eMarketer released some big numbers last week on the growth of user-generated content creators and consumers.  The report estimates that by 2013 the number of UGC creators will reach 115 million (just over half of all internet users), up from 83 million in 2008.  That’s significant, and indicative of the growing popularity of user-generated content (specifically video) as a platform for fluent self-expression.  And as the quantity of content increases, so too does the audience.  An estimated 70% of all internet users, roughly 155 million, will be consuming some form of UGC by 2013.

The study goes on to suggest that the growth in UGC may be unprofitable if the advertising climate for user-generated media remains stagnant, citing ‘unpredictability of UGC’ and ‘absence of ad standards’ (among others) as the culprits for these conditions.  While these issues pose a concern for a company like Google who are still seeking to profit on YouTube after its acquisition in 2006, marketers are presented with an amazing opportunity to reach their audience in an organic and credible way.

Marketing Vox covered an Ad-ology survey last week on the influence of video game selection.  The survey, called Fall 2008 Median Influence on Consumer Choice, reported that of consumers between the ages of 18-24 nearly 65% were influenced by online video.

“‘Gamers want to see new releases in action before they buy, and online video is an effective way to show actual game play,’ said C. Lee Smith, president and CEO of Ad-ology Research.”

This significant level of influence of online video on video game purchases presents an opportunity for leveraging the growing number of UGC creators and consumers.  At Affinitive, we integrate online video, official or user-generated, into the majority of our programs when it makes sense, and have experienced a great deal of success in most cases.

For example, we recently executed a user-generated video contest for the release of an RPG-style video game.  The contest was set up to encourage those who bought the game to upload their best game play videos (see an example here), with the winner earning a gift certificate and autographed merchandise.  By the end of the contest (roughly two weeks after the game’s release,) the contest had received over 50 entries totaling 300,000+ views.

That’s not to say that every marketing campaign needs online video, rather I’m simply pointing out that the audience and creators are increasing, and the influence is there.  It is a growing opportunity that should be considered when developing an online marketing strategy.

The game hit stores this week, and to celebrate the illustrious history of The Lord of The Rings franchise and to increase awareness for the new installment in the video game series, Affinitive coordinated a user-generated video contest to find the “Ultimate The Lord of The Rings Fan.”

Five finalists from a pool of impressive entries were chosen by the program’s managers, and were then voted on by the community. The winning video was submitted by “Thorgaz”, who showed us exactly what it means to be the ultimate fan (hint: creating your own set of Nazgul gloves and perfecting an unbelievable Gollum impression.) We appreciate his time and effort into making this video, and showing off his passion for the series!

Check it out:

Keller Fay Group released research showing that 90% of WOM conversations occur offline and only 7% occur online. For marketers targeting the online space, this was a hard finding to swallow as it suggested that opportunities were being missed in a space where WOM is difficult to measure.

Our solutions at Affinitive focus mostly online, so at first glance it seems perhaps we were focusing on the wrong space. In our programs, we ask participants to self-report the number of times they are involved in conversations related to the product or brand of interest and whether those conversations occurred online or offline. I gathered results from 8 of our past programs in the video game industry. The results showed that only 37% of WOM happened offline for participants of the program, a marked difference from the 90% presented earlier:

So, what is happening here? I think there are three Ps in play:

• Person (Who is being targeted?)
• Place (How are they being targeted?)
• Product (What is being talked about?).

Depending on how and where a program is executed has effects on where the WOM happens. We found an online-rich personality is often a major psychographic trait of video game consumers. Noting this, we were able to to augment their natural social engagements with product-related WOM encompassing specialized strategies designed to keep participants online.

If you want to target people who feel more comfortable in the online space, then use that to your advantage. Offer tools and ideas to spread the word online. Integrate your program into the environment with which your consumers are most comfortable. Tactics developed for a program must complement both audience and product.