UGC Ads: A Proven Secret for Brands (+ How to Use Them)

Two reasons why UGC ads have been on the rise: they cost less compared to traditional ads.

And better yet, unlike traditional ads, they don't cause ad fatigue, which is so common with conventional ads since people see thousands of ads daily.

People crave authenticity, and UGC ads deliver exactly that—real people, real experiences, and real results.

That’s why brands using UGC see higher trust, better engagement, and lower ad costs compared to traditional advertising.

If you’re wondering what makes UGC ads such a powerful tool and how top brands are using them, you’re in the right place. We break it down with examples, tips, and stats to help you get started.

Key Takeaways:

• User-generated content (UGC) ads get 4x higher click-through rates and 50% lower cost-per-click than standard ads.
• 79% of consumers say UGC influences their purchases, and 92% trust peer recommendations over branded content.
• Popular UGC formats include short-form videos, influencer collaborations, social media campaigns, and customer testimonials, driving 28% higher engagement.
• Brands like Airbnb, Apple, and Nike use UGC to build trust and grow their communities with millions of user-generated posts.

What Are User-Generated Content Ads?

UGC ads are advertisements that feature content made by customers, fans, and creators - not brands - including testimonials, videos, and photos that naturally build trust and drive conversions.

UGC ad creation relies on real, authentic content. Since they blend naturally into any ad campaign, they’ve become a go-to strategy for social media, influencer marketing, and review platforms.

UGC Meaning for Brands

Statistics, trends, and studies show that traditional advertising just doesn't cut it for people anymore, and they are more likely to rely on peer recommendations and reviews before making a purchase.

This trust makes UGC a game-changer for brands that want to connect with their target audience more effectively.

By making UGC a key strategy of their marketing campaigns, businesses can increase engagement, build credibility, and increase conversions—all while letting their customers do the talking.

That's the real value or UGC in paid ads, which makes UGC worth it for brands. Let's have a closer look at how powerful UGC really is.

Benefits of UGC Ads

Here's why brands are making user-generated content an important part of their marketing strategy:

1. Authentic, Raw Content

People engage more with UGC-style ads that feel real and unfiltered. 79% say UGC influences their buying decisions because it seems more authentic than brand-made ads.

UGC ads show real people using products in everyday life, making them relatable and trustworthy. Unlike overly polished brand ads, they drive 28% higher engagement and build a stronger emotional connection with potential buyers. Authenticity is the magic ingredient that sets UGC apart from conventional advertisements.

2. Audience Trust

People trust people, not brands. That's why UGC ad creatives are a marketing powerhouse.

92% of consumers trust peer recommendations over the typical ads we're used to. Real experiences and testimonials build credibility, strengthen brand trust, and drive conversions better than polished brand campaigns ever could. But there's more; 68% of consumers trust a brand more after seeing user-generated content associated with it.

3. Increased ROI and Conversions

UGC ads beat brand-created content because they tap into social proof to drive real action.

Studies show they rack up 4x higher CTRs than conventional ads and cut cost-per-click (CPC) by up to 50%.

The fact is that people trust real experiences over fake, acted, or made-up brand messages.

If you're looking for a high-impact, budget-friendly way to boost engagement and conversions, UGC ads are the way to go.

4. Increased Engagement

UGC ads fit right into social feeds, making them feel like organic content rather than obvious ads. That's why they boost engagement by 28% over brand-created ads.

People are 2.4x more likely to like, comment, or share UGC because it feels more real, relatable, and worth engaging with.

5. Credibility

You can't fake authenticity, but you can amplify it.

UGC-style content boosts credibility by 2.4x by featuring real customers and their genuine experiences. Authentic testimonials and user feedback build trust, strengthen brand reputation, and drive conversions—consumers are 2x more likely to trust UGC over brand-created content.

6. Cost-Effective

Creating high-quality brand content is expensive and time-consuming, but UGC ads are a scalable, budget-friendly alternative.

Brands using UGC cut content costs by up to 50% while getting a steady flow of fresh, authentic material that actually connects with audiences. It's a smart, high-ROI move for businesses of all sizes.

Types of UGC Ads

Let's have a look at the different types of ads. For more details on their benefits and how to make high-quality UGC ads that work for you, find helpful UGC ads tips.

