Influencer Marketing and UGC vs Traditional Advertising: What Works Best in 2025?

June 30, 2025
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June 30, 2025
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Alina Ibarra
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Influencer Marketing and UGC vs Traditional Advertising: What Works Best in 2025?

In a time when attention spans are shorter than ever and consumer behavior continues to evolve, brands are constantly seeking the most effective ways to reach and engage their audiences.

Traditional advertising no longer holds the same power it once did.

While it can still be effective, more and more brands are turning to influencer marketing and user-generated content as key tools to connect with their audiences and create meaningful impact. In fact, in 2024, influencer marketing propelled social media to become the world’s largest advertising channel, surpassing traditional methods.

The main difference between Influencer marketing, UGC and traditional advertising is that The main difference between influencer marketing, UGC, and traditional advertising is that the first two rely heavily on authenticity, relatability, and peer influence. Instead of brands speaking at consumers, influencer marketing and UGC allow real people—trusted voices or everyday users—to speak with them.

This shift creates a more organic form of engagement that feels less like a sales pitch and more like a recommendation from a friend. Traditional advertising, by contrast, often feels one-sided and impersonal, especially to younger generations who have grown up immersed in social media.

In this article we will examine the reach, impact, credibility and customer engagement that traditional advertising has in comparison to influencer marketing and UGC as well as give an example of brands that did both analyzing the results.

What is Traditional Advertising?

Traditional advertising refers to any advertising or outreaches activities done offline, through non-digital channels for example television, radio, billboard,newspaper and magazine adverts where brands aim to reach their target market.

There is a dependency on physical channels rather than digital, this is the main difference. Through repeated exposures brands look to build loyalty and awareness.It is said that traditional advertising has a way of being included in your routine, it can be by reading the newspaper everyday and seeing an ad there or just walking by the street and coming across a billboard.

Takeaway: Traditional advertising relies on offline channels like TV and newspapers to build brand awareness through repeated exposure.

Decoding the Traditional Advertising Way

While traditional advertising has shown incredible results in the late 20th and 21st centuries, dominating television, radio, and print media, its role in today’s form of communication is not the same. Nowadays digital channels have risen up to take their glory, as everyone is watching, listening, consuming online.

Understanding the evolution, strengths and current limitations is key to understanding what is the best way to reach your target audience. In this section, we’ll explore the actual strengths of traditional advertising in this current state of the world as well as the challenges.

Traditional Advertising Strengths

  • Broad Reach and Scalability: Traditional methods such as TV and radio can reach massive audiences within minutes all at the same time, which makes it an effective option for mass-marketing campaigns.
  • Credibility and Trust: Nowadays, many related ads they see online are scams, being afraid of entering links many times. Whereas, consumers often perceive traditional ads as trustworthy.
  • Tangible and Memorable: The longevity of traditional ads is an important factor. Physical materials like brochures can make a lasting impression and can be reused several times.
  • Local Targeting: By advertising in local newspapers, or near specific locations you can target specific geographic areas effectively. There’s been a 21.3% increase in local TV political ad spending as campaigns continue to prefer local broadcasts for its effectiveness in voter persuasions.

Challenges of Traditional Advertising in a Technological World

  • High Costs: Whether it’s a billboard or radio/TV commercials, this can be expensive especially given the fact that if brands advertise they will do it during prime hours or busy streets to have more impact. 79.3% of businesses reported that traditional advertising costs are higher compared to digital advertising.
  • Limited Tracking and Analytics: Unlike digital advertising, traditional methods lack the tracking insights and metrics that can help a brand understand the impact of their efforts as well as learn for next campaigns.
  • Declining Audience Engagement: With the rise of social media, there’s been a decline in the engagement in traditional platforms.
  • Less Flexibility: If something goes wrong and brands need to change something in their ads this is not easily done. Once the ad is running it is challenging to modify anything, unlike digital ads which can be altered in real-time.
  • Loss of Message: Traditional channels can be overstimulating as they are filled with jingles, fast-paced commercials, and other distractions, making it easy for the message to get lost.

