What Are UGC Ads? A Beginner’s Guide for Brands

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What Are UGC Ads? A Beginner’s Guide for Brands

User Generated Content (UGC) has become one of the most effective forms of social proof. Studies show that people trust other people’s recommendations far more than a brand talking about what they offer. In fact, 84% of people trust peer recommendations more than branded content and 79% recognize that UGC has directly influenced or still does, their buying decisions. 

With this trend, it is no surprise that more and more brands are turning to online platforms like Tiktok, Instagram or YouTube to incorporate customer voices into their marketing strategies. UGC ads act as social proof, whether it’s a product demo from a creator or a “day in the life” video featuring a specific product or service, UGC content blends authenticity with marketing intent. These ad formats often mirror native content on each platform, making them more engaging, less intrusive, and ultimately more effective at driving conversions than traditional brand-led ads.

In this article, we’ll break down the most popular UGC ad formats, what makes them effective, and what brands should consider before launching their next UGC campaign. Let’s dive into it!

What is User Generated Content (UGC)?

UGC refers to any content created and published by real people rather than brands. It showcases authentic experiences, opinions, and interactions with a product or service, making it more relatable and trustworthy to potential buyers. 

The key to User Generated Content is that people trust it. It’s not a brand showcasing its own products and trying to make a sale, it's someone like them who decided to share their personal experience with a product or service. 

UGC has become a key strategy for brands that are looking to engage with their audience in a more authentic way. That’s why brands must figure out how to effectively incorporate UGC into digital marketing operations, strategies and tactics to maximize their outcomes! 

What Are UGC Ads?

An UGC Ad is a piece of content created by a real person that shows off a product in a super natural, relatable way. These ads use content generated by users as the main creative, instead of counting on big production and editing teams to make the different pieces. 

The Magic of UGC Ads lies in their authenticity. As it’s real people showcasing or using real products in their daily routines, the content is less likely to be skipped or ignored. For example, a UGC ad might show a TikTok creator walking through their skincare routine using your product, rather than a polished commercial with actors and studio lighting.

User Generated content comes in a variety of formats. Each type can be strategically used in ads to resonate with different audiences on different platforms. 

Difference Between UGC and Traditional Brand-created Content

While both types of content are produced around a brand’s product or service in order to promote it, UGC and Traditional Brand Content are not the same. 

User Generated Content (UGC) is made by real users or customers, in most cases they are social media creators and fans of certain brands. This content feels more authentic and spontaneous. 

Brand-created Content is made by the brand or marketing agencies to promote what they offer. This type of content is really polished, scripted and edited and the brand controls the whole creative process. 

Down below is a quick comparison table between the two: 

Feature UGC Ads Brand Content
Creator Real customers or everyday users Brand team or production agency
Tone & Style Casual, authentic, unscripted Polished and professional
Production Cost Low to moderate High
Platform Fit Feels native to social media feeds Can feel like an obvious ad
Audience Perception Trusted, relatable. Like a friend’s recommendation. Promotional, less personal
Conversion Impact Higher Moderate to high

Difference Between UGC Ads and Influencer Marketing

While both UGC ads and Influencer Marketing leverage content created outside a brand's team, they serve different purposes and follow different strategies.

UGC Ads are paid advertisements created from content made by real customers or fans of a particular brand. This content feels more authentic and spontaneous as it shows real people sharing genuine experiences. 

Influencer Marketing is a strategy in which brands partner up with content creators to promote different products and services in exchange for an agreed compensation. 

Down below is a quick comparison table between the two: 

Feature UGC Ads Influencer Marketing
Creator Everyday users / customers Professional influencers
Tone & Style Casual, authentic, unscripted Polished and aspirational
Production Cost Low to moderate Varies, often higher
Purpose Repurposed for paid advertising Organic and sponsored promotion
Control Brand has more editing control Influencer controls the final post
Reach Depends on ad targeting Depends on influencer’s audience

Why are UGC Ads Effective

UGC Ads are becoming more popular among marketers as they showcase authentic experiences, opinions, and interactions with a product or service, making it more relatable and trustworthy to potential buyers. Here are the main reasons why UGC Ads easily outperform regular, more traditional online ads:

