Deloitte: Creator videos hold potential for retailers

A new survey reveals consumer attitudes toward user generated content (UGC).

According to the Annual Digital Media Trends Survey from Deloitte, about 50% of surveyed consumers say user generated content (UGC) videos, such as creator and influencer videos, help them discover new products or services to buy.

Other interesting findings on consumer attitudes toward UGC include:

• Nearly 70% of Gen Z and millennial respondents say they always end up spending more time watching UGC than planned.
• Half of Gen Z and millennial respondents report discovering new music or artists through videos on a UGC service.
• Roughly four in 10 respondents agree that it's hard to determine when UGC videos are "sponsored" or contain an "advertisement." Forty-six percent say that if an online creator they trust has reviewed a brand's product, they are more likely to trust that brand.

The survey also asked respondents about some other attitudes toward digital media:

• Almost one-third (32%) of respondents consider online experiences to be meaningful replacements for in-person experiences. For Gen Z and millennial respondents, it's 50%.

• Younger generations like Gen Zs and millennials seek more immersion and connection, drawing them to playing video games and watching UGC. Forty-eight percent of Gen Z and millennial respondents spend more time interacting with others in social media than in the physical world; and 40% of these respondents socialize more in video games than in the physical world.

"People have an expectation that their digital media will provide more than just entertainment — they also expect to find real meaning and fulfillment,” said Jana Arbanas, vice chair, Deloitte LLP and U.S. telecom, media and entertainment sector leader. “Video games and user-generated content can offer more interaction, socialization and utility, and their popularity with younger generations could potentially transform the media and entertainment industry. Companies should better understand this evolving landscape so they can drive measurable value, foster brand loyalty and build deeper relationships."

The "Digital Media Trends," 17^th edition, survey was fielded by an independent research firm in November 2022 among 2,020 U.S. consumers, ages 14 and older.

Bazaarvoice: Advertisers move toward creators

More than half (52%) of advertising decision-makers in a recent Bazaarvoice survey are considering moving their budget away from paid advertising efforts to owned content (such as a company’s social media pages) and earned content (such as third-party social media posts) creation.

Another 30% of respondents are already doing so. Close to half (47%) of respondents are considering moving 10% or more of their budget to owned and earned content creation, away from paid advertising efforts.