user generated content
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When people are uncertain, they look to others for behavioral guidance. This is called social proof, which is a physiological effect that influences your decisions every day, whether you know it or not.
At Demand Curve and through our agency Bell Curve, we’ve helped over 1,000 startups improve their ability to convert cold traffic into repeat customers. We’ve found that effectively using social proof can lead to up to 400% improvement in conversion.
This post shares exactly how to collect and use social proof to help grow your SaaS, e-commerce, or B2B startup.
Surprisingly, we’ve actually seen negative reviews help improve conversion rates. Why? Because they help set customer expectations.
Have you ever stopped to check out a restaurant because it had a large line of people out front? That wasn’t by chance.
It’s common for restaurants to limit the size of their reception area. This forces people to wait outside, and the line signals to people walking past that the restaurant is so good it’s worth waiting for.
But for Internet-based businesses, social proof looks a bit different. Instead of people lining up outside your storefront, you’re going to need to create social proof that resonates with your target customers — they’ll be looking for different clues to signal whether doing business with your company is “normal” or “acceptable” behavior.
People love to compare themselves to others, and this is especially true when it comes to the customers of B2B businesses. If your competitor is able to get a contract with a company that you’ve been nurturing for months, you’d be upset (and want to know how they did it).
Therefore, B2B social proof is most effective when you display the logos of companies you do business with. This signals to people checking out your website that other businesses trust you to deliver on your offer. The more noteworthy or respected the logos on your site, the stronger the influence will be.
Depending on the type of SaaS product or service you’re selling, you’ll either be selling to an individual or to a business. The strategy remains the same, but the channels will vary slightly.
The most effective way to generate social proof for SaaS products is through positive reviews from trusted sources. For consumer SaaS, that will be through influential bloggers and YouTubers speaking highly of your product. For B2B SaaS, it will be through positive ratings on review sites like G2 or Capterra. Proudly display these testimonials on your site.
E-commerce brands will typically sell directly to an individual through ads, but because anyone can purchase an ad, you’re going to need to signal trust in other ways. The most common way we see e-commerce brands building social proof is by nurturing an organic social media following on Instagram or TikTok.
This signals to new customers that you’ve gotten the seal of approval from others like them. Having an audience also allows you to showcase user-generated content from your existing customers.
There are five avenues startups can tap to collect social proof:
Here are a few tactics we’ve used to help startups build social proof.
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Barcelona-based gaming video platform Gamestry has snatched up $5 million in seed funding, led by Goodwater Capital, Target Global and Kibo Ventures — turning investors’ heads with a 175x growth rate over the past 12 months.
While the (for now) Spanish-language gaming video platform launched a few years back, in 2018, last year the founders decided to shift away from an initial focus on curating purely learning content around gaming — allowing creators to upload and share entertainment-focused games videos, too.
The switch looks to have paid off as a growth tactic. Gamestry says it now has 4M monthly active users (MAUs) and 2,000 active creators in Spain and Latin America (its main markets so far) — and is gunning to hit 20M MAUs by the end of the year.
While Twitch continues to dominate the market for live-streaming games — catering to the esports boom — Gamestry, which says it’s focused on “non-live video content”, reckons there’s a gap for a dedicated on-demand video platform that better supports games-focused video creators and provides games fans with a more streamlined discovery experience than catch-all user-generated content giants like YouTube.
For games video creators, it’s dangling the carrot of a better revenue share than other UGC video platforms — talking about having “a fair ads revenue share model”, and a plan to add more revenue streams for creators “soon”. It also pledges “full transparency on how the monetization structure works”, and a focus on supporting creators if they have technical issues.
So, basically, the sorts of issues creators have often complained that YouTube fails them on.
For viewers, the pitch is a one-stop-shop for finding and watching videos about games and connecting with others with the same passion (gaming chat) — so the platform structures content around individual games titles.
The startup also claims to present viewers with better info about a video to help them decide whether or not to click on it (aka, tools to help them find “quality instead of clickbait”), beyond basics like title, thumbnail and videos. (Albeit to my admittedly unseasoned eye for assessing the calibre of games video content, there is no shortage of clickbaity-looking stuff on Gamestry. But I am definitely not the target audience here…). So the viewer pitch also sounds like another little dig at YouTube.
“Despite being the de-facto place for uploading content, YouTube is a generic platform that is not optimized for gaming and therefore doesn’t cater to the needs of gaming creators,” argue founders — brothers Alejo and Guillermo Torrens — adding: “Vertical or specialized platforms emerge whenever markets become large enough that current platforms can’t serve their users’ needs and we believe that’s exactly what’s happening today.”
