User - Generated Content Marketing – Effectiveness and Application | Final report content marketing

lOMoAR cPSD| 47206071 MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY
FACULTY OF LOGISTICS -INTERNATIONAL TRADE FINAL REPORT
TOPIC: USER-GENERATED CONTENT
MARKETING – EFFECTIVENESS AND APPLICATION Course Title : Electronic Commerce Course ID : EC201DE01 Class ID : 1174 Lecturer : Ngo Minh Tra (Ms.) Group : 3 Students :
Nguyễn Như Cát Tiên 22014772 Phan Thanh Trường 22000257 Quách Nhật Thy 22000441
Nguyễn Ngọc Hải Đông 22014476 Võ Thị Minh Như 2180695 22013025
Trần Nguyễn Hữu Nhân
Ho Chi Minh City, 12/2022 i lOMoAR cPSD| 47206071 lOMoAR cPSD| 47206071 FINAL REPORT
TOPIC: USER-GENERATED CONTENT
MARKETING – EFFECTIVENESS AND APPLICATION : Electronic Commerce Course Title : EC201DE01 Course ID : 1174 Class ID : Ngo Minh Tra (Ms.) Lecturer : 3 Group Students :
Nguyễn Như Cát Tiên 22014772 Phan Thanh Trường 22000257 Quách Nhật Thy 22000441
Nguyễn Ngọc Hải Đông 22014476 Võ Thị Minh Như 2180695
Trần Nguyễn Hữu Nhân 22013025
Ho Chi Minh City, 12/2022 TASK DISTRIBUTION lOMoAR cPSD| 47206071
No. Student ID Full name Assigned Task Level of Accomplishment 1 22014772 Nguyễn Như Cát Tiên Part 3; 4; 5 100% Conclusion, Introduction 2 22000257 Phan Thanh Trường Part 1; 3 100% Synthesize 3 22000441 Quách Nhật Thy Part 3;4;5 100% 4 22014476 Nguyễn Ngọc Hải Đông Part 3; 4; 5 100% 5 2180695 Võ Thị Minh Như Part 3 ;4 100% Acknowledgments 6 22013025 Trần Nguyễn Hữu Nhân Part 1 ;4 100% HONOR PLEDGE
“I have read and understood the behaviours of academic integrity violation.
I affirm that I have not given or received any unauthorised help on this assignment, and that this work is my own”. Date: 29 / 12 /2022 (Name and signature) Full name Confirmation Nguyễn Như Cát Tiên ii lOMoAR cPSD| 47206071 Phan Thanh Trường Quách Nhật Thy Nguyễn Ngọc Hải Đông Võ Thị Minh Như Trần Nguyễn Hữu Nhân
RECOMMENDATIONS OF LECTURER iii lOMoAR cPSD| 47206071 ACKNOWLEDGMENTS
Our team would like to express our deepest gratitude to the contributions not only of the
team members but also to the supporters, whether directly or indirectly, in this final report of our group.
To be able to complete this final report, the team would like to thank Ms. Ngo Minh Tra,
a lecturer at Hoa Sen University. She enthusiastically guided and answered the lessons,
enthusiastically guided and helped our group a lot in this final report.
And thank you to Hoa Sen University for allowing us to study E-Commerce. Without the
knowledge of the subject and the teaching of the teachers in this subject, we would not
have been able to make a report that understands how important user-generated applications.
