What is UGC?
UGC or User-Generated content is not a new term, it has been around for years in the marketing world but as the social age evolves so has the buzzword. I like to think of UGC as the modern-day word of mouth.

UGC ads are advertisements created by a customer/creator rather than the brand itself. UGC ads come in a ton of different formats, think testimonials, unboxings, trends, product reviews, tutorials & more. If you spend time on social media, no doubt you have come across these relatable ads with people just like you & me talking about a product they love & their experience. By showcasing real people in your videos, whether it be your ads or your organic content, you can ultimately build more credibility with your community & customers.

Why UGC Ads?

• Consumers trust other people more than brands. It's simple: authenticity resonates. 72% of customers believe it is more credible when other customers share their experiences rather than brands speak for themselves (1).
• TikTok thrives on authenticity. Don't just make ads, make TikToks. Organic, engaging content performs way better than stiff, corporate messaging.
• The numbers don't lie. 85% of consumers find UGC content more influential than traditional ads (1). 
• More cost-effective than influencer & editorial campaigns. Ads made with UGC content cost 70% less than traditional ads and UGC ads received 4x higher click-through rates than traditional ads (2).

Here's the tea: while an influencer can cost tens of thousands to a few million dollars, UGC can cost next to nothing if you leverage your audience to create content for your brand. UGC creators are the next best option, as they are qualified to make converting authentic content at a fraction of the cost of influencers.

How To Buy UGC Content for Ads:

As a brand, you can create your UGC ads in-house, leverage your community to make assets or hire a UGC creator to make the ads. Many brands opt to hire UGC creators and influencers because they are experienced in creating authentic converting content, following scripts, editing videos, and live & breathe the social media trends. 

Finding UGC Creators

The first and most time-consuming part of buying UGC ads is sourcing the creators and handling the creator management process. There are plenty of UGC marketplaces and platforms that you can sign up for to be connected with a batch of creators. UGC agencies are also popping up all over the map, outsourcing to an agency like VITAMINC is a great way to ensure you will receive converting video content, vetted UGC creators, and a team to write all the creative along the way. 

Other agencies include 222, InBeat, The UGC Shop

Include a Creative Brief

Once you have selected the right UGC creator for your campaign/content, you need to provide them with a sufficient amount of clear concise details to lay out the agreement, expectations, script, timelines, branding & brand language, etc. Most brands use a creative brief to send to UGC creators to ensure everyone is on the same page in the collaboration. 

A good creative brief will lead the creator to success, and include things such as a description of your product or service, content requirements, content examples, documents, and deadlines. A brief keeps everyone aligned so that there is no disappointment once the final UGC content has been created and delivered.

Ads By Platform:

TikTok UGC Ads

TikTok is largely responsible for the massive explosion in UGC marketing over the past few years. While scrolling your FYP, you are guaranteed to see UGC ads one after another. TikTok ads have a Click-Through Rate (CTR) of 1.5%, higher than the average of Facebook (0.9%)

Differently from Facebook and Instagram, UGC ads on TikTok are majority video only, with the exception of carousel image posts. TikTok also has its version of influencer whitelisting called TikTok Spark Ads. Spark Ads are an ad format that allows advertisers to tap into authenticity by boosting organic content on someone else's profile with ad spend. 

The viral vegan beauty brand Isle of Paradise reached out directly to a series of creators who had already created organic testimonial videos and worked with them to repurpose their content for a UGC campaign. After running Spark Ads featuring the UGC content, the results boasted a 500% ROI, 45 million video views, and a 68% increase in revenue per week.

Instagram UGC Ads

Reels offers a potential advertising audience of over 758 million. Instagram UGC ads are similar to Facebook in the sense that they typically can come in both video and image; moreover, stories and reels are heavily leveraged when it comes to serving the ads. Ad costs on Instagram are comparable to other leading social media platforms like Facebook.

Brands Killing it with UGC Ads on Instagram: Armra Colostrum, Thrive Cosmetics

Facebook UGC Ads

By showcasing attractive UGC on your Facebook ads, you can improve engagement and relevance. Facebook used to lean toward traditional marketing however in recent years, the platform is dominated by brands incorporating UGC into both their video & image ads.

Brands Killing it with UGC Ads on Facebook: Dog Is Human, DIvi, Sun Bum   

Embrace the Future of Marketing:

For years, influencing & editorial ads have flooded the social media space. But the tide is turning. UGC is the next frontier, allowing brands to connect with audiences on a deeper level, build trust, and skyrocket sales. Give the people what they want to see!

Ready to unlock the power of UGC ads? Contact VITAMINC today! We'll help you craft a winning UGC strategy, source the creators, and handle the entire content creation process seamlessly, saving you the headache!

Sources: 1. Meetanshi, 2. joinbrands 3. TikTok for Business

By Maddy Heller | Creative Director @ VITAMINC