  • Boost Trust and Credibility: People trust people. UGC feels authentic, reliable. It’s like a friend recommending something to you rather than the brand talking about their products. Real users generating content work better than extremely polished brand scripts and videos. 
  • Improves Conversion Rates: UGC ads usually showcase products or services in the real life, into daily routines incrementing the possibility of purchase. In fact, 79% of people say UGC highly impacts their purchasing decisions.
  • Enhances Engagement: Relax style content works better on platforms like TikTok or Instagram where users go for entertainment not product pitches. That’s why when people see others sharing their experiences, they’re more likely to engage with the content and either purchase the product or service to try it out. 
  • Cost Effective Strategy: Brands can encourage users to create this type of content and avoid spending lots of money on paid creators. This way, brands get authentic content and consumers get to be seen and valued by their favorite brands.
  • Allows Creative Variety: UGC ads can vary formats and platforms. You can also combine different tones and creators in search for what works best for your brand. 
  • Platform Native Feel: UGC blends into user’s feed, it looks more like another regular organic post than a specific ad advertising something. 

Where to Use UGC Ads

UGC Ads work best when placed where people are already engaging with creator’s content or recommendations. When it’s shown in the right context and platform, over 79% of consumers' buying decisions are highly impacted by UGC efforts. 

Here are some of the best placements for your UGC Ads: 

  • Social Media Platforms: Instagram Reels, TikTok, and Facebook Stories are the top channels here UGC and success. These platforms prioritize authentic, engaging, and native-feeling content, making UGC the perfect fit.
  • Paid Social Campaigns: Brands often integrate UGC Ads into their paid campaigns on Meta (Facebook and Instagram), TikTok Ads and YouTube Shorts to maximize performance. The good thing about them is that these ads blend in with organic content, increasing general interactions.  
  • E-Commerce Pages: Displaying User Generated Content such as reviews, unboxing videos, or customer photos, directly on product pages increases conversion rates. This happens because shoppers trust real people’s experiences when making purchasing decisions.
  • Email Marketing: UGC ads are a great match with newsletters or promotional emails. Photos of videos generated by real users work as social proof and can directly impact your CTR. 
  • Campaign Extensions: Some brands repurpose influencer content as UGC-style paid ads, especially for retargeting or awareness campaigns. These often feel more personal and relatable than traditional branded content.

Types of UGC Ads used in Ads

Here’s a breakdown of the most common types of UGC ads and how brands successfully use them:

Text - Based UGC Ads

Text UGC includes social media captions, forum posts, blog posts or comments or any customer feedback. While this type of content does not have any visual appeal, it’s  incredibly valuable for context and brand storytelling. 

When It’s Most Effective?

UGC Text Ads works great in different scenarios: 

  • Reviews: Text Ads can serve as quotes or written reviews in ads or product pages. 
  • Testimonials: You can use Text Ads as testimonial as social proof of your product / service worth. 

Why Does It Work For Brands?

UGC Ads in a text format work for brands because: 

  • Adds credibility with real voices, experiences and opinions. 
  • Easily repurposed across formats and platforms. 
  • Drives emotional resonance when tied to real life customer experiences. 
Tarte Cosmetics and The 4th Costumer x Creator Trip

Tarte Cosmetics received a wave of comments on Instagram from followers asking them to send “real people” and not just influencers on their next branded trip. Instead of ignoring the feedback, the brand embraced these DM’s and shaped a story. 

Tarte created a video response announcing that real fans would be invited to join the next Tarte trip. The idea came from users, not the brand. The way the brand responded boosted engagement and loyalty as it shows that the brand really listens and cares for its customers. 

Image - Based UGC Ads

Photos shared by users showcasing the product or service can be turned into visual ads on Instagram, Facebook and some email marketing campaigns. Visual content is great to highlight the use of different products in real life scenarios and also adds a sense of credibility. 

When It’s Most Effective?

UGC Image Ads works great in different scenarios: 

  • Social Media Campaigns: Sharing customers photos on visual platforms like Instagram and Facebook enhances authenticity. 
  • Email Marketing: Incorporating user images in newsletters can increase click-through rates.
  • Product Websites / Pages: Displaying real-life usage photos helps potential customers envision themselves using the product.

Why Does It Work For Brands?