Target Global’s Lina Chong led the international fund’s investment in Gamestry. Asked what piqued her interest here, she flagged the recent growth spurt and the platform having onboarded scores of highly engaged games content creators in short order.
“The problem Gamestry is addressing is that the vast majority of creators don’t make much money on those platforms because they are ads/eyeball driven businesses,” she told TechCrunch. “Gamestry provides a space where creators, despite audience size, can find new ways to engage with their audience and make a living. This problem among creators is so big that Gamestry now has over 2k highly engaged creators uploading multiple content pieces and millions of their viewers on the platform every month.”
It will surely surprise no one to learn that the typical Gamestry user is a male, aged between 18 and 24.
The startup also told us the “most trending” games on its platform are Minecraft, Free Fire, and Fortnite, adding that “IRL (In Real Life) content is also very successful”.
As well as YouTube Gaming, other platforms competing for similar games-mad eyeballs include Facebook Gaming and Booyah.
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Catch&Release founder and CEO Analisa Goodin told me that she wants to help brands break free from the limitations of stock photography — and that her startup has raised $14 million in Series A funding to achieve that goal.
Goodin explained that the company started out as an image research firm before becoming a product-focused, venture-backed startup in 2015. The Series A was led by Accel (with participation from Cervin Ventures and other existing investors), and it brings Catch&Release’s total funding to $26 million.
Stock media and video services are moving in this direction themselves, for example by introducing their own libraries of user-generated content. Goodin applauded this, and she said Catch&Release isn’t opposed to the use of stock photos — it integrates with these stock marketplaces. At the same time, she suggested that she has a much bigger vision.
“This isn’t just about UGC, this is about tapping into the creative potential of the internet,” she said.
After all, you can now find pretty much any kind of content you can imagine somewhere online, but “a lot of advertising agencies and brands have been trained that if a piece of content comes from the internet, avoid it,” because it’s just “too hard” to figure out how to license it. (And indeed, that’s why I went with a stock photo for the lead image of this post.)
Image Credits: Catch&Release
Catch&Release aims to make that process as simple as possible, first with a browser extension that allows marketers to save any media that they find on the web, anytime they think they might want to use it in their own campaigns (this is the “catch” part of the process). It even presents a “licensability score,” which is a rating based on factors like the person who posted the content, the description and the comments, indicating how likely it is that a marketer will actually be able to license this content.
Then, when someone from a brand or advertising agency decides that they want to use a piece of content, they can send a licensing request with a push of a button (this is the “release”). Catch&Releases also analyzes the content for anything else that needs to be cleared or obscured, such as a company logo.
While we’ve written about other tools for licensing online content, Goodin emphasized that Catch&Release isn’t just about finding photos for a social media campaign. Part of the goal, she said, is to erase the “stigma” around UGC, which now “represents the entire spectrum of culturally relevant content.”
For example, she showed me a Red Lobster commercial that looks like a normal TV ad, but was in fact assembled entirely from footage found online — something that’s been even more useful in the past year, with pandemic-related safety concerns around large shoots. (Catch&Release has also been used to license content for ads promoting TechCrunch’s parent company Verizon.)
Goodin added that the new funding will allow Catch&Release to continue investing in product, engineering and marketing.
“No one has defined the commercial licensing layer for the web,” she said. “What’s got me really excited to build this product is being that layer for the internet, not just for photos and videos, but for writing, art, graphics and building the commercial licensing engine of the web.”
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Deloitte’s Technology, Media and Telecommunications division published its 13th-annual Digital Media Trends survey, focused on identifying changes in the ways US consumers engage with various types of media.
Led by an independent research firm, the survey had roughly 2,000 consumer respondents across demographics – with the report categorizing respondents based on age (Gen-Z: ages 14-21, Millenials: 22-35, Gen-X: 36-52, Boomers: 53-71, and Matures: 72+).
While already accompanied by a succinct 13-page executive summary, the report can largely be summarized in just a couple of sentences: more people are using streaming or alternative media services than ever before, largely due to more user freedom and customization, though the growing quantity and fragmentation of platforms are becoming more frustrating for users to manage.
The survey results directionally echo already well-discussed dynamics, which we’ve previously dug into such as here, here and here. Instead, the most poignant aspects of the report were not the answers or conclusions themselves, but the immense level of support many of them received.
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WndrCo, the consumer tech investment and holding company founded by longtime Hollywood executive Jeffrey Katzenberg, has invested $30 million in The Infatuation, a restaurant discovery platform.
