution. As brands seek to connect with consumers more authentically, user-generated content (UGC) has emerged as a powerful tool to enhance brand visibility and foster deeper engagement. Our latest report explores how UGC impacts revenue, boosts engagement, and drives conversions across various industries.

UGC encompasses a wide array of consumer-generated content, including reviews, photos, videos, and testimonials shared on social media and review platforms. With consumers increasingly seeking authentic experiences, UGC not only builds trust but also significantly influences purchasing decisions. In fact, 49% of consumers trust online reviews written by others as much as personal recommendations. This highlights the transformative role UGC plays in modern marketing strategies.

The financial impact of UGC

One of the most compelling findings from our report is the staggering financial impact UGC has across industries. UGC contributes nearly $8 billion in annual revenue for brands engaged in social commerce. This significant revenue boost underscores the importance of leveraging authentic consumer experiences in marketing campaigns.

In 2024 alone, we observed a remarkable 63% year-over-year increase in revenue linked to UGC from Q1 through Q3. This upward trend not only reflects the growing reliance on UGC but also illustrates its potential to drive conversions and sales. The fashion industry, in particular, leads in leveraging UGC, accounting for 50% of the total revenue analyzed. The high visual appeal of fashion products makes UGC a natural fit for engagement, as peer-generated reviews and styling posts resonate deeply with consumers.

Engagement levels and brand loyalty

UGC is not only about driving sales; it plays a crucial role in building brand loyalty and enhancing engagement. Brands that effectively incorporate UGC into their marketing strategies report three times more repeat website visits compared to those that do not. These repeat visits are vital, as returning customers typically account for 70-80% of a brand’s total purchases. This high engagement level demonstrates the importance of fostering customer loyalty and building long-term relationships.

Additionally, consumers who interact with UGC tend to spend more time on brand websites. Our findings indicate that visitors spend over double the time on web pages featuring UGC compared to those that don’t. This extended engagement not only allows brands to showcase their offerings but also encourages deeper exploration of products, ultimately leading to higher conversion rates.

UGC in the beauty and fashion industries

The report highlights the unique dynamics of UGC usage in the beauty and fashion industries. Beauty brands lead in posting frequency, averaging five UGC posts per month on platforms like Instagram. This engagement is driven by consumers seeking authenticity and inspiration, as beauty products often require demonstration to convey their benefits effectively. UGC in the form of tutorials and before-and-after shots provides relatable insights that traditional advertisements often lack.

Conversely, the fashion industry generates high conversions but ranks lower in UGC volume, averaging only three posts per month. This presents an opportunity for fashion brands to enhance their UGC strategies. While fashion is inherently visual, many consumers may feel pressured regarding aesthetics. By promoting inclusivity and encouraging customers to share their unique styles, fashion brands can create a vibrant community that drives UGC volume.

The power of UGC

Our report underscores the profound impact UGC has on brand engagement, loyalty, and revenue growth. By tapping into authentic consumer experiences, brands can enhance credibility, foster community, and ultimately realize significant revenue growth.

Embracing UGC is not just a marketing trend; it’s an essential strategy for driving brand success. As brands increasingly recognize its multifaceted value, the potential for UGC to transform marketing efforts is clear.

To dive deeper into the insights and data from our report, including industry-specific trends and case studies, we invite you to download the full report. Discover how UGC can revolutionize your brand’s marketing strategy and drive sustainable growth.