Monetizing your content as a UGC Creator: Paid Ads vs. Organic UGC Content

Welcome back to the VITAMINC blog! As the Creative Director of VITAMINC, I'm excited to guide you through an in-depth comparison between Paid Ads and Organic UGC (User-Generated Content). This post will help you understand the differences, explore how much brands are willing to pay for each type of video, and provide tips on creating each style of content. If you’re an aspiring or seasoned content creator looking to land more paid brand deals, keep reading to unlock expert tips on content creation and ad scripting!

The Difference Between Paid Ads and Organic UGC Content

Paid Ads

Paid Ads are content that brands pay to promote on various platforms such as Instagram, TikTok, Facebook, and search engines like Google. These ads are designed to reach a specific audience quickly and drive particular actions, such as clicks, purchases, or sign-ups. This also includes Whitelisting Ads where the brand pays to promote a creator's content on their page.

Key Features:

• Targeted Reach: Ads are shown to a specific target audience based on demographics, interests, and behaviors.
• Quick Results: Immediate visibility and engagement due to paid promotion.
• Control: Brands have full control over the messaging, design, and placement.

Organic UGC Content

Organic UGC is content created by UGC creators that naturally gains traction without paid promotion behind it. Brands will pay for this type of content to furnish their social feeds, use on their website landing pages, and as reviews! This content is typically more authentic and relatable, as it reflects genuine experiences/storytelling and opinions.

Key Features:

• Authenticity: Content feels more genuine and trustworthy.
• Community Building: Builds a loyal and engaged community over time.
• Cost-Effective: No paid promotion, just pay the base rate for the video. 

How Much Brands Will Pay for Each Type of Content?

Paid Ads

Brands are willing to invest significantly in paid ads due to the precise targeting and measurable results they offer. Especially if you have social proof/ case studies and can show that you were able to make high-converting ads in the past for other brands! Here’s a breakdown of potential earnings for UGC creators:

• Sponsored posts: Base rate = $200 + Usage Rights (40% per month) for a beginner UGC Creator
• For example, the brand pays $200 for the video and wants 3 months of paid ad usage rights ($200 * .40) = ($80 x 3) = $240; 
  • $240 + $200 = $540 for one paid ad video

Organic UGC Content

While organic UGC might not command the same high fees as paid ads, it still offers lucrative opportunities, especially for creators who offer.

• Organic Base Rate Video: $200 - $300 per video for organic use only

How to Create Each Style of Content:

Creating Paid Ad Content

Paid ads require a strategic approach to scripting and creation.

It's called the direct response formula:

1. Hook (0-3 seconds):

• Capture attention immediately.
• Use a bold statement or intriguing question.
• For example, “TikTok made me buy this”

2. Problem:

• Address a common pain point your audience faces.
• Make it relatable and clear.
• For example, Problem: If you're like me and tried every sunscreen on the market but always break out.

3. Solution:

• Introduce the product or service as the solution.
• Highlight key benefits and features.
• For example, Solution: then you have to try VACTION whipped sunscreen...

4. Value Props or USP:

These are unique selling points that set the brand/product apart from the rest of its competition. You can usually find these on the brand's website & marketing platforms.

• Robinhood's USP is “Investing for everyone.”
• Hello Fresh's USP is "America’s Most Popular Meal Kit”
• Warby Parker's USP is “Try 5 frames at home for free”

5. Social Proof:

What is social proof? It gains credibility and authority. When we see other people buying something, it affects our buying decisions, too.

• i.e. praises on social media, positive 5-star reviews + expert opinions
• I saw this viral product all over my FYP...

6. Call to Action:

• Encourage immediate action (e.g., "Click the link," "Buy now").
• Use strong, clear language.
• For example, "Get yours today before they run out! Click my link in bio"

Tips for Filming:

• High-Quality Visuals: Use good lighting and a high-resolution camera.
• Engaging Audio: Ensure clear sound quality and consider background music to set the tone.
• Concise Messaging: Keep the message clear and to the point.

Creating Organic UGC Content

Organic UGC content thrives on authenticity and relatability. Here’s how to approach it:

1. Storytelling:

• Share personal stories and experiences that induce the brand organically
• Be genuine and transparent, honestly shows.

2. Interaction:

• Encourage comments and share user feedback.
• Respond to your audience and engage in conversations.

3. Value-Driven Content:

• Provide tips, tutorials, or insights relevant to your niche.
• Offer value that keeps your audience coming back.

Tips for Filming:

• Natural Settings: Film in real-life settings to enhance authenticity.
• Casual Tone: Use a conversational tone to connect with viewers.
• Spontaneity: Don’t over-rehearse; let your personality shine through.

Important Metrics for Paid vs. Organic Content:

Paid Ads Metrics

• Reach: The number of people who see your ad.
• Impressions: The total number of times your ad is displayed.
• Click-Through Rate (CTR): The percentage of viewers who click on the ad.
• Conversion Rate: The percentage of clicks that result in a desired action (e.g., purchases).
• Earnings or Profit: The (cost of creator + ad spend) - the revenue made from the ad.
• Return on Ad Spend (ROAS): Revenue generated for every dollar spent on the ad.

Organic UGC Metrics

• Engagement Rate: Likes, comments, shares, and saves.
• Reach: The number of unique viewers who see your content.
• Impressions: Total number of times your content is displayed.
• Watch Time/Retention: How long did viewers watch the video? (the longer, the more viral the post will go)
• Follower Growth: Increase in the number of followers over time.
• Content Shares: Number of times your content is shared by viewers.

Use Cases for Paid Ads vs. Organic UGC:

As a UGC Creator, it is important to be able to create both paid ads and organic content to capitalize on what brands are looking for, what actually gets results, and what's most profitable for your time! According to Hootsuite, 79% of marketers plan to continue investing in Instagram, highlighting its importance for both paid and organic strategies. UGC on Instagram sees a 4.5% higher conversion rate than brand-created content.

Paid Ads

• Product Launches: Quickly generate buzz and drive sales.
• Promotions and Discounts: Reach a wide audience with special offers.
• Retargeting: Re-engage users who have previously interacted with your brand.

Organic UGC

• Brand Awareness: Build a loyal following and increase brand visibility.
• Community Engagement: Foster a sense of community and encourage user interaction.
• Customer Feedback: Gather authentic reviews and testimonials.
• Viralitry and hitting relevant trends: Influencer Marketing Hub reports that organic UGC on TikTok tends to go viral more easily, thanks to its algorithm favoring engaging content.

Conclusion

The world of content creation offers endless opportunities, and understanding the nuances between paid ads and organic UGC content can help you maximize your brand deals and pay. Whether you’re creating targeted paid ads or authentic organic content, both approaches have their unique benefits and can significantly enhance your brand partnerships.

At VITAMINC, we’re dedicated to helping you turn your passion into a fulfilling career. By mastering both paid and organic content creation, you can diversify your income streams and build a thriving personal UGC brand. Now is the perfect time to dive in and make your dreams a reality.

Thank you for joining us on the VITAMINC blog. Stay tuned for more insights, tips, and inspiration to help you succeed in the ever-changing world of UGC and content creation. If you have any questions or need further guidance, download our Free UGC Career Kickstarter Guide to Make Your First $1000 Brand Deal. Let’s make your passion your paycheck! ⬇️ ⬇️ ⬇️ ⬇️

Sources:

• Influencer Marketing Hub, "Influencer Marketing Benchmark Report 2023"
• Hootsuite, "The State of Instagram Marketing 2023"
• Adweek, "The Power of TikTok: How Brands Can Benefit"