UGC Formula in 2025

July 8, 2025

In a digital world overflowing with content, a fundamental shift is underway. Consumer trust in traditional advertising is declining, and the rise of artificial intelligence means our feeds are more saturated than ever.1 Against this backdrop, a powerful truth has emerged: authenticity is the new currency. For Australian businesses looking to cut through the noise in 2025, the most potent marketing asset isn't a slick, high-budget ad campaign; it's the genuine, unvarnished voice of their customers. A staggering 6 in 10 consumers now believe that User-Generated Content (UGC) is the most authentic form of marketing available.3

User-Generated Content is any form of content be it images, videos, reviews, social media posts, or even blog articles that is created by everyday people and customers rather than the brand itself.4 It is the digital evolution of word-of-mouth, scaled for the internet age. It’s the photo a customer posts on Instagram of their new outfit, the unboxing video of a subscription box on TikTok, or the detailed review left on a product page.6

As we navigate 2025, mastering a UGC strategy is no longer a peripheral tactic for Aussie brands; it is a core business imperative. Faced with growing consumer scepticism and an explosion of AI-generated media, the ability to foster and leverage authentic, human-created content is fundamental to building genuine trust, cultivating a loyal community, and driving sustainable growth.1 The proliferation of AI content, while a powerful tool for efficiency, has inadvertently made true human experience a scarce and therefore more valuable commodity. UGC serves as verifiable, third-party proof of a brand's value in a world where authenticity is under constant scrutiny. It is the antidote to the modern marketing trust deficit.

This guide will provide a comprehensive blueprint for Australian businesses to not only understand the power of UGC but to actively create and leverage it to win in 2025. We will explore the data-backed importance of authenticity, dissect the various types of UGC, provide a step-by-step framework for creating scroll-stopping video content, and analyse real-world campaigns from successful Aussie brands.

UGC by the Numbers

The foundational power of User-Generated Content lies in its unparalleled ability to build trust and authenticity at scale. It circumvents the inherent scepticism consumers have towards brand messaging because it originates from a source they inherently trust more: other people like them.2 In the Australian market, this is particularly resonant, with a clear trend showing that authenticity and genuine engagement are now prized far more highly than simply chasing the latest viral trend.8

The statistical evidence supporting UGC's effectiveness is not just compelling; it's overwhelming. From the perspective of marketers themselves, the verdict is in. An incredible 93% of marketers who leverage UGC report that it performs "notably better" than their own branded content, and 86% are convinced that incorporating it into their paid and owned media directly boosts the effectiveness of their advertising.3 This isn't just a feeling; it's a strategic shift recognised by the industry, with 67% of retailers planning to increase their investment in UGC in the coming year.3

This confidence is a direct reflection of consumer behaviour. Research shows that 79% of consumers feel more comfortable and trusting of brands that showcase user-generated content.7 This comfort translates directly into commercial action, with around 82% of consumers stating they would be more likely to make a purchase from a brand that uses UGC in its marketing.3 The absence of UGC is now a significant commercial risk. More than half of all shoppers (55%) hesitate to buy a product if they can't find any user-generated content about it, and a significant 13% will abandon an online purchase altogether if no UGC is present.3 This data elevates UGC from a simple conversion-booster to a critical conversion-gatekeeper; without it, a growing number of potential sales are lost before they even begin.

Beyond building trust and driving sales, UGC presents a significant financial advantage, particularly for small and medium-sized Australian businesses operating with lean budgets. A remarkable 85% of marketers perceive visual UGC as a more cost-effective option than commissioning traditional professional photography or influencer content.3 This allows brands to generate a steady stream of authentic, high-performing marketing assets without the associated high production costs.

