Monetize Data Based on User-Generated Content Digital Marketing

Strategy Research

Xiaoxiao Ge

1,*

and Ziyou Liu

Admiral Farragut Academy Tianjin, Tianjin, China

Huanqiu Education, Guangzhou, Guangdong, China

Keywords: User Generated Content (UGC), Digital Marketing, Data Monetization, Incentive Mechanism, Content

Innovation.

Abstract: With the rise of social media and digital platforms, user generated content has become an important asset for

brand marketing. Through incentive mechanisms, creative support, content innovation, and other means,

enterprises fully tap into the potential of UGC, promote interaction between brands and users, and realize the

transformation of data value. I hope to provide a new marketing strategy for enterprises, which is to achieve

high-value digital marketing through refined UGC strategies and optimize brand market performance. This

article focuses on the audience group, incentive mechanism, creative support, content innovation, and

differentiation of UGC, and analyzes how to promote the creation and dissemination of user content through

digital marketing methods, thereby improving the brand's market penetration and commercial revenue.

Reasonable incentive mechanisms and innovative content creation support are conducive to improving the

quality of UGC creation and user engagement. Differentiated content strategies can make brands stand out in

a fiercely competitive market. Enterprises should attach importance to the potential of UGC, comprehensively

enhance the creation, dissemination, and monetization capabilities of UGC content, and bring sustained

market competitiveness to brands.

1 INTRODUCTION

With the rapid development of the Internet, digital

marketing has gradually become the mainstream way

of enterprise marketing. User-generated content

(UGC), as a new form of content production, is

gradually becoming the mainstream of marketing

strategies and an important means for many brands to

achieve data monetization. The emergence of UGC

has brought closer interaction between brands and

consumers, provided consumers with a richer

platform for expression, increased brand awareness

and loyalty, and provided new business opportunities

and revenue sources. However, the application of

UGC in digital marketing also faces challenges. How

to monetize data, enhance user engagement, and

innovate marketing strategies is an urgent problem

that needs to be solved in the current field of digital

marketing. This study will analyze the connotation

and benefit model of user-generated content,

summarize some problems in its practical application,

Corresponding author

and finally propose targeted digital marketing

strategies, hoping to help enterprises better realize

data monetization and improve marketing

effectiveness.

2 OVERVIEW AND BENEFIT

MODELS OF USER-

GENERATED CONTENT

RESEARCH

2.1 Definition of User-Generated

Content

The concept of User Generated Content (UGC) was

put forward by the network publishing and new media

publishing circles in 2005. It refers to the content

created by users rather than professional companies

or media institutions and published publicly on the

Internet platform. It is a new network information

Ge, X. and Liu, Z.

Monetize Data Based on User-Generated Content Digital Marketing Strategy Research.

DOI: 10.5220/0014280500004942

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 775-782

ISBN: 978-989-758-791-7

775

resource creation and organization mode under the

Web 2.0 environment. This type of content usually

includes various forms such as text, images, videos,

audio, etc., and its motivation often comes from the

user's personal interests, needs, or emotional

expression. Its publishing platforms include social

media such as Weibo, blogs, video-sharing websites,

Wikipedia, online Q&A, SNS, etc. (Zhao et al., 2012).

With the rise of social platforms, short video

platforms, and e-commerce platforms, UGC has

gradually become an important part of Internet

content.

2.2 Characteristics of User-Generated

Content

2.2.1 Based on Online Publishing as a

Prerequisite

It emphasizes that the Internet platform provides

space for creators to express and share independently.

Through channels such as social media, blogs,

forums, and video platforms, users can not only

consume content, but also actively participate in

creation, publishing, and dissemination. This form

breaks the traditional one-way dissemination model

of publishing, giving ordinary users the same

expression rights as professional authors, making

content creation more diversified and personalized,

while also promoting the rapid flow and extensive

interaction of information. Therefore, user generated

content focuses more on published content, including

both public websites and social networking sites

targeting specific audiences (Fan et al., 2009).

2.2.2 Innovation

User generated content emphasizes more on the

innovation of the content, as it originates from the

personal creativity and unique perspectives of the vast

number of users. Compared with traditional

professional creation, UGC breaks through the

inherent creative framework, allowing users to create

through various forms such as text, images, videos,

etc. (Romero-Rodriguez & Castillo-Abdul, 2023).

