Firms 'should not underestimate UGC'

Companies must be wary of underestimating the power of user-generated content (UGC), an expert has warned.

Matthew Finch, an online marketer who in the past has worked for DoubleClick, made his comments through his E-consultancy blog, claiming that consumers seek confirmation of their decisions from their online peers.

Although UGC can be positive and create overnight successes through its viral capabilities, negative cover can have "disastrous" consequences, he warned.

"The traditional media are still a big influencer on customer thought but the guy sat at home expressing his personal opinion now has a global audience of readers, all willing to take note," Mr Finch concluded.

Last year, Lee Odden, chief executive officer of online marketing firm TopRank, suggested via the Online Marketing Blog that consumers increasingly prefer to read UGC when considering a product or service.

One possible reason for this is that people find it easier to trust other users in preference to more "polished" marketing communications, he claimed.