What Is Crowdsourcing In Marketing? Definition and Examples

Crowdsourcing marketing is a promotional strategy that involves collecting information from the general public to guide a company’s product development and advertising efforts. It allows customers to contribute their ideas about how a business should operate or what features the company incorporates into its products.

Crowdsourcing for an Effective Digital Marketing | POWERFUL MARKETING STRATEGY

How does crowdsourcing work in marketing?

Crowdsourcing functions as a marketing tool by giving the general public the chance to interact with a business, which may then inspire them to find out more about what the company does and ultimately make a purchase. Businesses use crowdsourcing as part of their marketing strategy to develop fresh concepts for their industry and to tailor marketing materials to their target audience. Additionally, they employ crowdsourcing as a form of public relations, encouraging people to tell their personal networks about the chance to contribute to a company’s goods and services.

What is crowdsourcing marketing?

A marketing tactic known as “crowdsourcing” involves gathering data from the general public to direct a company’s product development and advertising efforts. It enables clients to offer suggestions on how a company should run or what features it should include in its goods. Contests where participants can vote on new product releases, suggest product names, or demonstrate how they use a company’s products in their daily lives are examples of crowdsourcing marketing strategies.

Companies that incorporate crowdsourcing into their marketing strategy hope to get feedback from a wide range of potential customers in order to inform market research, forge genuine connections with a target audience, and increase user acceptance of new products.

Types of crowdsourcing marketing

There are a few main types of crowdsourcing that advertisers use in their advertising campaigns. Here are a few typical examples of crowdsourcing in marketing and how they function:

Product suggestions

One well-liked technique for crowdsourcing marketing is to ask customers directly for their opinions on products. Having a form where people can submit ideas and vote on the submissions they like is one way to crowdsource product suggestions. By setting up competitive brackets or using multiple voting rounds, businesses can pique participants’ interest in the voting process and encourage them to promote their preferred submissions. Some companies provide incentives, such as free products, merchandise, or even job opportunities, for coming up with a successful idea. Through crowdsourcing campaigns, businesses can solicit advice from the public on things like:

For instance, a company that makes ice cream might attract interest by holding a competition to choose the name and ingredients of a new flavor. The business could offer a variety of potential ingredients and enable users to submit name and combination suggestions through their website. After reviewing the crowdsourced submissions, the business could conduct a second round of crowdsourcing by asking people to vote for their top five ideas in a poll. The ice cream shop raises local awareness by holding this contest, and participants have an incentive to try their new flavor when it debuts.

Content creation

To add a personal touch to their advertisements, many businesses crowdsource content from their audience. In order to use public submissions in their marketing materials or crowdsourced advertising campaigns, businesses can collect them. They request content from their audience that they can then repost or use to market their brand, such as videos, images, audio, or text. Types of marketing campaigns that involve crowdsourcing content creation include:

A skateboard company posting on social media asking followers to submit drawings to print on their upcoming limited edition skateboard deck with prizes for the top designs would be an example of content creation crowdsourcing. They could highlight fan submissions on their social media accounts throughout the competition to pique the audience’s curiosity and excitement.

Another way the skateboard company could use content crowdsourcing is to request skateboarding videos from fans, then compile those videos into a commercial. In both scenarios, fans can experience the thrill of seeing a favorite brand use their creations, and the business can profit from increased web traffic and social media reach.


Crowdfunding is the practice of soliciting a large audience to make modest financial contributions to a project in order to reach a significant fundraising target. Crowdfunding can be used for marketing purposes as well as for raising capital for businesses. Companies can use crowdfunding campaigns to promote new products and introduce their brand to potential customers who might be interested in contributing and could benefit from what they have to offer. People who contribute to a campaign because they believe a product is worthwhile may tell their friends and family about it if they think they would also be interested.

For instance, a small video game studio might start a crowdfunding campaign to raise funds for the launch of a game on a new platform, offering donors rewards like free downloads or credits if they help them reach their target. People who contributed might be inspired to encourage others to share the crowdfunding page with them in order to ensure that they receive enough money to finish the project.

Essential conditions for crowdsourcing marketing

There are a few fundamental requirements that crowdsourcing marketing strategies must be able to meet in order to be successful.

Benefits of crowdsourcing marketing strategies

There are numerous benefits to taking into account crowdsourcing as a marketing strategy. The following are some of the main advantages of crowdsourcing marketing:

Improving analytics

You can gather information from a sizable sample of people when crowdsourcing concepts, data, and funds. Many crowdsourcing initiatives demand that participants fill out forms with their demographics, purchasing patterns, and other crucial information. This makes using crowdsourcing to conduct market research and learn specifics about their current customer base an affordable option.

Engaging customers

Through crowdsourcing, customers can interact directly with a business and its goods, which can increase brand loyalty and make customers feel more invested in the brand. Customers are more likely to consider and use a company’s products if they are presented with engaging contests and opportunities for brand exposure. If the business uses one of their submissions or launches a product feature that they voted for in a competition, it gives them a personal incentive to make additional purchases.

Generating sales

Sales can increase as a result of the publicity that a company receives from a crowdsourcing campaign. Through a crowdsourcing campaign, people can discover a brand for the first time and make their first purchase because they identify with the business. Some buyers might also value it if other buyers contributed to molding a product to precisely fit their requirements. This is due to the fact that users of the product have useful suggestions for improving it.

Curating content

You can easily curate your brand to meet those expectations when you let the consumer choose the types of content they want to view. You can build an audience within a niche by featuring user submissions, soliciting feedback from consumers, and providing them with the types of content marketing they are most interested in.

Fostering innovation

You can get a wide variety of original ideas by gathering data from the general public. If you only used concepts from your internal marketing team, you might not have learned about any novel ideas. By hearing directly from your audience, crowdsourcing marketing can help you stay on top of new trends.


What is an example of crowdsourcing?

While some crowdsourcers complete small tasks voluntarily, others occasionally work as paid freelancers. For instance, traffic apps like Waze encourage motorists to report collisions and other road incidents so that app users can access real-time, updated information.

What are the 4 types of crowdsourcing?

In the final chapter of the book, Howe describes the four main types of crowdsourcing: 1) Crowd Wisdom; 2) Crowd Creation; 3) Crowd Voting and 4) Crowd Funding, each of which I have outlined in more detail below. The blogger Steve Keifer summarizes what Howe’s book describes as four variants of crowdsourcing:

What does crowdsourcing mean?

Crowdsourcing is the practice of asking a large group of people for information, products, or services. In his article “The Rise of Crowdsourcing” for Wired magazine in 2006, author Jeff Howe coined the phrase “crowdsourcing,” which combines crowds and outsourcing. “.

How does crowdsourcing influence marketing strategy?

Utilizing crowdsourcing to create your marketing communications gives you insight into what your customers are thinking. You can market your goods or services to have the greatest impact on the market by “cracking the code” of consumer motivation using the crowd.

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