Based on their interests, experiences, and ideas,

showcasing personalized expression methods. It not

only breaks conventions but also has experimental

and exploratory elements, promoting the

diversification of information dissemination. In daily

life, users may reinterpret popular topics from unique

perspectives or creatively depict small details in their

lives. It is precisely because of the novelty of the

content that it attracts widespread attention and

interaction, forming trends and cultural phenomena.

But if one relies solely on copying, reposting, and

uploading content without incorporating their ideas

and creativity, it violates the strict concept of UGC.

So UGC is not only a channel for information

dissemination but also an incubator for creativity and

innovation.

2.2.3 Creation by Nonprofessionals or

Authoritative Organizations

One notable characteristic of user-generated content

(UGC) is that its creators are often nonprofessionals

or nonauthoritative organizations. The generation of

content does not rely on traditional professionals in

the publishing or media industry but rather comes

from ordinary users, enthusiasts, or small groups. Due

to the low threshold for creativity, anyone interested

can participate and share their personal experiences,

perspectives, and ideas. This decentralized creative

approach promotes the diversification of content and

provides more opportunities for people to express and

communicate. On the other hand, UGC is also

breaking the monopoly of authoritative discourse,

allowing different voices and unique perspectives to

be displayed on the platform, and highlighting the

advantages of cultural diversity. From this, it can be

seen that UGC emphasizes the exclusion of

organizational or commercial market involvement in

creation, and should be carried out without any profit

motive or return. The motivation for creation may

include: communicating with peers, establishing

visibility (positive or negative), or a desire for self-

expression (Fan et al., 2009).

In addition, the characteristics of user-generated

content are also reflected in openness, interactivity,

and diversity. First, UGC is highly open. Anyone with

Internet access can participate in content creation and

sharing. Whether it is text, pictures, video, or audio,

universal participation makes content creation no

longer limited to a few professionals. Secondly, UGC

has strong interactivity, allowing users to create

content and comment, like, and share others'

creations, thus forming a dynamic content ecosystem.

Thirdly, UGC content is rich and diverse in form,

covering various fields such as news, entertainment,

education, commentary, and social media.

Correspondingly, the creative methods also vary

according to personal interests, skills, and needs,

presenting a trend of personalization and creativity,

and rapidly spreading through social media and other

platforms, thereby forming a wide social influence.

Due to the diversity of content creators, UGC is also

prone to forming a "grassroots" culture, expressing

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the true thoughts and emotions of more ordinary

users, and profoundly influencing the way society

interacts.

2.3 Research Status of User-Generated

Content in Marketing Scenarios

In the context of marketing, research on user-

generated content (UGC) has received widespread

attention in recent years, with scholars mainly

studying brand communication, consumer behavior,

and market strategies. Some scholars believe that

user-generated content has perceptual and persuasive

effects, which can influence consumers' purchasing

decisions and increase their willingness to purchase.

Therefore, user-generated content has a positive

effect on marketing innovation, enhancing marketing

effectiveness, and helping consumers understand

product information (Wang & Chen, 2018).

Kartushkin analyzes big data based on user-generated

content, aiming to research and develop methods that

can predict consumer behavior (Gleb, 2024). Scholars

have also considered the impact of user-generated

content quality on retailer brand equity from the

perspective of user-generated content quality.

Empirical analysis methods have been used to find

that the higher the quality of user-generated content,

the more it can promote the development of retail

products and protect the brand equity of multi-

channel retailers (Wang & Zhang, 2015). With the

development of the digital era, user-generated content

is more and more displayed through Internet

marketing. Tsiakali proposed through empirical

analysis that user-generated content has a greater

impact on consumer decision-making and behavior

than marketing-generated content (Tsiakali, 2018).

For example, user-generated videos derived from

user-generated content have become the mainstream

marketing communication tool in the market. User-

generated videos, with their series of multimedia

features, continuously influence consumers' attitudes

and behaviors, enrich digital marketing forms, and

provide timely suggestions for enterprise marketing

strategies (Shi et al., 2023). Similarly, the positive

impact of the digital age and user-generated content

has also promoted the development of industries such

as agriculture and tourism and promoted rural

revitalization through content marketing (Huang &

Yang, 2025).