Takeaway: While traditional advertising still holds value for its credibility and broad reach, its high costs, lack of flexibility, and declining engagement in today’s digital world make it a less agile option for modern marketer.

Why Traditional Advertising?

Although consumer behavior is constantly evolving and digital marketing is undoubtedly at its peak, traditional advertising still holds strong. Both brands and individuals continue to rely on it—not out of habit, but because it remains effective in specific contexts.

This is largely due to the massive and undeniable reach mentioned before. One advertising in prime time when the audience is highly engaged, allows the brand to reach millions at once.  This massive exposure is difficult to duplicate in a fragmented digital environment.

Not only this but brands have gained a lot of loyal followers by just doing traditional ads that people like and are heartfelt, like Coca-Cola during Christmas. Wherever we live, wherever we are we can all expect to see a Coca-Cola TV Commercial or Billboard that brings joy to our heart and tears to our eyes. This helps build a sense of belonging within the brand's audience bringing them closer.

Lastly, differently to digital channels, there is a lower dependency on algorithms. In digital platforms, the algorithm decides what and when to show it, whereas with traditional advertising brands can have guaranteed visibility and control the message.

Takeaway: Traditional advertising continues to play a vital role by offering mass reach, emotional impact, and message control—qualities that digital channels can’t always guarantee.

Case Study: McDonald’s - “Raise Your Arches”

In 2023, McDonal’s launched a campaign called Raise Your Arches in the UK using traditional channels such as TV, Cinema and transit advertising. The commercial didn’t show food or any store but rather different people arching their brows as if inviting the other to go to McDonald’s.

This commercial also featured a trendy and catchy song that is key for advertisements to receive exposure. While the commercial was launched on traditional channels it quickly gained the attention of the people online due to the creativity and emotional touch that every McDonald’s commercial tends to have.

Social media was quickly filled with memes and reactions demonstrating that even nowadays, traditional advertising can gain traction and raise awareness when done right, connecting with the digital world.

Takeaway: McDonald’s Raise Your Arches campaign proves that traditional advertising can still be highly effective in the digital age—when paired with strong creative concepts and emotional resonance, it not only captures attention on traditional platforms but also spills over into social media, bridging the gap between old and new media to create meaningful brand engagement.

The Emerge of Influencer Marketing and UGC in a Digital Time

Influencer marketing and user-generated content represent a new wave of advertising, driven by the rise of digital technology and social media, each with a different focus:

Influencer Marketing involves partnering with people who have a good following, online presence and good engagement to promote a product or service and boost brand awareness on their account.

  • Influencer Marketing involves partnering with people who have a good following, online presence and good engagement to promote a product or service and boost brand awareness on their account.
  • User-generated content encompasses using the content created by users about the products and their experience with the brand which the brand uses to promote on their own channel.

Both of these last strategies, rely on digital channels mostly on social media and have gained more and more traction as the digital landscape continues to evolve and audiences increasingly seek authentic and relatable content online, while staying easily influenced by what they see.

Nowadays people relate and consume products based on the recommendations of users or influencers as they feel a sense of loyalty and trust their opinions whereas simply seeing a billboard, no matter how persuasive, may not be enough to drive engagement.

The critical role of influencer collaborations and user-generated content in regards to today’s social commerce is undeniable. The combination of both these strategies will undoubtedly result in the growth and recognition of your business  while also building a strong, authentic community around your brand. In addition, by fostering these types of relationships and implementing these tactics, brands can improve their reach, conversion, customer engagement, and credibility.

Takeaway: Influencer marketing and user-generated content leverage digital platforms and real user experiences to engage audiences more personally and authentically.