This trend is set to accelerate in the Australian context. Social commerce is rapidly expanding, and the anticipated launch of TikTok Shop in Australia in 2025 is poised to be a "game-changer".8 This development will create a seamless pathway from discovery to purchase, where authentic UGC videos such as product reviews, tutorials, and demonstrations can capture a viewer's attention and lead directly to a sale within the same platform. The decline of organic reach on major platforms further amplifies this need; as it becomes harder to reach audiences for free, the content brands

do promote must be as effective as possible.2 This shift towards authentic, user-driven content is a core reason

Why Online Marketing is Important? in today's digital landscape.9

To provide a clear overview of its impact, the following table summarises the most critical UGC statistics for 2025.

Category	Statistic	Source Snippet(s)
Marketer Perspective	93% of marketers say UGC performs better than branded content.	3
	85% of marketers find visual UGC more cost-effective than pro content.	3
	67% of retailers plan to increase their investment in UGC.	3
Consumer Attitude	6 in 10 consumers believe UGC is the most authentic marketing content.	3
	82% of consumers are more likely to buy from a brand that uses UGC.	3
	55% of shoppers hesitate to buy a product if there is no UGC available.	3
	UGC in emails increases click-through rates by 78%.	3

The UGC Spectrum: A Guide to Content Types in 2025

User-Generated Content is not a single, monolithic entity. It exists across a broad spectrum, from simple text-based feedback to sophisticated video productions. Furthermore, the very definition of a "user" is expanding, creating new opportunities for brands to foster authenticity. Understanding these different types is the first step in building a robust and diversified UGC strategy.

The Classics (The Foundation of Trust)

These are the foundational forms of UGC that have become essential for building social proof and consumer confidence in the digital age.

Product Ratings and Reviews: This is the bedrock of e-commerce trust. Shoppers consistently rank reviews (78%), Q&As (77%), and photos taken by other people (69%) as the most impactful types of UGC for their purchase decisions.3 The most convincing elements within these reviews are their quality and detail (21%), the average star rating (19%), and the sheer number of reviews available (13%).3
Customer Images and Social Posts: These provide powerful visual proof of products being used and enjoyed in real-world settings. Brands like the direct-to-consumer bedding company Parachute have mastered this by encouraging their audience to use the hashtag #MyParachuteHome.5 They then strategically repurpose these customer photos not just on their social media feeds, but in paid retargeting ads. This approach yielded a 35% higher click-through rate and a 60% lower cost-per-click compared to ads that used standard, non-UGC imagery, demonstrating the direct commercial benefit of authentic visuals.5
Blog Posts and Forums: Longer-form UGC, often created by knowledgeable enthusiasts or influencers, provides in-depth analysis that can be highly persuasive. This includes detailed product comparisons, tutorials, or discussions within community-driven platforms like Reddit, which have become treasure troves of candid user feedback.6

The Game Changer: Employee-Generated Content (EGC)

One of the most significant trends for 2025 is the rise of Employee-Generated Content (EGC), a powerful sub-category of UGC where a brand's own team members become its most credible and relatable advocates.1

Definition and Power: EGC is any content created by a company's employees that promotes the brand or its culture. Its power comes from the fact that employees are seen as more trustworthy and authentic than official corporate channels. Their posts resonate more deeply within their personal and professional networks, creating a powerful multiplier effect. In fact, studies show that content shared by employees is reshared up to 24 times more frequently than the same content shared by official brand channels.7
The 2025 Trend: In the coming year, we will see more employees particularly those in customer-facing or social media roles becoming the public "faces of the brand" on platforms like TikTok, Instagram Reels, and LinkedIn.7 This strategy humanises the brand, fosters a deeper emotional connection with the audience, and has the added benefit of boosting internal morale and company culture.7
Strategic Implementation: The emergence of EGC represents a strategic convergence of marketing, human resources, and internal communications. A successful EGC program cannot be run by the marketing department in isolation. It requires a cross-functional approach: marketing defines the goals, HR develops supportive social media policies that encourage advocacy, and internal communications ensures employees are informed, aligned with brand values, and motivated to participate. It reflects a deep integration of the brand's identity into the very fabric of the company culture.