In summary, driven by social media, UGC has

played a positive role in shaping brand image,

increasing consumer engagement, and enhancing

brand loyalty. Scholars have explored the impact of

UGC on purchasing decisions and found that

consumers are more willing to generate consumption

behavior through genuine feedback from other users

rather than traditional advertising. With the

increasing interaction between UGC and brands,

research is gradually shifting towards how brands can

use UGC for content marketing, inspiring user

participation and stimulating the generation of more

UGC through creativity. Throughout the research in

this field, it has been found that there is still much

research space for UGC in balancing the relationship

between user-generated content and brand control, as

well as legal and ethical issues related to UGC.

This article intends to continue exploring more

beneficial modes of user-generated content based on

previous research, fully utilizing the various

characteristics and advantages of UGC, and further

proposing feasible countermeasures and suggestions

for existing marketing problems.

2.4 Benefit Model of User-Generated

Content

The key to benefiting from user-generated content is

its ability to greatly enhance brand credibility and

engagement. User-generated content is more

authentic and trustworthy, and consumers are more

willing to trust the experiences and evaluations of

other users to make their purchasing decisions

compared to traditional advertising. Moreover, the

interactive performance of UGC stimulates

consumers' sense of participation and enhances their

emotional connection with the brand. Brands seize

this advantage to encourage users to generate content,

and then obtain a large amount of creative content at

a lower cost, enhancing brand exposure and creating

more personalized marketing strategies. UGC can

also help brands build an active community, increase

user loyalty, and attract potential customers. It is the

clever use of UGC that enhances the brand's market

competitiveness while bringing higher marketing

benefits and long-term profits to the enterprise. The

benefit models of user-generated content can be

roughly summarized into the following categories

(Chen et al., 2009).

First, advertising benefits. The most direct way to

commercialize UGC is through advertising

monetization. With the prominent advantage of user-

generated content in attracting traffic, more and more

video platforms are starting to advertise through

UGC, forming a tripartite game of mutual promotion

among viewers, advertisements, and platforms,

aiming to maintain or increase profits through

advertising revenue (Chen et al., 2025). There are

various specific forms, such as brands can earn

Monetize Data Based on User-Generated Content Digital Marketing Strategy Research

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advertising revenue by collaborating with content

creators, embedding advertisements in their content,

or promoting their brand.

Second, data benefits. UGC can provide a large

amount of real and directly reflecting consumer needs

and behavior data, and the generated large amount of

data can provide profound user insights for

enterprises. Brands can analyze this data to gain a

deeper understanding of consumer preferences,

emotional attitudes, user experiences, and potential

pain points, to optimize products, services, and

marketing strategies. From this, it can be seen that

data not only helps brands discover improvement

directions for products and services but also reveals

key factors for consumers in the purchasing decision-

making process. Moreover, UGC can help brands

monitor market trends, identify popular discussion

topics and consumer concerns, and further guide

brand marketing strategies and product development.

Because UGC is usually generated by real users, it is

more representative and reliable than traditional

market research data and can help companies make

more accurate market positioning and personalized

marketing decisions, thereby enhancing brand

competitiveness and market response speed.

Third, user conversion benefits. Through UGC,

enterprises can attract more potential customers and

enhance user loyalty to the brand through social

interaction, ultimately achieving user conversion and

purchase. Consumers tend to trust genuine feedback

from other users rather than the brand's advertising,

and UGC provides reliable social proof to help dispel

purchase doubts. User-generated product reviews,

user experience, photos or videos, and other content

can provide potential customers with a more intuitive

understanding of the actual effectiveness and usage

scenarios of the product, enhancing their purchasing

decisions. This sense of trust and resonance helps to

improve conversion rates, especially on e-commerce

platforms and social media. UGC can directly drive

consumers from browsing to purchasing, enhancing

brand sales performance. So, UGC not only enhances

the credibility of the brand but also effectively

increases user conversion rates and sales revenue.

