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UGC, CGC, IGC or What You See?
It All Started as Gossip and Turned into a Trend.
In Latin America, we always say gossip isn’t really our thing... but come on! We can’t help but smile when someone starts with the classic, “Did you hear?” or when a friend leans in quietly to say: “I’ve got chismecito.”
The same thing happens in the digital world. One day, you find yourself debating, laughing, and sharing memes about someone who appeared in a viral video... someone you probably barely know.
And that’s how this whole mess began: a video posted by content creator @_suplinna set off a snowball of comments about “doing UGC in Latin America.”
What is UGC?
UGC stands for User Generated Content: content created by regular, everyday users—not paid or pressured by brands—born from a genuine experience.
Think of it this way: when a customer uploads a photo or writes a comment without any payment involved, that’s authentic UGC.
According to Wikipedia, this type of content has allowed consumers to move from being passive participants to becoming active contributors on digital platforms.
And here’s a key stat: 79% of millennials and 70% of Gen Z make purchasing decisions basedon UGC.
Furthermore, “user-generated content influences the purchases of 79% of consumers, and 92% trust peer recommendations more than branded content.”
This proves that without a clear understanding of UGC, we risk losing the authentic touch that truly drives people to act.
What’s the State of UGC in Latam?
While in the U.S. and Europe many brands already include it as a key part of their business strategy, in Latin America the idea still lingers that a proper UGC execution is simply “I’ll send you one of my products so you can post something,” overlooking one of the most important promotional vehicles for generating awareness on digital channels.
Whether due to a lack of knowledge from the brands themselves or a lack of guidance from their agencies, the creative process for developing a UGC campaign often lacks clear KPIs, variety in entry hooks, proper editing by the agency, optimization of formats for media placement, or even the basic understanding that a UGC creator should know if their content will be boosted or not, and for how long.
As @mila_posada points out in this video:
In Latin America, only 37.7% trust sponsored posts, a figure that aligns closely with Europe andthe U.S., where the average is around 35%–39%, according to this data from Single Rain.
In contrast, well-executed UGC —the kind that feels like it came from an everyday person— has far greater power to connect than an influencer with all the production resources at their disposal.
On the other hand, according to a global report, the UGC marketing market is expected to grow from USD 6.7 billionin 2024 to USD 132.7 billion in 2034, with a CAGR of 34.8%.
This is a clear sign that our region is still not in sync with what’s coming.
The Confusion: Everything’s Called UGC
Here’s the big problem: many people call anything “UGC” if it’s a video with good editing, nice lighting, and camera flair, when in reality it’s paid branded content or disguised influencer work. It’s not that these productions are bad or less effective, but they lead to some serious misunderstandings:
- Brands don’t know if they’re paying for authenticity or for production.
- Creators don’t know how to position themselves: does authenticity have less value than a well-scripted, well-edited video?
- The audience grows distrustful: if everything looks paid, who’s really saying, “this is dope”?
This video of @yuyo.says can actually help us understand the communication differences between one and the other.
Clear Differences to Avoid Confusion
These acronyms are everywhere, but it’s important to keep them straight:
- UGC (User Generated Content): spontaneous, authentic content created by regular users.
- IGC (Influencer Generated Content): content from people with an audience, who usually charge for it —this production is no longer anonymous.
- CGC (Creator Generated Content or Company Generated Content): content created either by the brand or by hired creators, with an editorial focus and controlled quality.
According to Territory Influence: "UGC thrives on authenticity and community, while IGCl everages the influence and creativity of people with an established online presence."
So, how should these differences be addressed in a campaign led by a marketing agency? This video by @theinexpert explains it:
Where Should We Go Next?
These acronyms are everywhere, but it’s important to keep them straight:
- Market Education: Brands and agencies must know how to distinguish between UGC, IGC, and CGC, and use each one in its proper role.
- Creator Professionalization: Creators should know how to quote, deliver, and sell their proposals without disguising themselves as UGC when they are actually IGC or CGC.
- Building an Authentic Culture: Users should feel good about sharing, without thinking that everything is a hidden transaction.
At Positive, we not only understand the differences between UGC, IGC, and CGC, but we also apply them in a structured way within every campaign. This allows us to design strategies where each type of content fulfills its exact function, boosting authenticity and maximizing results. This way, we help international brands land organically in the Latin market, connecting with audiences through the language, codes, and culture that truly move them.
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