Beyond the B2C Bubble

A common misconception is that UGC is only effective for business-to-consumer (B2C) brands selling tangible products. However, B2B and service-based brands are increasingly adopting UGC to demonstrate value and build community in a more abstract market.7

The B2B Application: Instead of showcasing a product, B2B UGC showcases a result. It allows these brands to demonstrate how their offerings solve real-world business challenges. This approach is more relatable and effectively addresses customer pain points, creating stronger connections with the target audience.7
Practical Examples: An accounting software company can feature video testimonials from small business owners explaining how the software saved them time during tax season. A DIY tool brand can create a campaign encouraging tradespeople and home renovators to share videos of their projects that feature the company's tools.7 For service-based businesses, client case studies and testimonials serve as powerful forms of UGC that build credibility and trust.6

Mastering the UGC Video: Your Blueprint for Scroll-Stopping Content

In the modern social media landscape, video is not just a part of the game it is the game. Short-form video content continues its reign of dominance across platforms like TikTok, Instagram Reels, and YouTube Shorts.2 With 90% of vertical videos boasting a higher watch completion rate than their horizontal counterparts, mastering the art of the short-form UGC video is non-negotiable for any brand seeking to capture attention in 2025.2 This section provides a practical, step-by-step blueprint for creating video content that not only stops the scroll but also drives meaningful action.

The First 3 Seconds: How to Craft the Perfect Hook

The opening of your video is the most critical element. You have a window of just two to three seconds to capture a viewer's attention before they scroll on.11 A successful hook must immediately evoke an emotion curiosity, surprise, empathy, or intrigue and give the viewer a compelling reason to keep watching.

To help brands and creators overcome the "blank page" challenge, the following library categorises effective hooks by their psychological approach, transforming a simple list into a strategic tool. A marketer can select a hook category that aligns directly with their campaign objective, whether it's building brand awareness with an intriguing question or driving sales with a problem/solution framework.

Hook Category	Example Hook (Adaptable)	Psychological Principle	Source Snippet(s)
Intriguing Question	"You won't believe what just happened..."	Curiosity, Anticipation	13
Problem/Solution	"Struggling with [pain point]? You need [brand product]..."	Relatability, Solution-focus	11
Benefit-Driven	"How I got [benefit] in [time frame]..."	Aspiration, Efficiency	11
Unpopular Opinion	"Unpopular opinion, but [product] is better than [competitor]..."	Controversy, Engagement	11
Viral/Hype	"This is the reason this [brand product] went viral..."	Social Proof, FOMO	11
Direct Address	"Calling all [target audience]..."	Personalisation, Relevance	11
Confession/Secret	"I have a confession..." / "I'm finally sharing my secret to..."	Intimacy, Exclusivity	13

The Anatomy of a High-Converting UGC Video (The DR Formula)

Once you have a powerful hook, the rest of the video needs a structure that can reliably persuade and convert. The Direct Response (DR) formula provides a proven, step-by-step framework for scripting compelling UGC videos that guide the viewer from curiosity to action.12

The formula is as follows: Hook → Problem → Solution → Value Prop → Social Proof → CTA.

Hook: Begin with an attention-grabbing hook from the library above to secure the viewer's attention in the first 2-3 seconds.12
Problem: Immediately present a clear and relatable pain point that your target audience experiences. Whether it's frizzy hair, a messy room, or inefficient software, showing this struggle builds an instant connection and makes the viewer feel understood.12
Solution: Introduce your product or service as the hero of the story the specific solution to the problem you just presented.12 This is the "aha!" moment where the viewer sees a path to resolving their frustration.
Value Prop (Value Proposition): With countless potential solutions on the market, you must explain why your product is the best choice. This is where you highlight its unique benefit or feature. Don't list every feature; focus on the one or two key differentiators that genuinely make it stand out from the competition.12
Social Proof: Build trust and dismantle purchase anxiety by showing that others have already validated your solution. This can be done quickly and effectively by flashing 5-star customer reviews on screen, mentioning a prestigious award, or showing brief clips of other happy customers using the product. This step provides concrete evidence that your claims are credible.12