Last, content benefits. Enterprises create their

content libraries through UGC platforms and use

these contents for secondary creation to form

diversified products and services, thereby enhancing

brand value and market competitiveness. Compared

with traditional content creation models, UGC not

only reduces content creation costs but also allows

brands to obtain more original and personalized

content that meets the needs of different audience

groups. User content is generally more closely related

to actual usage scenarios and has a greater sense of

realism and emotional resonance, effectively

attracting the attention of other consumers and

stimulating their participation. By sharing user-

generated photos, videos, reviews, and other content,

brands can continuously update and enrich their

social media or official website content, thereby

increasing brand interactivity and activity. In

addition, UGC can provide brands with a large

amount of visual and textual materials, helping to

create more attractive and interactive advertising and

marketing activities. Therefore, brands can

continuously enhance the diversity and attractiveness

of content through UGC, thereby improving overall

marketing effectiveness and user engagement.

3 ANALYSIS OF THE PROBLEMS

OF USER-GENERATED

CONTENT IN DIGITAL

MARKETING

Although UGC has many advantages, it still faces

some problems in practical digital marketing

applications. This article mainly analyzes and

elaborates on three aspects: audience orientation,

content fit, and content homogenization.

3.1 Deviation in Audience Group

On the one hand, the dissemination of UGC content

usually relies on the platform's algorithm

recommendations, but these recommendation

systems may not always be able to accurately push

content to the most relevant users, resulting in biased

audience groups for the content, which may lead to

situations where brand promotion information cannot

effectively reach the target users. On the other hand,

as UGC mainly relies on the creation and sharing of

existing users, the representativeness of its content is

often limited by user groups, which may not fully

reflect the diverse needs of potential consumers. For

example, UGC may come more from core users who

already have a certain level of loyalty to the brand,

while ignoring the voices of new or potential

customers. This bias can lead brands to overly rely on

the perspectives of a certain group of users, making it

difficult to attract a wider audience or influence

consumers from different backgrounds. Additionally,

the quality of UGC content varies, resulting in some

groups' perceptions of the brand being affected.

Therefore, when using UGC for marketing, brands

need to fully consider the characteristics and needs of

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target users, avoid excessive reliance on platform

recommendation algorithms, and ensure that content

can be accurately pushed to potential consumer

groups. It is also necessary to balance the sources of

content appropriately to ensure coverage of a wide

audience, and to achieve more accurate market

coverage and effective brand communication.

3.2 Low Content Consistency

The essence of UGC is that content is generated

spontaneously by users and is usually not directly

controlled by the brand. So there is often a certain

deviation between the content quality, style, form,

and communication goals of UGC and the brand's

marketing strategy, and the degree of content

consistency directly affects the shaping of the brand

image. If the user-generated content does not match

the brand positioning, it may lead to distortion of the

brand image and even affect the brand's

reputation.UGC comes from users of different

backgrounds, ages, and interests, and the content they

create varies greatly in terms of expression and

emphasis. Some users may focus more on the

personal experience of the product, sharing daily

usage scenarios or emotional evaluations, which may

reflect the authenticity of the product but may

overlook the presentation of the brand's core values

or specific functions. The marketing goal of a brand

is usually to convey a unified brand image, product

selling points, or value proposition, so user-generated

content may not accurately convey the core

information expected by the brand. In addition, the

creation of UGC often lacks professional planning

and design, and the expression of content may not

conform to the brand's norms and visual standards.

Specifically, it can be observed that the quality of

photos or videos uploaded by users may vary, and

factors such as shooting angles, lighting, and colors

may not align with the aesthetic requirements of

brand marketing, leading to inconsistencies in brand

image and confusion in visual effects. In digital

marketing, brands need to ensure a high degree of

consistency between advertising and promotional

materials to establish a strong brand awareness in the

market. The low consistency of UGC content will

weaken this consistency to some extent, affecting

consumers' overall impression of the brand. The most

important thing is that the creation of UGC content is

often based on the subjective opinions and feelings of

individual users, lacking consideration for the overall

brand strategy or long-term goals. So sometimes the

content may deviate from the original marketing

purpose of the brand, resulting in a mismatch between

the content and market demand. In some cases, users

may overemphasize a specific feature or product

characteristic that is not the focus of brand marketing,

causing the audience's attention to deviate from the

core message that the brand wants to convey. The

resulting content deviation not only affects potential

customers' purchasing decisions but may also lead to

low marketing effectiveness. So, UGC can bring

higher interactivity and authenticity to brands in

digital marketing, but the issue of low content

consistency also needs to be addressed. When brands

utilize UGC, they need to carefully screen and

integrate it to ensure that the content of UGC aligns

with the brand's core message, visual standards, and

marketing goals, to achieve more effective marketing

communication effects.