Influencer Marketing

Influencer Marketing Strengths

  • Authenticity and Trust: Influencer followers tend to be highly engaged and receptive to their recommendations. The trust that is built within those communities is difficult to acquire any other way, so by associating with the influencer your brand gains trust, recognition and authentic followers. 51% of all respondents have made a purchase after seeing a product used by an influencer
  • Targeted Reach: By allying with an influencer, you can access a more delimited target audience and even niches which provides with far more possibilities and effectiveness in the investment that general advertising where you can’t control who it appears to.
  • Content Creation: As it tends to be their primary job, influencers put a lot of effort in doing aesthetically pleasing content maintaining a high-quality visual in all that they post, so by partnering together you will get valuable content you can reuse for your own social media or even paid campaigns.
  • Enhanced Engagement: By simply talking about your brand influencers are already capturing the attention of their audience creating buzz and intrigue around your product or service, this helps boost engagement and build a community.
  • Impact: Brands gain instant exposure and quick delivery of the message to large audiences by collaborating with influencers.

Influencer Marketing Weaknesses

  • Fake-followers and Inflated Metrics: As influencers marketing has become a serious job, more people have been tempted to buy fake followers and manipulate metrics to secure more brand deals and recognition, but this backfires as it impacts negatively on the results of the campaign.
  • Audience Fatigue: Influencers that tend to make brand deals after the next with the sole focus of money, tend to lose their audience attention quickly due to the excessness and inauthentic posting. 47% of consumers are frustrated by repetitive influencer content.
  • Misalignment with Brand Values: If brands choose poorly about the partnerships with influencers, the audience may see the poor fit and be confused and lost in the message
  • Authenticity Concerns: When Influencers partner with brands that do not match their profile or their content, it’s clear the lack of authenticity of their recommendations and can lose the trust of their followers.

Takeaway: Influencer marketing can significantly boost trust, engagement, and reach when well-aligned, but its impact depends heavily on authenticity and strategic partnerships to avoid audience fatigue and credibility loss.

Case Study

VisitScotland & Social Influencers – #ScotlandIsNow Campaign

In 2018, VisitScotland which is the national office of tourism in Scotland launched a campaign called #ScotlandIsNow with the goal to help position the country as an ideal destination, with the help of influencer marketing.

They manage to work with influencers who dedicate their content to international travel as photographers, videographers or lifestyle bloggers, making recommendations and sharing the places they have visited.  These creators shared authentic content of their experience in Scotland, from its beautiful views to their food and local culture, gaining the love and attention of their followers.

The results were amazing, they managed to reach millions of followers without traditional methods of advertising and their costs as well as generating tons of high quality content for the brand which they were able to reuse. Lastly, they managed to raise the interest and boost tourism which helped Scotland and its inhabitants largely.

This continued on and in 2024, influential TikTokers like Bryan Millar Walker and Millie Graham have become prominent voices showcasing Scotland. By leveraging trusted voices in the travel space, VisitScotland successfully reframed the country’s image for a new generation of traveler.

They went as far as set up Scottish Influencer Award based on categories where they choose the influencer that made a positive contribution towards the image and appeal of brands, people and places in Scotland, and beyond.

Click here to explore more successful influencer marketing case studies.

Takeaway: The #ScotlandIsNow campaign shows how influencer marketing can humanize a destination, attract new demographics, and replace or complement traditional advertising with high-impact, low-barrier storytelling.

User-generated Content

How can User-Generated Content be Sourced

There are different ways to acquire the content done by users so brands can reuse them in their own channels. These can be:

  1. Organic UGC: This is the content that users create and share on their own, without an initiative from the brand. It can be someone doing a review about a product or showing a new launch. It can be found by branded hashtags and social mentions and tags.
  2. Hashtags Captions: This is when brands prompt users to post content using a branded hashtag they created, this can help brands collect content around a specific theme for e.g. the #ShareACoke campaign from Coca-Cola that invited everyone to find the bottle with their name on it.
  3. Contest and Giveaways: Brands can offer prizes or giveaways to those who create and share organic content about their brands, driving user-generated content.
  4. Influencer/Creator Partnerships: It’s often paid or incentivized by brands who partner with an Influencer to create engaging, high-quality content.
  5. Reviews and Testimonials: It’s when brands encourage customers to leave reviews, rating or stories about their product and experience.
  6. UGC Platforms and Tools: There are platforms dedicated to collect content from social media with the permission from the creators and provide brands with all the content in the same place for them to manage UGC.
  7. Direct Submissions: Some brands prefer to let users upload their content directly on their website or apps for e.g. travel sites asking users to upload photos of the destination they visited.

