USER-GENERATED CONTENT: EVERYONE IS DOING IT (DIFFERENTLY)A look at the generational differences in usage and attitudes towards user-generated visual content in the U.S.

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From culture to commerce, social media has transformed nearly every facet of life in America. The selfie revolution has gone mainstream, and it’s not just tech-savvy millennials who are creating the new standard for how we engage with each other and the brands we care about. Today, all demographics, from tweens to seniors, are active on social networks and participate in an ecosystem where consumers have taken the driver’s seat, creating and sharing exponentially more content than brands.

The rise of user-generated content comes alongside diminishing trust in branded content. Fatigue from relentless advertising has led consumers to go out of their way to avoid content from brands, employing adblockers and turning to social channels for escape. This is a significant challenge for marketers - but also an opportunity. Across industries, social media has become a vital part of the shopper journey and the emergence of user-generated content has come to provide the relatability and authenticity the public is demanding.

To help brands understand this evolving space, Olapic’s “Consumer Trust Survey” polled 1,000 US resident 16-65 who are active social media users about their preferences around branded and consumer-generated social content.

INTRODUCTION: USER-GENERATED CONTENT IS KING. MODERN CONSUMERS:

Are 50% more likely to make purchases based on the social content from their neighbor than the latest reality TV star

Trust images created by other consumers more than any other content type (46%), and 76% find content posted by other consumers to be more honest

Are concerned by privacy (27%), with 1 in 5 increasingly using ad blockers

Are irritated by the excessive frequency of ads (60%), especially those that are irrelevant (51%)

Have adopted the use of branded hashtags (60% of all respondents)

Upload over 95 million photos and videos to Instagram each day

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Though every demographic is creating, sharing, and viewing social content with increasing frequency, tapping into this trend is easier said than done. Audiences have different views depending on their backgrounds, so there is no one size fits all approach to overcoming trust issues and taking advantage of user-generated content.

The differences in the priorities and preferences of younger millennials and boomers help illustrate the range of attitudes that exist when it comes to branded and user-generated content. Unsurprisingly, younger respondents are the most active across social channels and most likely to share and view content. Yet, while millennials lead the way, boomers are catching up*. Older demographics have a larger presence on legacy networks than ever before, with over half of consumers 50+ on Facebook, with some even beginning to embrace emerging networks; the Wall Street Journal recently reported that 14% of US smartphone owners over 35 are on Snapchat, up 2% from three years ago.

THE USER-GENERATED GENERATION GAP: AUTHENTIC MILLENNIALS VS SKEPTICAL BOOMERS

*This survey defines 16-24 year olds as millennials and respondents between 50-65 years of age as boomers.

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Brand loyalty and willingness to share content decreases with age, attributable to lower levels of trust and smaller social footprints: consumers 50+ are 20% less likely to share content based on product or brand appreciation than 16-24 year olds. Older consumers are most suspicious of branded content, with 23% not trusting any form – regardless of whether it’s user-generated. Brands must consider this when marketing to older generations, especially since the 50+ demographic is both the largest and fastest-growing in the United States.

On the flip side, millennials have emerged as champions for user-generated content, with 75% craving real content when making purchases. For these shoppers, user-generated content not only resonates as more authentic, but provides greater value, giving audiences an honest perspective on how products look across different ages, sizes and skin tones.

MILLENNIALS VS. BOOMERS

M - 25%B - 90%

much more likely to rank Instagram higheroverwhelming preference for Facebook

Platform

M - 5.6B - 3.8

times a week

times a week

Social Viewing Frequency

M - 53%B - 28%

If I look good

A contest

Aside from appreciation for a product or brand, why do they share?

I want my friends and the brand to know I like the product

I do not use hashtags

M - 54%B - 66%

Hashtag use

UGC

UGC

M - 47%B - 36%

Trust

created by brands

created by brands

- 25%- 24%

Real looking people featured in the image

Focus on the product or service

M -B -

What makes a branded image authentic?

M - 75%B - 50%

overwhelmingly likes photos

Boomers’ preferences are more balanced: only 50% prefer photos and this demographic is the most likely to prefer written content and video

Type of Content

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In a marketing environment where trust is key and user-generated content is king, fashion and beauty brands stand out. The two sectors were consistently ranked higher than other industries in trust and preference for social content, with the fashion industry most trusted overall by consumers.

Highly visual industries shine in a world where consumers consistently view and share pictures of themselves and their favorite products. Yet, many brands have experienced growing pains as they react to consumer preference. The outcry against airbrushing and a lack of model diversity has significantly impacted how consumers regard fashion and beauty marketing efforts across any platform. Consumers have turned against canned photoshoots and endorsements from celebrity “influencers” – elements that have historically been key to marketers in this space. Instead, they crave authentic content from real people.