3.3 The Phenomenon of Content

Homogenization

As is well known, the production of UGC has a low

threshold, and many users tend to create and share

similar content, resulting in a highly homogeneous

presentation of UGC content on the platform (Xu et

al., 2023). This is mainly manifested in the following

aspects. Firstly, the creation of UGC is often

influenced by platform rules, popular trends, or user

habits. Many users tend to rely on common

expressions or copy other users' creative templates

when creating content, resulting in similar themes,

styles, or expressions repeatedly appearing. For

example, many users may use similar language or

forms of expression when sharing their product

experience, such as comparing before and after

shooting the product or simply evaluating the

product, lacking personalization and being unable to

effectively attract the target audience. Secondly, the

content created by UGC usually revolves around a

popular topic or activity, which can easily lead to a

large amount of content being focused on the same

topic, resulting in a lack of information in the market.

The most obvious example is during promotional

activities or holiday marketing periods, where brands

often encourage users to post content related to the

event. At this time, users may tend to use the same

tags, images, or short video formats, and this

convergence phenomenon makes brand content lose

its recognition among numerous user-generated

posts. Thirdly, the creative process of UGC lacks

professional planning and guidance. Many users may

not create personalized content according to the

brand's needs, but directly share their intuitive

experiences with the product, resulting in a large

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779

amount of repetitive and lack of innovative content,

which makes it difficult for the brand to highlight its

unique selling points and value proposition through

these contents. In the fierce market competition,

brands need to stand out and attract the attention of

potential consumers through differentiated content.

But when the content created by most users presents

highly similar features, this "repetition" often leads to

a dull message transmission for the brand, which

cannot effectively stimulate audience interest and is

difficult to distinguish from competitors. To avoid the

problem of content homogenization that UGC is

prone to, brands need to carefully plan and screen the

content created by users and encourage users to

produce more unique and diversified content through

creative incentive mechanisms. For example, by

organizing creative competitions or providing

personalized creative tools, users can be guided to

generate more diverse and creative content. By

effectively managing UGC, brands can enhance the

diversity of content, break the dilemma of

homogenization, and achieve more effective digital

marketing communication.

4 DIGITAL MARKETING

STRATEGIES FOR

MONETIZING

USER-GENERATED CONTENT

DATA

In response to the above issues, this article believes

that to use user-generated content to achieve digital

monetization and do a good job in digital marketing,

brands need to make appropriate changes through the

following strategies:

4.1 Accurate User Profiling and

Personalized Recommendations

To more accurately target and cover the audience,

marketers need to use big data and artificial

intelligence technology to conduct precise portrait

analyses of users. By collecting and analyzing user

behavior, interests, purchase records, and other data,

it can gain a deeper understanding of users' interests,

behaviors, and preferences, and based on this,

develop personalized content recommendations to

build accurate user profiles. These profiles should

cover basic user attributes, as well as information

such as user interactions, content preferences, and

consumption trends on social platforms. Based on

accurate user profiles, brands can provide

personalized content recommendations for different

user groups, enabling them to obtain more relevant

product and service information when interacting

with the brand, thereby improving conversion rates

and user stickiness. Specifically, brands can analyze

the content uploaded by users, identify the product

features or interests they are interested in, and then

push highly relevant advertisements or promotional

activities. This not only enhances the user experience

but also effectively increases the data monetization

value of UGC, promoting the brand to achieve better

marketing results in a fiercely competitive market.

4.2 Incentive Mechanism and Content

Creation Support

UGC, as a type of content generated spontaneously

by consumers, has high credibility and dissemination

power and has a huge influence on brands. To fully

tap into the commercial value of UGC, brands need

to promote user content creation through precise

incentive mechanisms and effective creative support,

thereby achieving data conversion and monetization.