Also thank the team members for their efforts, best efforts, solidarity, enthusiasm -
enthusiasm with this final report. Thanks to that, the report this term can be completed on
time and on time for her and Hoa Sen University. iv lOMoAR cPSD| 47206071 TABLE OF CONTENTS
ACKNOWLEDGMENTS .................................................................................................... iv
TABLE OF CONTENTS ....................................................................................................... 5
LIST OF ACRONYMS .......................................................................................................... 8
INTRODUCTION .................................................................................................................. 1
1. THEORETICAL OVERVIEW ......................................................................................... 2
1.1. Overview of E-commerce ........................................................................................... 2
1.1.1. Definition of E-commerce .................................................................................... 2
1.1.2. Major trends in E-Commerce ............................................................................. 2
1.2. Overview of User-generated content marketing ...................................................... 4
1.2.1. The concept of Content Marketing ..................................................................... 4
1.2.2. The concept of User-Generated Content Marketing ........................................ 5
1.2.3. The role of User-Generated Marketing .............................................................. 5
1.2.4. Types of User-Based Content Marketing ........................................................... 7
2. UGC IN SOCIAL MEDIA AND E-COMMERCE SITES ............................................. 9
2.1. UGC Marketing in Social media ............................................................................... 9
2.1.1. Facebook ............................................................................................................... 9
2.1.2. Instagram ............................................................................................................ 11
2.1.3. Tiktok .................................................................................................................. 12
2.1.4. Youtube ................................................................................................................ 14
2.2. UGC Marketing in E-commerce sites ..................................................................... 19
2.2.1. Review and Rating ............................................................................................. 20
2.2.2. Affiliate ................................................................................................................ 23
2.2.3. Campaign ............................................................................................................ 25
3. OTHER PLATFORMS CREATE UGC MARKETING ............................................. 25
3.1. Google Review ........................................................................................................... 25
3.2. Shopify ....................................................................................................................... 27
3.2.1. Types of UGC in Shopify ................................................................................... 27
3.2.2. Shopify’s tools supporting UGC ....................................................................... 30
4. ANALYSIS AND ASSESSMENT OF UGC MARKETING ........................................ 32
4.1. Advantages of UGC Marketing ............................................................................... 32
4.1.1. UGC on Social media and E-commerce sites ................................................... 32
4.1.2. UGC Marketing in Other platforms................................................................. 35
4.2. Limitations of UGC Marketing ............................................................................... 37 lOMoAR cPSD| 47206071
4.2.1. UGC Marketing on Social media and E-commerce sites ............................... 37
4.2.2. UGC Marketing in Other platforms................................................................. 38
4.3. Case Study ................................................................................................................. 39
5. RECOMMENDATIONS ................................................................................................. 41
5.1. UGC Marketing on Social media and E-commerce sites ...................................... 41
5.2. UGC Marketing in Other platforms ....................................................................... 42
CONCLUSION ..................................................................................................................... 43 vii REFERENCES
................................................................................................................... xiii lOMoAR cPSD| 47206071 viii
LIST OF FIGURES
Figure 1- Retail E-Commerce sales worldwide 2014-2025 ................................... 3
Figure 2- Stackla survey on the authenticity of branded content UGC. ................ 7
Figure 3- The usage of social media around the world .......................................... 9
Figure 4- Facebook users ...................................................................................... 10
Figure 5. Tools on Facebook ................................................................................ 10
Figure 6- Marketplace on Facebook ..................................................................... 11
Figure 7- UGC as a post on Instagram ................................................................. 12
Figure 8- Reels on Instagram. .............................................................................. 12
Figure 9- Creator in the coding field .................................................................... 15
Figure 10- Creator in the beauty field .................................................................. 15
Figure 11- Converting video to GIP ..................................................................... 16
Figure 12- short videos on Youtube ..................................................................... 17
Figure 13-The State of User-Generated Content 2022 ......................................... 19
Figure 14- Shopee's review policy ....................................................................... 20
Figure 15- Coin exchange interface ..................................................................... 21
Figure 16- Example of Customer’s Reviews ....................................................... 22
Figure 17- Interface after reviewing Tiki. ............................................................ 23
Figure 18- Tiki Affiliate Marketing Program ....................................................... 24
Figure 19- Shopee Blog - “Review hay nhan ngay ngan xu” .............................. 25
Figure 20- Example of Review on Google Review ............................................. 26
Figure 21- Logo Shopify ...................................................................................... 27
Figure 22- Review of Shopify .............................................................................. 28
Figure 23- “Are ratings and reviews important for your organization?” ............. 33
Figure 24- Business performance on Shopify ...................................................... 36
Figure 25- Ecommerce Platform Market Share in USA 2022 ............................. 37
Figure 26- "Stranger Things" UGC ...................................................................... 40
Figure 27- The #ShotOnIphone campaign ........................................................... 40 ix lOMoAR cPSD| 47206071 LIST OF ACRONYMS UGC marketing
User-generated content marketing UGC User-generated content B2C Business To Consumer B2B Business to Business EC E-commerce x lOMoAR cPSD| 47206071 INTRODUCTION
E-Commerce or EC for short has become a very familiar phrase to us today.