Takeaway: UGC can be sourced in multiple ways—from organic posts and branded hashtags to contests, reviews, influencer partnerships, and dedicated platforms.

User-generated Content Pros

  • Social Proof: UGC has the undeniable power of serving as a digital word of mouth, by sharing organic content through the users social media, it provides with a sense of authenticity that paid advertising can deliver and with that comes the trust in the recommendation. Never underestimate the power of word of mouth, especially when it has the potential to reach an infinite audience through social media.
  • Cost-Effective Marketing: this social commerce strategy is arguably the most cost-effective as it is an affordable way to build recognition, awareness and credibility without investing much requiring only brand’s encouragement for customers to post user-generated content.
  • Organic Reach: User-generated content not only positions your brand better in the SEO ranking but has also proven to be a valuable organic way of boosting the presence of your brand across social media outlets and search engines.
  • Credibility: Statistics show that 79% of people say UGC highly impacts their purchasing decisions.
  • Engagement: UGC improves  loyalty and a sense of community towards the brand increasing interaction, considering users feel seen by the brand as their content is shared on their channel.
  • Impact: UGC amplifies brand reach, as users who share content talking about the brand expose it to a whole new audience in an organic way.

User-generated Content Cons

  • Lack Of Control Over The Message: Inconsistency is a recurrent problem as users are not limited on what to say or the tone considering it is their own content. This can bring a potential problem to the brand if it’s not adequate.
  • Reputational Risk: As this is user-generated content it may reflect their own character, it may be offensive or not on brand for the business which can have a negative impact. When exposed to fake or toxic UGC 45% of users  say they will lose all trust in a brand.
  • Low Content Quality: User-generated content may differ from the brand's visual aim, it may not be aesthetic or not have a good narrative affecting the brand's image.
  • Time-consuming: Determining which content to use in official channels can take resources, time and effort, as content has to be revised one by one before deciding.

For a complete guide on the use of UGC check here.

Takeaway: User-generated content offers brands an authentic, cost-effective way to build trust and reach through real customer voices, but requires careful curation to avoid reputational risks, inconsistent messaging, and quality issues.

Case Study

GoPro - “Photo of the Day” Campaign

This campaign is a prime example on how UGC can be a great marketing strategy for your brand. With the initiative “Photo of the Day”, GoPro encourages their followers to post photos and videos captured with their GoPro camera using the hashtag #GoPro.

Each day, the brand chooses the best one and posts it on their official channels (Instagram, Twitter, website, etc). Winners of the Photo of the Day challenge receive social media exposure, GoPro gear, and cash prizes.

By doing this, the brand is exposed to a massive audience organically and at the same time gains the attention and a loyal following in an entertaining and interactive way.

Also, they get new content without the necessity to shoot it themselves, saving time, money and effort. Not only this but the engagement and the brand exposure gained from this campaign was amazing.

Takeaway: GoPro demonstrates how UGC can be a scalable, cost-effective marketing engine. By empowering users to tell their own stories, the brand builds trust, authenticity, and a continuous stream of engaging content that feels more relatable than traditional ads.

Performance and ROI Comparison: Influencer Marketing and UGC vs Traditional Advertising

When talking about return of investment (ROI), influencer marketing and user-generated content (UGC) are known for offering a more lasting and authentic impact for brands in comparison to traditional advertising.

