Why LatAm Creators Could Be Your Cheapest Untapped UGC Testing Ground
The speaker discusses a growing trend of companies using Latin American creators for UGC testing due to lower costs and less saturated markets. By paying $15 per video instead of $25 in the US, brands can test new formats cost-effectively before scaling successful strategies to other markets.
Summary
The speaker identifies a significant shift in creator strategy, noting that since summer, there has been movement away from exclusive focus on US-based or top-tier creators toward international markets. This shift is driven by several factors: the US market is highly competitive in certain niches, while other regions have not yet adopted advanced content strategies and formats that are standard in the US. Many international markets, particularly Latin America, have creators who are less experienced with high-volume UGC production, making them less saturated and more cost-effective. The financial advantage is substantial—companies can obtain creators of similar quality in Latin America for $15 per video compared to $25 in the US. This cost difference enables companies to use Latin American markets as testing grounds for new video formats and strategies. By experimenting with lower-cost creators in these regions, companies can identify winning formats and then apply those learnings to their other markets. The speaker emphasizes that product availability in these international markets is a prerequisite for success, and strongly encourages companies to expand their product availability internationally to increase the pool of available creators. Latin America, particularly the Spanish-speaking creator community, is highlighted as one of the most successful markets for this approach currently.
Key Insights
- The speaker observes that content strategy formats and high-volume UGC production methods have not yet reached other parts of the world at the same level as the US market.
- Latin American and other international creator marketplaces offer significantly lower onboarding costs, with creators of similar quality available at $15 per video versus $25 in the US.
- Companies are using international markets as cost-effective testing grounds to identify winning video formats before scaling those learnings to other markets.
- Many international markets are only beginning to improve in terms of access and availability of creators compared to the mature US market.
- Product availability in international markets is a limiting factor, but expanding availability internationally increases the total number of creators available for collaboration.
Topics
Transcript
[0:00] One thing I've started to see in the last few months, honestly since this summer, is the shift from focusing only on US-based creators or even top-tier creators, towards something much more international. I think part of the good thing about this is that, okay, the US market can be extremely competitive in certain niches, but for some of those areas, like content strategy and those formats, they haven't yet reached other parts of the world. And I [0:32] also think that many of these other areas of the world, at least from the creators' perspective, are a little behind in really understanding what high-volume UGC and UGC on canvas are. These markets are only just beginning to improve…
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