The Infatuation made waves earlier this year when it purchased Zagat from Google, which had paid $151 million for the 40-year-old company in 2011. Despite efforts to makeover the Zagat app, the search giant ultimately decided to unload the perennial restaurant review and recommendation service and focus on expanding its database of restaurant recommendations organically.
New York-based The Infatuation was founded by music industry vets Chris Stang and Andrew Steinthal in 2009. It has previously raised $3.5 million for its mobile app, events, newsletter and personalized SMS-based recommendation tool.
Stang told TechCrunch this morning that they plan to use a good chunk of the funds to develop the new Zagat platform, which will be kept separate from The Infatuation.
“The first thing we want to do before we build anything is spend a lot of time researching how people have used Zagat in the past, how they want to use it in the future, what a community-driven platform could look like and how to apply community reviews and ratings to the brand,” said Stang, The Infatuation’s chief executive officer. “Zagat’s roots are in user-generated content. … What we are doing now is thinking through what that looks like with new tech applied to it. What it looks like in the digital age. How [we can] take our domain expertise and that legendary brand and make something new with it.”
The Infatuation will also expand to new cities beginning this fall with launches in Boston and Philadelphia. It’s already active in a dozen or so U.S. cities including Los Angeles, Seattle and San Francisco. The startup’s first and only international location is London.
Katzenberg, who began his Hollywood career at Paramount Pictures, began raising up to $2 billion for WndrCo about a year ago. Since then, he’s unveiled WndrCo’s new mobile video startup NewTV, which has raised $1 billion and hired Meg Whitman, the former president and CEO of Hewlett Packard, as CEO.
On top of that, WndrCo has invested in Mixcloud, Axios, Node, Flowspace, Whistle Sports, TYT Network and others.
Given The Infatuation founders’ experience in the entertainment industry, a partnership with Katzenberg was natural.
“We really felt like between content and technology they had … expertise on both sides,” Stang said. “The Infatuation is at its best when great content intersects with great technology, to find a fund that was perfectly suited to that was exciting.”
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The removal of conspiracy enthusiast content by InfoWars brings us to an interesting and important point in the history of online discourse. The current form of Internet content distribution has made it a broadcast medium akin to television or radio. Apps distribute our cat pics, our workouts, and our YouTube rants to specific audiences of followers, audiences that were nearly impossible to monetize in the early days of the Internet but, thanks to gullible marketing managers, can be sold as influencer media.
The source of all of this came from Gen X’s deep love of authenticity. They formed a new vein of content that, after breeding DIY music and zines, begat blogging, and, ultimately, created an endless expanse of user generated content (UGC). In the “old days” of the Internet this Cluetrain-manifesto-waving post gatekeeper attitude served the slacker well. But this move from a few institutional voices into a scattered legion of micro-fandoms led us to where we are today: in a shithole of absolute confusion and disruption.
As I wrote a year ago, user generated content supplanted and all but destroyed “real news.” While much of what is published now is true in a journalistic sense, the ability for falsehood and conspiracy to masquerade as truth is the real problem and it is what caused a vacuum as old media slowed down and new media sped up. In this emptiness a number of parasitic organisms sprung up including sites like Gizmodo and TechCrunch, micro-celebrity systems like Instagram and Vine, and sites catering to a different consumer, sites like InfoWars and Stormfront. It should be noted that InfoWars has been spouting its deepstate meanderings since 1999 and Alex Jones himself was a gravelly-voice radio star as early as 1996. The Internet allowed any number of niche content services to juke around the gatekeepers of propriety and give folks like Jones and, arguably, TechCrunch founder Mike Arrington, Gawker founder Nick Denton, and countless members of the “Internet-famous club,” deep influence over the last decades media landscape.
The last twenty years have been good for UGC. You could get rich making it, get informed reading it, and its traditions and habits began redefining how news-gathering operated. There is no longer just a wall between advertising and editorial. There is also a wall between editorial and the myriad bloggers who write about poop on Mt. Everest. In this sort of world we readers find ourselves at a distinct loss. What is true? What is entertainment? When the Internet is made flesh in the form of Pizzagate shootings and Unite the Right Marches, who is to blame?
The simple answer? We are to blame. We are to blame because we scrolled endlessly past bad news to get to the news that was applicable to us. We trained robots to spoon feed us our opinions and then force feed us associated content. We allowed ourselves to enter into a pact with a devil so invisible and pernicious that it easily convinced the most confused among us to mobilize against Quixotic causes and immobilized the smartest among us who were lulled into a Soma-like sleep of liking, sharing, and smileys. And now a new reckoning is coming. We have come full circle.