Firstly, incentive mechanisms are the core driving

force for users to actively participate in content

creation. Brands can motivate users to create high-

quality content in various ways, such as

implementing point rewards, cash rewards, brand

product giveaways, exclusive discounts, etc, to

effectively motivate users and make them feel direct

rewards when creating content. Brands can also

increase the interactivity and fun of content creation

through competitions, rankings, and other forms,

publicly display users' works and creative

achievements to enhance their sense of pride and

achievement, and further stimulate their creative

enthusiasm.

Secondly, content creation support ensures that

users can smoothly and efficiently produce content

that meets brand needs. Brands can provide users with

diverse creative tools and resource support, such as

templates, material libraries, video editing tools, etc.,

enabling users to create high-quality content with

simple operations. The convenient video editing

features provided by social media and short video

platforms enable users to quickly generate creative

content, while brand convenience can guide users to

create content that is compatible with the brand by

providing theme tags, marketing topics, or creative

guides. It can not only ensure the quality of UGC but

also improve the dissemination effect of content and

user engagement.

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Through effective incentive mechanisms and

content creation support, brands can promote the

scale and quality of user-generated content, thereby

achieving higher conversion rates in the process of

data monetization. After the content is generated and

carefully screened and promoted by the brand, it can

become an important asset for brand marketing, to

further strengthen interaction and trust with users and

enhance the brand's market influence. In addition,

these contents can also bring more exposure

opportunities through social sharing, word-of-mouth

communication, and other forms, ultimately

achieving an increase in brand value and revenue.

4.3 Content Innovation and

Differentiation

With the continuous development of digital platforms

and social media, consumer-generated content is

increasingly becoming an important bridge for

interaction between brands and consumers. However,

the large number of user-generated content (UGC) has

led to an increasingly prominent phenomenon of

content homogenization. Therefore, brands are

required to break through the encirclement and extract

commercial value from it through content innovation

and differentiation. Through unique creativity and

differentiated presentation methods, brands can attract

more users to participate and improve the quality and

dissemination effectiveness of content, thereby

bringing sustained market revenue to the brand (Hu et

al., 2024).

On the one hand, content innovation is the key to

ensuring that UGC can stand out. Brands need to

provide users with innovative creative tools and

inspiration to encourage them to incorporate unique

creative elements into the creative process. Launch

innovative activities or interactive challenges that

keep up with the times, attract users to participate and

create novel and creative content, constantly stimulate

users' creative inspiration, and avoid the singularity

and obsolescence of content. Users can also be

encouraged to create timely and interesting content

that combines the latest trends, hot events, or social

issues, thereby enhancing the emotional connection

between the brand and target users, and improving the

attractiveness and dissemination of the content.

On the other hand, differentiation is the key to

brands occupying market share in UGC data

monetization. Due to the wide variety of user-

generated content, brands need to use differentiation

strategies to make their content stand out and form a

unique market positioning. Brands can help users

differentiate their works from those of other creators

through customized creative directions, personalized

content styles, or exclusive creative labels. Some

brands can guide users to create content that conforms

to their unique culture or values, making their works

have significant differences in form or expression.

Differentiation can not only improve the originality

and recognition of content but also help brands

establish a distinct image in a fiercely competitive

market and further enhance brand loyalty and user

stickiness. By encouraging users to create content with

unique perspectives, creativity, and emotional

resonance, brands can extract materials with higher

market value from massive UGC and realize data

monetization through precise marketing strategies,

effectively enhancing the interaction and emotional

connection between brands and users, and promoting

brands to achieve long-term success in fierce market

competition.

5 CONCLUSION

In summary, user-generated content, as an innovative

digital marketing approach, can bring huge business

opportunities to brands. However, there are still some

challenges in practical application, including

audience bias, low content consistency, and

widespread homogenization of content. To achieve

data monetization and enhance marketing

effectiveness, brands should adopt strategies such as

precise user profiling, incentive mechanisms, content

innovation, and differentiation to better leverage the

advantages of UGC. In the future, with the

advancement of technology and the continuous

changes in user needs, the application of UGC will

become more extensive and in-depth. Brands should

constantly innovate their thinking and explore new

UGC marketing models to create more attractive and

differentiated content, to achieve higher commercial

value.

AUTHORS CONTRIBUTION

All the authors contributed equally and their names

were listed in alphabetical order.

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