While traditional advertising tends to center on short term results, influencer centered campaigns are likely to generate a bigger impact in terms of engagement and improve the conversion rate at a lower cost per impression (CPM). In addition to this, user-generated content not only boosts brand visibility quickly but also contributes to building stronger audience relationships and loyalty which is harder to achieve through traditional advertising channels.

In relation to metrics, it is clear that collaborations with micro and nano influencers are more cost-efficient as results are proven especially in niche industries where trust and relevance is key.

To sum up, influencer marketing and UGC are not only more cost-friendly strategies but also sustainable in the long term.

Takeaway: Influencer marketing and UGC offer a more engaging, cost-effective, and long-term sustainable ROI compared to traditional advertising. With lower CPM, higher engagement, and stronger audience trust, these strategies help brands build lasting connections beyond short-term visibility.

When to Use Each Approach

Based on GoodFirms survey, we can understand that nowadays 59.9% of the businesses have devoted less than 25% of their marketing budget to traditional advertising, while 33.8% of the businesses designate between 51% to 75% of the budget to digital advertising.

Even as the budget for traditional advertising has lessened,there is a small percentage of  businesses that still trust that it helps boost business credibility and awareness and is key when local targeting, even though it is not ideal as it does not help when segmenting the audience, is harder to track results and has higher costs. The majority of them are favoring digital advertising as it has proven benefits in today’s digital age when talking about reach, velocity, enhanced visibility, targeting, insights, among others.

According to the survey, 66.5% of businesses are willing to increase their investment in digital advertising and 94.5% of the survey participants opt for social media ads to promote their products. However,  78.5% of the surveyed businesses, rapidly changing trends are a drawback of digital advertising.

These figures reflect a strong shift toward digital, but also highlight the value in combining approaches. Here’s when to use each:

Use Traditional Advertising When:

  • Aiming to communicate to a mass audience, on a national or regional scale via TV, radio and print. Brands need to have large budgets and broad targeting for this to be effective.
  • The goal is building brand credibility as some generations still associate traditional advertising and channels more trustworthy than any other form.
  • Your brand needs wide exposure quickly, as it is easier to be exposed to a larger audience in an instant. This is specially useful when launching a new product for e.g.
  • Your campaign is locally focused, as by advertising in billboards or local radio you can guarantee exposure within a certain location/community.

Use Influencer Marketing & UGC When:

  • Your aim is to have authentic engagement and good storytelling as UGC and influencer offer a real-life perspective that consumers trust
  • You need precise audience targeting considering digital platforms allow you to filter your target by interest, behavior, location, and more.
  • Your goal is to build a sense of community focusing on connection since this format invites two-way interaction.
  • You are on a tight budget, given that  working with micro or nano-influencers can be pocket friendly in comparison to traditional advertising and offer high engagement.

Use a Hybrid Strategy When:

  • Your goal is to maximize broad reach with targeted trust of influencers simultaneously
  • Your launching a major campaign with multiple objectives and an ample budget that supports multichannel execution.

Takeaway: While digital advertising dominates for its reach, targeting, and insights, traditional ads still hold value for credibility and local impact. Many brands combine both, but success depends on aligning the strategy with your goals, audience, and budget.

What’s Working in 2025: Key Trends  

So far in 2025, one of the most effective and successful trends is influencer-created content.

Brands are putting their faith more and more in collaborations with micro and nano influencers, which offers a more authentic and direct connection with their audiences. Not only this, but the focus it’s not limited to only one platform, content creators are present in every used platform nowadays.

If you are an engaging content creator there is no doubt that your social media presence is not limited to Instagram but also TikTok and even Youtube. Youtube has Youtube Short now that allows creators to post shorter content and reach the attention of those who look to watch shorter content, similar to TikTok.

Each channel has their own format that works for them, so it’s key for a brand to ally with those content creators that know what works for their audience and have a loyal following already. This has proven useful to generate a sense of community as well as focusing on engagement.

Takeaway: In 2025, brands succeed by partnering with micro and nano influencers who create platform-specific, authentic content that drives engagement and community.