Regardless of whether it is a customer or a supplier, we all need to go through
EC because it is a space for us to exchange information and transact. During
that exchange, the platforms in the EC space must integrate a lot of tools to
promote the transaction process to bring profit to the provider and provide a
great experience for customers when using. product or service.
Before 2020, the tools to help speed up the transaction process are usually
tools in the field of information technology. Then, after 2020, the outstanding
tool in speeding up that transaction is suddenly a tool in the field of Marketing.
2020 is a milestone for the explosive development of EC because it is the result
of a pandemic that the whole world has suffered.
Customers have almost completely changed their buying behavior, moving
from offline to online and thus leading to a tool or to be more precise, a new
form of content marketing that is user-generated.
Through this report, readers will first get an overview of E-Commerce and
User-generated content marketing. Next, readers will be consulted about how
User-generated content marketing is applied on different platforms. Here,
readers will find different types of User-generated content marketing, and how
these types of content operate are also completely different. The content types
or platforms mentioned in the article all have their limitations and are detailed
to bring the most completeness for readers to refer to the two aspects of
Usergenerated content marketing. 1 lOMoAR cPSD| 47206071
1. THEORETICAL OVERVIEW
1.1. Overview of E-commerce
1.1.1. Definition of E-commerce
E-commerce is simply understood as "involving the use of the Internet, the
World Wide Web (Web), and mobile applications and browsers running on
mobile devices to transact business." (Kenneth C. Laudon, 2021). A further
definition of e-commerce is "digital commercial transactions between
organizations and individuals," which includes all business dealings mediated
by electronic means over the Internet, the Web, and/or mobile devices. Crossing
organizational or individual boundaries to exchange value for goods and
services is referred to as a commercial transaction ." (Kenneth C. Laudon, 2021).
1.1.2. Major trends in E-Commerce
First, in business, all forms of e-commerce have recently continued to grow
rapidly. Retail e-commerce has grown at a rate of more than 20% per year over
the last few years, and it is expected to reach nearly $4.3 trillion by 2020. Retail
e-commerce is rapidly expanding. even faster (at a rate of more than 25% per
year) and reach nearly $2.8 trillion by 2020. Social networks such as Facebook,
Pinterest, and Instagram promote social e-commerce by offering advertising
Reporting, search, and buy buttons that enable customers to purchase the
product. Local e-commerce is being fueled by a surge in demand for ondemand
services. B2B e-commerce, far outnumbering all other forms, is also
consolidating and growing. The Covid-19 pandemic, which emerged in the first
quarter of 2020, is expected to result in a gradual and long-term. ." (Kenneth C. Laudon, 2021). 2 lOMoAR cPSD| 47206071
Figure 1- Retail E-Commerce sales worldwide 2014-2025
( Source: Statista 2022)
Second, mobile platforms based on smartphones and tablets have finally
had a significant technological impact, propelling explosive growth in mobile
advertising and digital transformation. Mobile e-commerce is a genuine thing
today. Mobile messaging apps like Facebook Messenger, WhatsApp, and
Snapchat have provided an alternate platform for communication that is also
starting to be used for business. Because it allows for the storage of consumer
applications and content on cloud servers and the delivery of it to mobile
devices, cloud computing is closely tied with the development of the mobile
platform in addition to desktop PCs. The Internet of Things and big data
analytics are two other important tech trends (IoT).
