User Generated Content 3X more influential.

A recent study conducted by Chicago-based Leo J. Shapiro & Associates LLC (LJS) reveals that U.S. consumers find sources of user-generated content (UGC) – discussion forums, blogs, online review sites and social networking sites – three times more influential when making a purchase decision than conventional marketing methods such as TV advertising. The findings, from a national sample of 450 households, also reveal that one-third (34 percent) of Internet users cite UGC as extremely or very influential when making a purchase decision, while one in ten (11 percent) find TV advertising as effective.

In the past year, nearly half of Americans (48 percent) have consulted UGC during their buying process, and more than one-third (37 percent) have consulted it in the past three months. Consumers point to several factors that are driving their use of UGC. They find the evaluations unbiased and also feel a level of camaraderie, because the posts are coming from consumers like themselves. UGC has become ubiquitous, as well, making it easy to access at the point of purchase.

“Although, ads are still important for awareness and consideration, the advertiser’s influence on the final purchase decision is being heavily impacted by the positive and negative views found in UGC. With the rise of UGC, advertisers will need to explore new ways to close the sale,” says Owen Shapiro, vice president, LJS.

Through a variety of technical advances, UGC is rapidly becoming more measurable and thus more manageable, allowing advertisers near real-time monitoring and analysis of UGC. The insights gained from this analysis will enable companies to help guide consumers on the brink of their purchase decisions – a capability that was not imaginable just a few years ago.

For more information at http://www.ljs.com