UGC Video Ads

Short-form UGC video ads on TikTok, Instagram Reels, and YouTube Shorts are some of the most effective ad formats out there because they're fast, real, and engaging.

Video content gets 1,200% more shares than text and images combined, and UGC videos drive 10x higher engagement than traditional brand ads.

Their secret? They blend right into social feeds, avoiding the "ad fatigue" that overly polished and produced ads create.

On top of that, UGC video ads boost watch time and conversions by showing real people using products in everyday situations—whether it's an unboxing, a testimonial, or a quick tutorial.

The result? A more authentic, relatable experience that builds trust and drives action.

Influencer Marketing

Brands team up with micro and macro influencers to create UGC-style ads that feel natural—more like organic content than traditional promotions. These ads seamlessly blend into social feeds, keeping authenticity intact while leveraging the trust influencers have with their audience.

Micro-influencers, in particular, drive 60% higher engagement than larger influencers, making them a game-changer for UGC campaigns. Featuring real people using a product in everyday scenarios makes these ads feel like personal recommendations, leading to higher conversions and stronger brand loyalty.

Social Media

Instagram, TikTok, and Facebook are gold mines for UGC social media ads—these platforms run on real, user-generated content. That’s why brands repurpose customer posts, reviews, and unboxing videos into high-performing paid social campaigns.

With 79% of people saying UGC influences their buying decisions, these ads feel more relatable, build trust, and blend naturally into social feeds.

Whether it’s a testimonial for TikTok ads, an Instagram Story demo, or a Facebook review-turned-ad, UGC campaigns drive higher engagement, lower CPC, and stronger conversions than traditional brand content.

Best Practices for UGC Ads

To create effective UGC ads, brands should follow best practices that ensure authenticity, relevance, and engagement. Here are some key considerations:

How Do I Choose the Best UGC Ad Format for My Product?

Choosing the right UGC ad format depends on your product, your audience, and the platform you’re using. Here’s how to decide:

Match the Format to the Platform

• Short-form videos (TikTok, Instagram Reels, YouTube Shorts) work best for visually engaging or demo-based products. High-quality visuals are essential in UGC ads to attract viewers' interest.
• Image ads (Facebook, Instagram, Pinterest) are great for showcasing aesthetics or lifestyle appeal.
• Carousel ads (Facebook, Instagram) help display multiple product features or satisfied customer testimonials.

Consider Your Audience’s Preferences

Preferences can vary based on factors like industry, product type, and personal habits. It's always best to analyze your audience’s behavior and test different ad variations. Reduce the cost with AI UGC ads and run even more tests to see what works best for your target audience.

Younger audiences, especially Gen Z and Millennials, engage more with short-form video content on social media channels. These formats match their preference for quick, visually appealing content that grabs attention instantly.

Older demographics, like Gen X and Boomers, are more familiar with traditional online formats like Facebook posts, image-based ads, and text-heavy reviews. They tend to appreciate detailed information and trust-building content, including testimonials and written reviews.

Repurpose the Best UGC Content

• Turn customer reviews into visual content – Overlay standout quotes from reviews onto images or short video clips to add credibility and social proof.
• Transform unboxing or testimonial videos – Edit longer videos into short, attention-grabbing clips. Highlight honest reactions, product benefits, or before-and-after results.
• Use real customer photos in ads – Incorporating UGC to carousel ads, story formats, or side-by-side comparisons with professional product shots makes the content more relatable.
• Convert UGC into carousel or slideshow ads – Combine multiple customer testimonials, images, or videos into a single interactive ad to provide a fuller picture of your product's value.
• Create before-and-after comparisons – If applicable, show real-life transformations using customer-submitted photos to highlight your product’s effectiveness.

How Do I Find the Best UGC Creators for My Product?

Finding the right UGC creators is key to producing authentic and engaging content. Here are three effective ways to do it:

• Use UGC Platforms

Platforms like Influee simplify the process by connecting brands with vetted UGC creators who match their style and target audience. These platforms provide access to creators with proven content quality, making it easier to scale your UGC strategy without extensive searching or outreach.