Finally, on a social level, the Internet and mobile platforms create an
environment in which millions of people can create and share content, form
new social connections, and strengthen existing ones through social media.
Social networks, photo and video sharing websites and applications blogging
websites and applications, etc… ." (Kenneth C. Laudon, 2021). 3 lOMoAR cPSD| 47206071
These are also the main content that will be covered in the report's subsequent sections.
1.2. Overview of User-generated content marketing
1.2.1. The concept of Content Marketing
According to CMI1, Content Marketing is: “ a marketing technique based
on creating and publishing relevant, valuable content to attract and gain the
influence of customers. Objective the goal of achieving profitable actions from
the customer”. And in the field of E-commerce, (Libert, 2015) defines:"
Content marketing creates a content campaign for a brand and then tries to
secure placement on a variety of websites. Examples of content include articles,
infographics, case studies, interactive graphics, white papers, and even
traditional press releases. Content marketing aims to increase visitors to a
company’s website, organic search rankings, and brand engagement via social media.”
In general, Content marketing is transmitted on social networking platforms
such as Facebook, Zalo, Instagram, etc., depending on user needs and
marketing needs to focus on making and providing high-value content related
to products and services. The main purpose is attracting and retaining users,
thereby creating an end to behavior and converting them into business
customers. Besides, Content Marketing also helps readers improve their
knowledge in life by sharing information about different areas of daily life.
1 Content Marketing Institute: one of the leading content marketing websites, as well as a pioneer in this field. 4 lOMoAR cPSD| 47206071
1.2.2. The concept of User-Generated Content Marketing
According to (George E. Belch, 2015) "User-generated content (UGC) is an
advertising and/or other forms of content provided by consumers or other nonprofessional sources.".
In general, User-generated content (UGC), means any form of content
created and shared by users /consumers who are customers based on their
experiences, views, ideas, or feedback through online reviews, product images,
customer replies, products video,… Nowadays, digital platforms, especially
social networks, are known as "the heart" of user-generated content.
1.2.3. The role of User-Generated Marketing
User-generated content has a variety of benefits, including being free,
engaging your fan base of customers, and increasing the likelihood that search
engines will index your website if the content is constantly changing. Along
with blogs and the internet, UGC has also all helped to create large new online
audiences where the content is provided by users. These audiences have greatly
expanded marketers' ability to reach new potential customers in nontraditional
media formats. Completely new marketing techniques are emerging. By giving
users more market power and the ability to "talk back," these same technologies
expose marketers to the risk of alienating the public. (Kenneth C. Laudon, 2021)
In addition, customers nowadays rarely believe brand marketing
campaigns, because they rely on and trust the reviewers, opinions, and real-life
experiences of other customers when shopping online. Many customers trust
content created by other users to make purchases online because it provides
users with more authentic reviews. This can be understood because customers
want to know about the reality of the product or brand they are investing in. Therefore, 5 lOMoAR cPSD| 47206071
UGC plays important roles such as
• Building trust between customers and its brand: It can be seen that
UGC plays a very important role for businesses today as it can build
trust between customers and its brand. That is the premise for
businesses to build sustainable and long-term relationships with
customers, turning them into loyal customers.
• Cost savings for businesses: Because using the customer's own
experiences to offer a wide and practical way of marketing and
promotion will help businesses save a lot of costs for other marketing means.
• It is a bridge to help businesses hear customers' opinions more
clearly: By reading and hearing the customer's opinions, businesses
can better understand the customer experience and the desire to
change because of unsatisfactory business.
• Helps establish brand loyalty and grows community: UGC gives
customers a unique opportunity to participate in a brand’s growth
instead of being a spectator. This influences brand loyalty and
affinity in a big way because people thrive off being part of
something greater than themselves, and creating UGC allows them
to be part of a brand’s community. (Beveridge, 2022).
