User Generated Content On the Rise
E-Marketer's April report on user generated content (UGC) predicts that almost 43% of Internet users in the U.S. will create and share online content this year.
The top two questions I think this research addresses are: 1.) is UGC a fad?, and 2.) Can it be monetized (what every good marketer wants to know)?
The answer to the first question is no. As the executive summary of the report suggests, any notion of UGC being a passing fad should be put to rest.
I remember in the late 90's, leading web developers and UI strategists knew there were great reasons to push for "interactive experiences" on the web. What many had no clue about was that so much of the experience would actually be created and driven by the users themselves.
Knowing where we are today with this should seriously prompt organizations to look at how they might use UGC as part of their marketing and customer service loop.
In terms of monetization, the research is in the context of you guessed it, advertising. The main thing I get from the report are that advertisers are hesitant to enthusiastically push advertising next to UGC. Or, as Andrew Keen was quoted in Newsweek last month, "nobody wants to advertise next to crap."
Still, there are reports of organizations that plainly state they are having success selling ads next to UGC. Video sharing site, Veoh, is one of them — selling banners as well as video advertising for approximately $8 – $20 per thousand impressions (CPM).
What's your opinion of UGC? Do you think advertising will continue to find its way into the mix?
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