• Search Social Media

Explore Instagram, TikTok, and YouTube to find creators who align with your brand’s niche. Look for influencers who already engage with your industry, use relevant hashtags, or create content similar to what you need. Analyze their engagement levels, content quality, and audience demographics to ensure they’re a good fit.

• Work with Micro-Influencers

Micro-influencers (creators with smaller but highly engaged audiences) are a cost-effective way to generate high-quality UGC. Their content feels more personal and relatable, often driving better trust and engagement than larger influencers or brand-produced ads. Many micro-influencers specialize in creating organic-feeling content that blends seamlessly into social media feeds.

UGC Ads Examples from Successful UGC Campaigns

Let’s have a look at the success stories of large brands for UGC ideas:

Airbnb & #AirbnbExperiences Campaign

Airbnb thrives on UGC by showcasing real travelers’ experiences and repurposing guest-generated photos and videos to promote destinations in a personal and inspiring way.

Their #AirbnbExperiences UGC ad campaign took this further, encouraging users to share adventures—from treehouse stays to local cooking classes and guided tours.

With over 250,000 Instagram posts, this campaign built authenticity, inspired new travelers, and highlighted Airbnb’s diverse offerings. More than just booking a stay, Airbnb positioned itself as a gateway to immersive, unforgettable experiences.

Apple & #ShotOniPhone Campaign

Apple's #ShotOniPhone campaign is a prime example of UGC advertising. By showcasing real user-generated photos, Apple reinforced its camera quality while building a strong community of creators.

Launched in 2015, the campaign invited iPhone users to share their best shots, which Apple then featured on billboards, print ads, and online platforms.

With over 6 million Instagram posts and 6.5 billion media impressions, this strategy built authentic engagement, strong community involvement, and undeniable visual appeal. It also earned 24,000 mentions from global opinion leaders, with 95% being positive.

Nike & #JustDoIt Campaign

Nike has mastered UGC marketing by featuring athletes and everyday users in action. Their #JustDoIt campaign turned a simple slogan into a global movement, encouraging people to share fitness milestones and personal triumphs.

With over 20.8 million Instagram posts, this strategy built authentic engagement, a strong community, and brand credibility. By amplifying real stories, Nike reinforced its message of perseverance and determination, inspiring millions worldwide.

Challenges of UGC Ads

Legal Considerations

Using UGC in advertising requires permission from content creators. Brands must secure explicit consent before repurposing customer photos, videos, or reviews. Clearly explain how the content will be used and document consent to avoid legal issues.

Example: An apparel brand running a hashtag contest can include a consent clause in the terms and conditions to ensure usage rights

Brands must also respect copyright and intellectual property laws. Ensure UGC doesn't contain copyrighted material—like music or logos—without proper licensing.

Example: A fitness brand featuring user-generated workout videos must ensure that background music or branded gym equipment doesn't infringe on copyright or trademark rights.

Maintaining Brand Image

Not all user-generated content aligns with brand values, so businesses must establish clear brand guidelines and criteria for selecting UGC that fits their image. Working with influencers or content creators who reflect your brand identity ensures consistency.

Curating Brand-Aligned Content – Choose UGC that complements your visual style and brand messaging to maintain a cohesive brand presence.

Example: Apple carefully selects user-generated photos that match its minimalistic and premium aesthetic, ensuring brand consistency across ad campaigns.

Effectively managing these challenges is key to a successful UGC strategy. By implementing clear guidelines, working with the right creators, and learning from successful UGC campaigns, brands can maximize the benefits of user-generated content while minimizing risks.

Get Started with UGC Ads on Influee

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What is UGC in marketing?

User-generated content (UGC) refers to authentic content created by consumers rather than brands. It includes reviews, testimonials, social media posts, and videos that showcase real user experiences.

Do UGC creators make money?

Yes, UGC creators can earn through brand collaborations, affiliate marketing, and content licensing. Many brands pay creators to produce authentic promotional content.

What is the UGC meaning?

UGC stands for User-Generated Content—any content created by unpaid contributors, often consumers, rather than the brand itself.

Is UGC legal?

UGC is legal as long as brands obtain proper permissions to use consumer-generated content in their advertisements. Always credit creators and follow copyright laws.

What is a UGC example?

A common UGC example is a customer posting a video review of a product on TikTok, which a brand then repurposes into a paid ad.