Key Features of Influencer Hero: A Complete Platform for Influencer Campaigns and UGC Management

Influencer Hero offers an extensive and complete end-to-end management platform that allows for campaign management with Influencers and enables users to take full advantage of user-generated content.

  1. Advanced Influencer Finder: Easily connect with the right creators for your brand by filtering the influencer database by age, follower count, location, keywords, topics, and more. This feature helps you find the perfect match for your campaign goals.
  2. Real-Time Performance Metrics: Track how your campaigns are performing in real time. Get instant insights into what’s working and what isn’t, allowing you to adapt quickly and maximize your impact.
  3. Centralized Communication: Keep all your influencer conversations in one place. This streamlines collaboration, reduces back-and-forth emails, and keeps everyone aligned throughout the campaign.
  4. In-Depth Analytics: Access detailed reports on your campaign’s performance, including reach, engagement, and conversions. These insights help you make data-driven decisions and scale your strategy efficiently.
  5. Streamlined Content Approval: Ensure all branded content meets your guidelines before it goes live. The platform simplifies the approval process so you can maintain consistency and quality across every post.
  6. Contract and Payment Management: Automate and manage influencer contracts and payments from within the platform. This saves time, reduces manual work, and ensures smoother collaboration with your creators.
  7. UGC Tracking and Repurposing: Monitor how user-generated content performs and easily repurpose high-performing posts across different channels. This boosts engagement while reinforcing authenticity in your brand messaging.

Whether you’re launching a one-time campaign or building long-term ambassador programs, Influencer Hero gives you the tools to manage everything in one place — making your influencer marketing and UGC efforts more effective and scalable.

Takeaway: Influencer Hero simplifies and centralizes every step of your influencer marketing and UGC strategy, from finding the right creators and tracking performance in real time, to managing approvals, payments, and repurposing top content, all in one powerful platform.

Final Thoughts on Traditional Advertising vs Influencer Marketing and UGC

As consumer expectations evolve, the shift toward trust-based, content-rich marketing strategies is clear. While traditional advertising still plays a role in brand awareness, modern consumers crave authenticity, engagement, and transparency—all of which influencer marketing and UGC deliver in spades.

Platforms like Influencer Hero are essential in this new era, providing brands with the tools to discover the right creators, manage partnerships, and scale content creation without sacrificing authenticity. The key is no longer about pushing ads—it’s about starting conversations, building community, and co-creating value with your audience

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FAQs
Is influencer marketing part of digital marketing?

Yes, influencer marketing is a subset of digital marketing. It involves collaborating with social media personalities or content creators to promote products online, typically through platforms like Instagram, TikTok, or YouTube. It complements strategies like SEO, PPC, and email marketing by adding a layer of human connection and authenticity.

What is the ROI of influencer marketing compared to traditional advertising?

Influencer marketing often delivers a higher ROI than traditional advertising. Studies have shown that businesses earn an average of $5.78 for every $1 spent on influencer campaigns, whereas traditional ads tend to have a broader reach but lower engagement and conversion rates. Influencer campaigns also benefit from precise tracking and performance analytics.

3. Why do consumers trust influencers more than traditional ads?

Consumers trust influencers more because they often share personal, relatable experiences with products, creating a sense of authenticity. Traditional ads, on the other hand, are seen as paid, scripted, and less credible. Influencers build long-term relationships with their audiences, making their recommendations feel like trusted advice.

What are the risks of using influencer marketing over traditional advertising?

While effective, influencer marketing carries risks like fake followers, brand misalignment, or non-compliance with advertising regulations (e.g., lack of #ad disclosure). Traditional advertising is more regulated and offers brand control, but lacks the flexibility and agility of influencer-driven campaigns.

How does UGC support influencer marketing strategies?

UGC complements influencer marketing by providing scalable, authentic content from real customers that brands can repurpose across campaigns. It builds social proof, increases credibility, and can fill gaps in content production, making influencer efforts feel even more grounded and community-driven.

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