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Web 2.0 sites more attractive to marketers?
Does a UGC strategy ad up?

By Jo Best

Published: Wednesday 25 April 2007

While the user-generated content (UGC) bandwagon rolls on, one study has now found canny marketers can get the best return from positioning ads on UGC sites rather than their traditional, editorially driven cousins.

The survey, from ad network BlueLithium, said marketers looking for cheaper ways to get users clicking on online ads should turn to UGC sites where cost to conversion - getting an individual registering for a programme, buying a product and so on - rates are lower.

Cheat Sheets

♦ Web 2.0
♦ Mash-ups

After tracking hundreds of ads across both UGC and editorially driven sites, the study found the non-UGC sites had a greater overall conversion rate: 32 per cent higher than for user-generated websites.

However, for the cost conscious, the survey reports advertising costs are much lower for UGC sites - making the whole conversion process that much cheaper per user.

A separate study recently found that despite a boom in 'homemade' content - the number of UGC sites has exploded by a massive 668 per cent in two years - only a very small per cent of web users contribute their own material. In one example, audience measurement company Hitwise found just 0.16 per cent of visits to YouTube involve users seeking to upload video for others to watch.