Executives fear user-generated content
Posted by DavidM in Online Business | 31 May 2007
As I trawled through the stack of magazines piling up on my bedside table this weekend I came across an article in NMA about a poll of 110 senior media and entertainment executives.
Over half consider user-generated content to be "one of the biggest threats to the industry" though two-thirds also expect to make money from it.
This isn't too surprising as large businesses have a love/hate relationship with user-generated content.
On the one hand, it gives fantastic scope to get closer to their customers and engage in relationships outside the classic sales/marketing approach. It can give them deep insights into what their actual and potential customers think and gives access to true brand advocates. UGC can also make a business site stickier if it can get the content right and can build trust in products - such as through published peer reviews.
However the downside is that UGC isn't corporate controlled and leaves a company open to negative comment, hijacking and competitor sabotage and hugely embarrassing PR disasters.
There are a growing number of businesses including at least limited UGC on their customer websites and the approach seems to be more prudent and respectful than earlier when companies such as L'Oreal got it very wrong (before putting it right).
The survey suggests there is still some lack of understanding at the top of corporations despite the fact they probably all have online teams who know this stuff. Maybe they should spend more time with the experts they have in their own companies to get to grips with the one of the most important and dynamic shifts in their industry.