The Final Word: Crafting a Call to Action That Converts

The Call to Action (CTA) is the final and most crucial step. It's the instruction that tells your engaged viewer exactly what to do next. An effective CTA bridges the gap between passive viewing and active conversion.16

Here are the best practices for crafting a CTA that works in 2025:

Be Clear and Direct: Avoid ambiguity or overly clever wording. The user should instantly understand the action and the outcome. Simple, direct phrases like "Shop Now," "Start Your Free Trial," or "Download Your Free Guide" are highly effective.16
Use Action-Oriented Language: Start your CTA with a strong verb that creates a sense of momentum and direction. Words like "Get," "Start," "Claim," "Discover," and "Join" are more motivating than passive alternatives.17
Create Urgency (Genuinely): Tapping into the "fear of missing out" (FOMO) can prompt immediate action. Phrases like "Shop before it's gone!" or "Limited time offer ends Friday" encourage users to act now rather than later. However, this tactic must be used authentically; creating false scarcity can erode trust.16
Highlight the Benefit: The most powerful CTAs shift the focus from what you want the user to do to what the user will gain. Instead of a simple "Sign Up," a more compelling version is "Sign Up and Get 20% Off." Frame the action around the value it delivers to the customer.16

A powerful CTA is the engine of conversion in your video, a key principle we explore further in our guide to Ecommerce Marketing.9

Putting It All into Practice: Lessons from Successful Aussie UGC Campaigns

Theory and frameworks are essential, but the most valuable lessons often come from analysing real-world successes. By examining campaigns that have resonated deeply within the Australian market, we can extract practical, actionable strategies that local businesses can adapt and implement. These case studies reveal that the most impactful UGC campaigns are not just clever marketing initiatives; they are often a direct reflection of a brand's core operational strategy.

Case Study 1: Coca-Cola's "Share a Coke" – The Power of Personalisation at Scale

The Campaign: Originating in Australia in 2011, the "Share a Coke" campaign was a masterstroke of participatory marketing. Coca-Cola replaced its iconic logo on bottles and cans with hundreds of the most popular first names, explicitly inviting people to find their name or the name of a friend and share the experience on social media with the #ShareaCoke hashtag.30
The Results: The campaign was an immediate and massive success. In Australia alone, it led to a 7% increase in sales volume within the first month. Globally, it sparked over 100 million social media interactions as consumers eagerly shared photos of their personalised bottles.30
The Takeaway: Coca-Cola didn't just ask its customers to create content; it gave them a compelling, personal reason to do so. The product itself became the catalyst for the story. This required a significant operational shift in production and logistics, demonstrating that the most powerful UGC is often born from strategies that go far beyond the marketing department. The lesson for Aussie businesses is to think about how the product, service, or experience can be made inherently personal and share-worthy.

Case Study 2: Canva – Building a Community on Co-Creation

The Campaign: The success of Australian-founded design platform Canva is intrinsically linked to user-generated content. Its entire business model is a form of UGC at its core.32 Canva empowers its users with intuitive tools to create their own professional-quality designs. Crucially, it then encourages those users to share their creations and even contribute templates back to the platform for others to use, fostering a vibrant ecosystem of co-creation.32 Their social media strategy heavily relies on showcasing these user-generated designs and celebrating their customers' success stories.33
The Results: This community-centric approach has propelled Canva to become one of the world's most valuable startups, built on the foundation of a massive, loyal, and highly engaged user base.32
The Takeaway: The ultimate UGC strategy is to empower your users. Provide them with the tools, platform, and inspiration to be creative with your brand. By celebrating their work and making them feel like partners in the brand's journey, you transform customers into passionate advocates who generate authentic marketing content as a natural byproduct of using your product.