UGC Ads in an image format work for brands because:

  • Authenticity: Real photos from real people build more trust than bank or stock images. 
  • Engagement: User pictures usually get better engagement as they show the product being used, in a real scenario rather than on its own. 
  • Community Building: Featuring user images fosters a sense of community and loyalty among your customers. 
Airbnb Using Real Guest Experiences as UGC On Her Instagram Account

Airbnb from time to time shares photos taken by real guests that capture the different aspects of their stay. 

These images feel casual, taken from real moments at vacations. 

Video - Based UGC Ads

UGC videos reflect real experiences, real opinions, and real people, making them incredibly powerful tools. Instead of polished ads, you get relatable, trustworthy content that feels like a recommendation from a friend.

Videos are the most powerful UGC tool that can go from product unboxings, reviews, “day in the life” content and so many more different types of UGC videos you can include into your marketing mix. 

When It’s Most Effective?

Video UGC Ads works great in different scenarios: 

  • Product Launches: Videos featuring unboxings or first reactions contribute to FOMO (Fear Of Missing Out) and early excitement. 
  • Product Instructions: Videos are great for demos, tutorials or showing specific results. 
  • Brand Trust: Seeing a real person demonstrating a product’s value can significantly build more trust than a static ad or a written copy alone as in a video you are directly watching a real experience that, in a way, you almost get to experience it yourself as a user too. 

Why Does It Work For Brands?

UGC Ads in a video format work for brands because: 

  • Feels Native: Videos blend into the user's feed without feeling too salesy or promotional. 
  • Builds Trust Fast: Real people using a product or service creates visual and emotional proof. 
  • Higher Engagement: Videos drive better watch time. 
Nike’s Magic Boots TikTok Videos UGC Campaign

Nike launched the #MagicBoots challenge on TikTok to promote their new football boots. First they feature different creators and professional players to encourage people to make their own videos and share them on the platform. The campaign achieved over 160,000 user-generated videos, significantly boosting brand engagement. ​

Reviews - Based UGC Ads

Users share personal experiences and opinions about a product or service. Whether you post them on your social media or platforms like Amazon or Trustpilot these types of content is gold. Product Reviews are great for new customers doing research. 

When It’s Most Effective?

Review UGC Ads works great in different scenarios: 

  • Consideration Stage: Reviews are great for whenever a potential customer is comparing different products in the market. Honest, real reviews can make your brand stand out. 
  • Post Purchase Reinforcement: Sharing costumers positive reviews as ads can help reassure recent buyers they made the right call by choosing your brand. 

Why Does It Work For Brands?

UGC Ads in a review format work for brands because: 

  • Social Proof: Real customer experiences make your product more real and trustworthy. 
  • Decision Making: People trust other people's reviews more than traditional ads. Adding these types of content to your strategy can really boost your sales. 
Glossier Product Reviews UGC To Instagram Ad Strategy

Glossier, the make up brand, often turns real customer reviews into minimalist ad creatives. The brand pairs it with a product shot and a swipe-up link . Simple, relatable, and effective.

Social Media Posts - Based UGC Ads

Any social media post on X, Pinterest, Instagram Post or Stories, Facebook, TikTok and more can be used in static or animated formats ads on the brand’s page. 

When It’s Most Effective?

Post UGC Ads works great in different scenarios: 

  • Amplifying Trending Content: If a creator’s post is gaining traction organically, it’s a great idea to turn it into an ad to extend its reach even further.
  • Seasonal Campaigns: Using real time content from creators during holidays or particular events makes your brand feel alive and connected to what people are doing on the platforms. 
  • Brand Awareness: Sharing organic mentions, posts or tags during particular launches or campaigns not only adds momentum to your strategy but also makes your brand feel closer to its customers. 

Why Does It Work For Brands?

UGC Ads in a social post format work for brands because: 

  • It Feels Organic: Every repurposed post blends perfectly into the user’s feed. If it’s well done, the ad intention behind it will be almost imperceptible. 
  • It’s Versatile: You can re-share UGC Posts with minimum editing, especially when talking about IG Stories, Reels or TikToks. 
  • Sense of Community: Featuring customers posts shows you value your audience and this builds loyalty and trust. 
Sephora and The #SephoraSquad Campaign to Re-purpose UGC Posts

Sephora, the make up and skincare brand, frequently reposts TikToks and Instagram Reels from influencers and customers trying out their products with the hashtag #SephoraSquad. These social media UGC clips often become part of paid ad campaigns or in-feed posts that drive high engagement and conversions.