TRUST IS A GOOD LOOK: FASHION AND BEAUTY BRANDS

FASHION

More than a third of millennials (37%) are likely to check both a brand’s website and user-generated content before deciding whether or not to make a fashion purchase

One in four of millennials would check at least three information sources prior to making a fashion purchase

52% of all respondents are more likely to believe another consumer, as opposed to a celebrity endorsement, about fashion products

About 46 percent of brands say they do or plan to pay money to get on Instagram in the next 12 months — the highest rate of growth compared with other platforms. (Source) Instagram is taking the fashion world by storm. According to digital marketing research there has been a 400 percent increase from last year in the Instagram posts of fashion brands. (Source)

Millennials (84%) are more likely to check at least one form of social media before making a fashion-related purchase, while over 60% of boomers would view no social content

Most trusted sector (ranked 1st by 40% of all respondents)

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BEAUTY

Millennials are more inclined to turn to UGC to learn about beauty products than older generations. They are most likely to view consumer-generated content relating to beauty on YouTube (31%) and Pinterest (22%). 27% of millennials view beauty-centric UGC on platforms other than Pinterest. (Source)

Beauty is poorly received by boomers, ranking below automotive, travel, and nearly every other category

As consumers are taking to Instagram, brands are right behind them, with 95% of beauty retailers already onboard. (Source) The frequency with which brands post has also skyrocketed: up 17% for fashion and 42% for beauty (Source)

Millennials pursuing beauty content check 33% more sources of information before making a purchase than they do for other industries

On average, millennials view three sources of information before making a beauty purchase (30%), making beauty the most-researched industry

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User-generated content has continuously proven to be a valuable asset for brands across industries, targeting audiences of all ages. 27% of shoppers are now turning to user-generated content over traditional commercials or ads prior to making a purchase in order to authentically see products in action. Though boomers and millennials have inherently different behavioral patterns, their attitudes towards consumer content are continuing to evolve. Older generations, for example, are becoming much less skeptical of visual marketing as they become more exposed to it.

For a peek at behaviors to come, look no further than millennials. Once glued to Facebook, millennials’ attention spans have become divided; while 85% of shoppers ages 25+ are more likely to turn to Facebook to view visual content, this number lowers to 69% among those ages 16-24. Having been on social media the longest, younger generations are now eager to explore newer networks

and engage with brands in more diverse ways than older consumers.

Whether in retail, automotive, fashion or beauty, consumers of all ages have spoken: user-generated images play an increasing role in the shopper journey. The time for earned content is now.

TRUST THE CONSUMER: THE BEST BRANDED CONTENT IS EARNED CONTENT

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METHODOLOGYThis research was carried out by market research specialists Censuswide on behalf of earned content platform Olapic. An online survey of 15 questions was completed by 1000 active social media users located in the US. It was carried out in April 2016.

While there are no universally accepted age ranges to describe various demographics, for the purposes of this report, Olapic is broadly defining "young millennials" to include respondents aged 16-24, and 'boomers" as those aged 50+. For comparison, Pew Research Center defines millennials as those currently aged 19-35 and boomers as those currently aged 52-70. (Source)

ABOUT CENSUSWIDECensuswide abides by the code and employs members of the Market Research Society which is based on the ESOMAR principles.

ABOUT OLAPICOlapic is the first earned content platform designed to help brands tap real consumer images and videos to create more personalized and powerful consumer experiences, at scale. We work with hundreds of global brands to collect, curate, and permission content through a combination of machine-learning and human intelligence; activate it across the entire marketing and e-commerce stack, and analyze the impact on revenue, performance, and engagement. Olapic is headquartered in New York City with offices in California; Córdoba, Argentina; and The United Kingdom. For more information on Olapic, visit www.olapic.com.

SOURCESRainie, L. and Perrin, A. (March 22, 2016). "Technology Adoption by Baby Boomers (and everybody else)". Retrieved from here.

Koh, Y. (July 4, 2016). "Snapchat’s Teen Fans Wince as App Catches On With Their Folks". Retrieved from here.

Bradbury, M. (March 17, 2015). “The 7 Incredible Facts About Boomers’ Spending Power”. Retrieved from here.

Pathak, S. (August 11, 2015). “Why fashion and beauty brands love Instagram”. Retrieved from here.

LePage, E. (September 17, 2015). "A Long List of Instagram Statistics and Facts (That Prove Its Importance)". Retrieved from here.

Fromm, J. (August 24, 2016). “Three Things Your Brand Needs To Know To Keep Up With Millennial Women In The Beauty Industry”. Retrieved from here.

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