The Creator Economy: What Is It and Why Should Malaysian Businesses Pay Attention to It?

Businesses are adopting and experimenting with the growing number of digital marketing strategies that are available today, but one stands out for its unparalleled effectiveness: user-generated content (UGC).

As many young social-media users continue to crave authentic and relatable content, harnessing the approachable voices of nano and micro content creators can propel businesses to new heights.

Let's explore why investing in UGC is not merely a choice, but a necessity for any modern business.

Improves Efficiency

As explained in this blog post, there are two types of UGC: organic and paid. While organic UGC is desired for its unprompted creation, that does not make working with paid UGC any less commendable.

For one, businesses do not have to wait for their consumers to voluntarily post content about them for them to kick-start their marketing campaigns. With paid UGC, businesses can source content creators to produce UGCs for them whenever they need them to.

This is especially useful for small and new businesses who are still trying to build their audience and establish their identity on the Internet.

Cult Creative is one of the many creator platforms out there that offers flexible and cost-effective services.

Expands Reach and Brand Awareness

One of the biggest benefits of working with content creators include gaining access to an existing community of followers. Even nano influencers—those who sit at the bottom of the influencer hierarchy—typically have 1,000 to 10,000 followers under their belt. By working with them, businesses will be able to market their products and services to at least 1,000 potential customers. That’s a thousand potential sales!

Humanising Businesses

As social media becomes oversaturated with polished and professional content, younger audiences crave authenticity and relatability. Professionally shot product photos and scripted ads just don’t cut it anymore on social media. Real people want to hear from real people.

Here’s where UGC fills the gap. Businesses can harness the authenticity of content creators to further humanise their brand, adding a touch of the human element to their marketing campaign that so many large companies seem to lack.

And because 69% of consumers trust influencers, friends and family over brands, businesses will be able to boost their credibility when social media users see content creators endorsing their products.

Fosters Creativity

One glaring problem with organic UGC is its unpredictability. Because it relies on the consumers to voluntarily create content, it is near-impossible for businesses to predict what type of content they’ll receive from their consumers. Maybe it’s something good, but that’s a rarity.

But with paid UGC, businesses can set their own standards by providing content creators with briefs and creative directions for the campaign. Not to mention that content creators are masters in the social-media game—they know how to work in favour of their audience and the algorithm—so businesses can be certain that the content they’re paying for is original, trend-setting and high in quality.

With the influencer-advertising market in Malaysia projected to reach approximately US$102.30 million by 2028, now is the perfect time to invest in UGC.

Platforms like Cult Creative offer flexible and cost-effective UGC packages that suit the marketing needs of every company, from new businesses to established companies. They make it really easy to dive into this exciting and new marketing strategy.