In short, UGC also opens up conversations between a brand and consumer,
and this level of brand interaction helps build and grow an engaged community.
Sharing audience content also works to develop and deepen audience/business
relationships, driving more brand loyalty. 6 lOMoAR cPSD| 47206071
Figure 2- Stackla survey on the authenticity of branded content UGC.
(Source: Business Wire)
1.2.4. Types of User-Based Content Marketing
UGC is also extremely diverse, based on the form, it can be divided into the following types:
• Review: this is a very popular form of UGC with high reliability. Everyone
is free to give their opinion, and many platforms use this method. You can
easily see reviews anywhere on the internet such as Google,
Amazon/Shopee/Lazada, and Facebook fan page,... Online retailers have
been very successful in creating a large place for users to review and display
product reviews that are being published. Besides, you can see the review
of a coffee shop or a resort in detail, including their last use.
• Blog Posts: Bloggers are a great source of reviews, whether they're fashion
or technology, or food bloggers, they take the time to write down their 7 lOMoAR cPSD| 47206071
experiences as well as give a few reviews regarding the subject product,
service, or brand. Many Blog sites work towards testing new products or services and writing reviews.
• Content on Social Networks: There is countless UGC Content on social
networking platforms such as Facebook, Tiktok, Instagram, and Tumblr,...
Today's marketers are especially interested in this access channel because
of the large number of users, coverage, and rapid spread of information on social networks.
• Video image: Consumers love to post pictures of their new purchases on
social media, often with a quick intro, a few compliments, or a hashtag. It
could be the latest collection of a fashion brand, the latest tech gadgets on
Facebook, or a tweet about the best coffee shop,...
• Forum content: Forums are a method of sharing knowledge that has been
around since the early days of the Internet. Although the number of users
on the forums today is not as large as at the "golden age" a few years ago,
we cannot deny the influence of UGC Content on this channel. Forum
members provide a variety of content in the form of performance tips, usage
guides, workarounds, as well as recommendations, and reviews. (Huyền, 2021)
In general, with the above forms, we can divide UGC into 3 main types through
platforms to facilitate analysis in the next sections of the report:
• UGC Marketing in Social Media (Facebook, Instagram,…)
• UGC Marketing in E-commerce site (Shopee, Tiki,…)
• UGC Marketing in other flatforms: (Shopify, Google,…). 8 lOMoAR cPSD| 47206071
2. UGC IN SOCIAL MEDIA AND E-COMMERCE SITES
2.1. UGC Marketing in Social media
Social media is an internet-based channel created for people to connect, share
ideas, share information, feelings, images, and videos... With the powerful
interactivity of social networks, it is recognized as one of the most effective online marketing channels selected.
Nowadays, Social media is always present in daily life, it helps people share
information more quickly and effectively than traditional media. Social media also
helps increase customer interaction and brand awareness. (Hạnh, marketingai.vn, 2022)
Figure 3- The usage of social media around the world (Source: Oberlo) 2.1.1. Facebook
Facebook is a social networking site that makes it easy to connect and share
online with family and friends anywhere in the world. On the Facebook platform,
any user can post, comment, react, share photos and post links to news or other
interesting content on the website, chat live, and watch short-form videos. Shared
content may be publicly accessible, or may only be shared between a select group 9 lOMoAR cPSD| 47206071
of friends or family, or with a single person. Nowadays Facebook is currently the
largest social media platform in the world with 2.94 billion users. (Đỗ, 2020)
Figure 4- Facebook users (Source: DataReportal, 2022)
Facebook has a lot of tools to help users create their own UGC. In addition to
posts, images, videos, and stories, Facebook also has tools that other platforms do
not have such as marketplaces, groups for community discussion, etc,…
Figure 5. Tools on Facebook
The special feature of Facebook is that it also has groups, and even a
marketplace so that users can freely post content to exchange with each other. The 10