Best Practices For High Performing UGC Ads

To make the most out of your UGC Ads strategy you can follow these best practices to ensure great results! 

1. Tell a Relatable Story

The key to UGC is that it is about everyday situations. So make sure to tell a story along with the product you want to advertise. Follow the classic narrative arc: introduction - problem - solution - outcome. Tell your story in a way that users can see themselves in the creator’s experience. 

2. Keep Your Message Focus

Make sure your ad has a clear and compelling call to action. It can be something like “Shop Now!” or “Try it out now” or even “Go check the link in bio”. UGC has a more relaxed tone yet don't ever forget the purpose of your ad. 

3. Platform Matters

Each content platform has its own rhythm and user expectations. For example, an UGC video that does well on TikTok may not perform that well on platforms like Facebook or YouTube. Understand the best formats, durations and styles for each platform and adapt your ads to match the platform where they'll be shown. 

4. Embrace Imperfection

The beauty of UGC relies on authenticity. An informal setting and casual language can really boost performance by making the content feel more genuine and trustworthy. Always remember that UG works as a recommendation from a friend, you don’t go to a friend for perfection, you go for a real experience. 

5. A / B Testing

Don’t be afraid to make necessary changes. Never take any format or platform for granted and assume you know for sure what content will work. Test different creator personalities. Styles  and visuals. This way you can find out if a casual video recorded at someone’s car performs better than a highly produced studio piece. 

UGC Ads Don'ts

UGC Ads are a great way to showcase your brand. However there are some key mistakes you better avoid when incorporating this strategy into your marketing efforts: 

  • Don’t Ignore The Creator’s Voice: What makes UGC such a success is the authenticity of the content. Let the personality of the different creators shine and connect on a deeper level with possible consumers. 
  • Don’t Over Script: Very detailed scripts can kill the creator’s natural vibe and make the content feel more like a paid endorsement rather than a real person recommendation.
  • Don’t Over Edit: In the same line, excessive retouching, editing or production work can strip away authenticity, and that’s the key to UGC effectiveness. You need to keep it as organic and real as possible. 
  • Don’t Make It About The Product: All the best UGC Ads focus on experiences not just the item being sold. Try to lose focus on what you are selling and make a story, such as a morning routine or weekly habit, that naturally integrates the product or service your brand is offering. 
  • Don’t Forget Diversity: One of the strengths about UGC Ads is that you get the chance to show a wide range of people using your product / service. Don’t rely too heavily on one type of user. Try to combine different styles, always align with your brand, to discover new broader potential buyers. 
  • Don’t Use Content Without Consent: Always set the terms and conditions with the creators beforehand. You have to ask and negotiate usage rights with influencers. Get the proper permissions, especially if you are planning to turn organic posts into paid ads. 

Legal and Usage Rights

Even the most authentic UGC ad can lead to legal trouble if you don't have the proper rights to use the content. Asking for a green light for content is a must in order to keep your UGC strategy running without any issues. 

Your brand can draft a professional and polite message to the influencer asking permission to reuse their content. Getting legal stuff upfront protects not only your brand but also the creators you are working with. 

Anytime you are partnering up with a creator you should keep up with content usage rights to fully respect creative property and ensure a good relationship between brand and creators. Usage rights define how, where, and for how long content can be used, preventing any conflicts due to misunderstandings. Clear usage rights agreements help maintain brand integrity, avoid potential legal disputes, and ensure that content aligns with brand guidelines.

How to Find the Right Creators and Formats for Your Brand

UGC is a big world. There are plenty of UGC creators out there willing to make content or already making content around your brand. How to know which one to partner with? Finding the right creators is about aligning your brand voice with real people who already share your values, tones and audience. 

Here’s how to start: 

Look Where Your Audience Already Is

A great way to find creators is tracking your brand on different platforms. 

  • Explore hashtags related to your niche and scroll to all those user generated posts to see what is working. 
  • Check which users are already tagging your brands on their content. They might be your next UGC creator. 
  • Look at your competitors’ UGC and see what formats and creators are working for them.