Case Study 3: HiSmile – The Influencer-to-UGC Flywheel

The Campaign: Gold Coast-born teeth whitening brand HiSmile executed a brilliant go-to-market strategy that perfectly illustrates the relationship between influencer marketing and organic UGC. They began by investing their initial budget into seeding products with regional micro-influencers, asking for honest video reviews and feedback.34 This initial wave of credible, influencer-generated content created powerful social proof. It demonstrated that trusted figures were using and endorsing the product, which in turn inspired a massive, secondary wave of organic UGC from everyday customers who wanted to emulate the trend and share their own results.32
The Results: This flywheel effect where paid/gifted influencer content ignites organic user content catapulted HiSmile from a small startup with a $20,000 investment into a global, multi-million dollar e-commerce powerhouse, built almost entirely on the back of its social media presence.32
The Takeaway: Influencer marketing and UGC should not be viewed as separate strategies; they are two interconnected parts of a single ecosystem. Use trusted influencers (of all sizes) to kickstart the conversation, build initial credibility, and generate high-quality assets. This initial push then fuels the more scalable, and arguably more authentic, groundswell of organic UGC from the wider community.

Conclusion: Your Turn – How to Kickstart Your UGC Strategy Today

Throughout this guide, a clear and consistent picture has emerged. In the competitive Australian market of 2025, authenticity is not a buzzword; it is a prerequisite for growth. User-Generated Content is the single most powerful vehicle for building that authenticity, fostering genuine community, and driving commercial success. The dominance of short-form video has created a new language of marketing, one that is conversational, relatable, and human-centric. The brands that thrive will be those that move from monologue to dialogue, embracing a strategic approach to content that empowers their customers to become their most effective marketers.

For businesses ready to take the first step, here is a simple, actionable checklist to kickstart your UGC strategy today:

Define Your Goal: Before you do anything else, be specific about what you want to achieve. Is your primary objective to increase brand awareness on social media? Or is it to generate social proof and reviews for a specific product to increase its conversion rate? A clear goal will guide every subsequent decision.38
Create a Branded Hashtag: This is your digital filing cabinet. Create a hashtag that is unique to your brand, memorable, and easy to spell. Promote it across your social media bios, website, and even on your packaging. This gives you a simple way to track, find, and engage with all the content your community creates.5
Start Small: Encourage Reviews: This is the easiest and most foundational form of UGC to generate. Actively ask your customers for reviews on platforms like Google, your own website, or your Facebook page. Make the process as frictionless as possible by sending them a direct link via email after a purchase.39
Launch a Simple Campaign: You don't need a massive budget to inspire action. Run a simple contest or offer an incentive. Ask customers to share a photo or video of them using your product with your branded hashtag for a chance to be featured on your page or win a prize. With 77% of consumers open to submitting UGC in exchange for a reward, this is a highly effective tactic.3
Empower Your Team: Don't forget the powerful resource you have internally. Start a conversation with your employees about Employee-Generated Content (EGC). Identify team members who are passionate about the brand and would be natural, enthusiastic advocates online.7

In the Australian market of 2025, the brands that win won't be the ones that shout the loudest, but the ones that listen the closest and empower their community to tell their story for them. Your customers are already your best marketers it's time to give them the microphone.

Ready to build a marketing strategy that fosters genuine connection and drives real growth? Contact Odo Marketing today for a free consultation and let's build your brand's community together.40

Works cited

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Video Style	Psychological Goal	Key Elements	Best For	Source Snippet(s)
POV (Point of View)	Immersion & Relatability	First-person camera angle, "POV:" text overlay, specific scenario.	Service experiences, product-in-use, creating empathy.	13
GRWM (Get Ready With Me)	Parasocial Connection & Normalisation	Chatty/storytelling voiceover, routine-based, product application.	Beauty, fashion, lifestyle products, subtle product placement.	13
Day in the Life	Aspiration & Integration	Follows a person's routine, shows product seamlessly used in daily life.	Tech, food, fitness, home goods showing how a product fits into a lifestyle.	13

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