According to a new eMarketer report, while social media seems to be a viable format for online advertising, its unpredictable nature makes it a risky one for businesses to rely on.
User-generated videos in particular are often avoided by marketers and advertisers, who opt instead for professional media content, which they consider to be safer and more reliable.
However, senior analyst and author of the report Paul Verna claimed that businesses need to take more risks when it comes to user-generated content on social media sites because it is likely to pay off.
They could do this, he suggested, by working alongside the web publishers in order to ensure the material is safe.
He explained: "For marketers, that means taking risks and becoming savvier about finding safe havens within social media channels.
"For site publishers, it means creating environments where marketers feel comfortable investing their ad dollars."
This comes after market researcher YouGov claimed that user-generated content sites should try to make money out of their audience by using advertising, creating a give and take nature in social media.