What Is UGC and How to Use It in Advertising?
In a world oversaturated with polished ads and scripted influencers, one form of content continues to outperform: user-generated content (UGC).
Whether it’s a customer filming a product unboxing or a micro-creator sharing a raw testimonial, UGC has become a cornerstone of modern advertising. It’s real, relatable, and above all — it works.
This article explores what UGC is, why it’s effective, and how to use it correctly in your advertising strategies.
What Is User-Generated Content (UGC)?
User-Generated Content refers to any type of content — images, videos, text, reviews — that is created by real users rather than brands. In the context of advertising, this content is often repurposed or commissioned to promote a product or service.
Key Characteristics of UGC
- Created by individuals, not companies
- Perceived as authentic and unbiased
- Often created with mobile phones or in non-studio settings
- Frequently features real-life scenarios and personal opinions
Common Types of UGC
- Product reviews or testimonials
- Unboxing or how-to videos
- Social media stories or reels
- Lifestyle photos featuring the product
- Before & after transformations
- Duets or reactions (e.g., TikTok trends)
Note: Not all UGC is organic. A growing share of brands now commission UGC from creators, which still maintains authenticity but offers more control over format and message.
Why UGC Works in Advertising
UGC taps into something polished ads often miss — trust.
Trust & Authenticity
According to a study by Nielsen, 92% of consumers trust UGC more than traditional advertising. Why? Because people trust people more than they trust brands.
- UGC looks real, not staged.
- It reflects actual use, not idealized marketing.
- It connects emotionally, not transactionally.
Boost in Engagement & Conversions
A report by Stackla revealed that UGC drives 5x more conversions than branded content.
Additionally:
- UGC in ads increases click-through rate (CTR) by 2–3× on average.
- Social campaigns that include UGC receive 50% more engagement.
Cost-Efficiency
UGC can also lower production costs dramatically. Rather than hiring agencies, renting studios, and scripting actors, brands can leverage existing creators or customers who already know how to film themselves.
How Brands Are Using UGC in Advertising
The use of UGC spans across paid, organic, and owned media. Here's how it's commonly integrated:
Social Media Campaigns
UGC is widely used on platforms like Instagram, TikTok, and YouTube to:
- Build community via reposts
- Run hashtag challenges
- Show product use in real environments
Paid Advertising
Brands often use UGC in:
- Meta (Facebook & Instagram) Ads
- TikTok Spark Ads
- YouTube Shorts Ads
These UGC-style ads tend to outperform traditional creatives, especially in early-stage awareness and mid-funnel retargeting.
Email Marketing & Landing Pages
Featuring UGC in emails can:
- Increase open and click rates
- Reduce unsubscribe rate
- Create social proof without needing case studies
Offline Advertising
While less common, some innovative brands now use UGC in:
- Out-of-home advertising (e.g., user video snippets on urban screens)
- Retail environments (e.g., photo walls or digital reviews displays)
How to Source UGC (Ethically and Legally)
1. Encourage Organic UGC
Ask happy customers to tag your brand, leave a review, or participate in a challenge. Incentivize with:
- Discounts
- Giveaways
- Early access or spotlight features
2. Run Campaigns or Contests
Create a clear brief and invite users to participate with:
- Branded hashtags
- Specific content formats (e.g., “How I use [product] daily”)
- Deadline and reward structure
3. Commission UGC Creators
You can work directly with creators who specialize in UGC production. This offers:
- High-quality content
- Predictable delivery
- Legal protection via platform contracts or content rights
4. Mind the Legalities
Never use content without explicit permission. Always ensure:
- Licensing terms are documented
- You have usage rights for ads, not just reposts
- Content use duration is defined
Pro tip: Use platforms or contracts that handle this automatically.
Best Practices for Using UGC in Ads
- Keep it authentic – avoid over-editing or making it feel “produced.”
- Highlight real benefits – focus on user pain points, not brand slogans.
- Use subtitles – 85% of social videos are watched without sound.
- Open strong – hook attention in the first 3 seconds.
- Test multiple variations – not all UGC hits equally.
Bonus tip: Blend UGC with branded overlays (logos, CTAs) for balance.
Common Mistakes to Avoid
- Using UGC without consent – even if it’s public, that doesn’t mean it’s yours.
- Treating UGC like traditional ads – don't add voiceovers, scripts, or actors.
- Neglecting context – not all content formats perform equally across platforms.
- Ignoring moderation – not every piece of UGC aligns with your brand values.
Case Studies: Brands Winning with UGC
Gymshark
Built an entire brand around UGC by encouraging fitness influencers and real users to tag and share workouts wearing their gear. Their hashtag #Gymshark66 generated millions of impressions organically.
Glossier
Relies heavily on UGC from its customers, often reposting makeup selfies and skincare routines. UGC accounts for a huge portion of their Instagram content.
Daniel Wellington
Launched its brand using influencer UGC — rewarding customers for stylish photos wearing their watches and tagging the brand.
Future of UGC in Advertising
UGC is evolving — fast.
- AI tools will help brands sort, select, and test UGC at scale.
- Automated licensing via blockchain or smart contracts may become the norm.
- Creator marketplaces will grow, connecting brands and UGC creators more efficiently.
Expect to see UGC play a larger role in performance marketing, replacing the old model of agency-controlled ad creation.
Conclusion
User-generated content isn't just a trend — it's a proven format that aligns with how modern consumers engage, decide, and buy.
By understanding what UGC is, how to source it legally, and how to implement it thoughtfully into your advertising mix, you can create ads that people trust, click, and share