Once upon a time old gatekeepers were careful to let only carefully controlled views and opinions out over the airwaves. The medium was so immediate that in the 1940s broadcasters forbade the transmission of recordings and instead forced broadcasters to offer only live events. This was wonderful if you had the time to mic a children’s choir at Christmas but this rigidity was bed for a reporter’s health. Take William Shirer and Edward R. Murrow’s complaints about being unable to record and play back bombing raids in Nazi-held territories – their chafing at old ideas are almost palpable to modern bloggers.
There were other handicaps to the ban on recording that hampered us in taking full advantage of this new medium in journalism. On any given day there might be several developments, each of which could have been recorded as it happened and then put together and edited for the evening broadcast. In Berlin, for example, there might be a bellicose proclamation, troop movements through the capital, sensational headlines in the newspapers, a protest by an angry ambassador, a fiery speech by Hitler, Goring or Goebbels threatening Nazi Germany’s next victim—all in the course of the day. We could have recorded them at the moment they happened and put them together for a report in depth at the end of the day. Newspapers could not do this. Only radio could. But [CBS President] Paley forbade it.
Murrow and I tried to point out to him that the ban on recording was not only hampering our efforts to cover the crisis in Europe but would make it impossible to really cover the war, if war came. In order to broadcast live, we had to have a telephone line leading from our mike to a shortwave transmitter. You could not follow an advancing or retreating army dragging a telephone line along with you. You could not get your mike close enough to a battle to cover the sounds of combat. With a compact little recorder you could get into the thick of it and capture the awesome sounds of war.
And so now instead of CBS and the Censorship Bureau we have Facebook and Twitter. Instead of calling for the ability to record and playback an event we want permission to offer our own slants on events, no matter how far removed we are from the action. Instead of working diligently to spread only the truth, we consume the truth as others know it. And that’s what we are now chafing against: the commercialization and professionalization of user generated content.
Every medium goes through this confusion. From Penny Dreadfuls to Pall Mall sponsoring nearly every single new television show in the 1940s, media has grown, entered a disruptive phase that changes all media around it, and is then curtailed into boredom and commoditization. It is important to remember that we are in the era of Peak TV not because we all have more time to watch 20 hours of Breaking Bad. We are in Peak TV because we have gotten so good at making good shows – and the average consumer is ravenous for new content – that there is no financial reason not to take a flyer on a miniseries. In short, it’s gotten boring to make good TV.
And so we are now entering the latest stage of Internet content, the blowback. This blowback is not coming from governments. Trump, for his part, sees something wrong but cannot or will not verbalize it past the idea of “Fake News”. There is absolutely a Fake News problem but it is not what he thinks it is. Instead, the Fake News problem is rooted in the idea that all content deserves equal respect. My Medium post is as good as a CNN which is as good as an InfoWars screed about pedophiles on Mars. In a world defined by free speech then all speech is protected. Until, of course, it affects the bottom line of the company hosting it.
So Facebook and Twitter are walking a thin line. They want to remain true to the ancillary GenX credo that can be best described as “garbage in, garbage out” but many of its readers have taken that deeply open invitation to share their lives far too openly. These platforms have come to define personalities. They have come to define news cycles. They have driven men and women into hiding and they have given the trolls weapons they never had before, including the ability to destroy media organizations at will. They don’t want to censor but now that they have shareholders then they simply must.
So get ready for the next wave of media. And the next. And the next. As it gets more and more boring to visit Facebook I foresee a few other rising and falling media outlets based on new media – perhaps through VR or video – that will knock social media out of the way. And wait for more wholesale destruction of UGC creators new and old as monetization becomes more important than “truth.”
I am not here to weep for InfoWars. I think it’s garbage. I’m here to tell you that InfoWars is the latest in a long line of disrupted modes of distribution that began with the printing press and will end god knows where. There are no chilling effects here, just changes. And we’d best get used to them.
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A startup called Gfycat (which is pronounced “Jiffy Cat”) has raised a mammoth $10 million seed round to turn its already popular user-generated content platform into a revenue generating concern. On the content creation side of its business, the startup reports that 2.5 million unique users have already created 25 million “Gfycats,” or short, silent, looping animations… Read More
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“Brace yourself, Marco…we’ve just been removed from the App Store.” With those words, I visualized everything we’d slaved over for months crumple itself into a ball of trash and — ironically — flinging itself into the bin beside me. But it hardly came as a surprise. Despite stellar traction at over 4 million users and 15 million flings opened per day… Read More
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