Try Different Creator Styles

Whenever you are working with UGC don’t be afraid to try new things. Test different creator styles until you find the perfect match: 

  • Try content from niche experts, everyday consumers and nano and micro influencers. Find what each one has to offer and how it aligns with your brand's needs. 
  • Don’t just stick to “one kind of creator”. Try  different tones such as funny, educational, aesthetic or emotional to see which connects best with your audience.

Experiment Different Formats

Same goes here! Try every format you can until you find the best for your brand. 

  • Run tests with different formats: text, image, videos, reviews and more. Don’t hesitate to explore and combine different content pieces. 
  • Consider both polished and raw content. Sometimes a spontaneous selfie-video performs better than a high-production one.

Encourage Participation

Engage with your community and ask them to create original content. 

  • Launch a UGC challenge under a specific hashtag encouraging users to share their experience.
  • You can feature the best post on your social media or ads. This will  motivate others to join and make your brand feel closer to its customers. 
  • Engage directly in the comments or DMs to invite people to submit content.

Tools to Scale Your UGC Ads

If you’re serious about scaling your UGC strategy, dedicated tools can save you time, ensure legal clarity, and help deliver consistent, high-performing content. 

Here are the top 3 best platforms you can add to your UGC Strategy: 

1.Influencer Hero

2. Billo

3.Trend.io

Platform Influencer Hero Billo Trend.io
Best For All-in-one UGC + influencer management Fast, affordable video UGC at scale Quick UGC from pre-vetted creators
Content Types Video + Image Video only Video + Image
Creator Discovery Advanced filters (niche, platform, engagement) Not included Basic creator matching
Platform Integration Instagram, TikTok, YouTube, and more TikTok, Instagram Instagram, TikTok
Pricing $$$ (mid to high-tier plans) $ (pay per video starting at $59 per video) $$ (no subscriptions needed. Pay per project)

1. Influencer Hero

Influencer Hero, an influencer marketing platform offers a creator finding tool so you can get the perfect match for your brand!  You can try out the platform's advanced search filters to quickly discover UGC creators based on platform, niche, location, engagement rate, and content style.

This makes it easier to identify creators already producing the kind of content your brand needs.

Main Benefits: 

  • Comprehensive creator discovery tools
  • Integrated campaign management
  • Advanced search filters for the perfect match

2. Billo

Billo gets you access to over 5,000 talented creators and lets you manage multiple projects seamlessly  all in one platform. Billo specializes in simplifying your video production. It's particularly useful for brands looking to produce short-form videos for platforms like TikTok and Instagram.

Main Benefits: 

  • Easy video UGC content
  • Affordable prices per video
  • Ideal for short-form video platforms

3. Trend.io

Trend.io offers a curated network of pre-vetted creators. You can submit your brief and  source for high-quality UGC. The platform emphasizes performance-optimized content and offers flexibility with no long-term contracts.

Main Benefits: 

  • Access to pre-vetted creator
  • Focus on performance-optimized content
  • No long-term commitments required

Whether you’re looking for a skincare enthusiast on TikTok or a fitness creator on Instagram, the platform makes it easy to find creators already producing the kind of content your brand needs. What are you waiting for? Check out Influencer Hero’s marketing tools and start your UGC strategy today!

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Last Considerations Before Launching an UGC Campaign

You can have different goals you want to achieve with the launch of a particular UGC campaign. Whatever those goals are, always make sure to work on usage rights with creators to make the most out of your UGC efforts. 

Once you agreed on terms and conditions around the content, here’s what you need to do: 

Set Your Marketing Goals

The clearer your goals are, the better you can align the content to drive the results you seek. Think about what you want to get out of this campaign. Is it brand awareness? Conversions? Consumer loyalty? Think of your funnel stages and where each ad type fits in:

  • Awareness (Top of Funnel): Create interest and visibility. 
  • Consideration (Middle of Funnel): Help your audience evaluate and learn. 
  • Decision (Bottom of Funnel): Drive conversions and build trust. 

Consider Your Product Type and Category

Understanding your product category can help shape the format, tone, and platform for your UGC efforts. This is important to notice as not all products perform the same with UGC. Some naturally lend themselves to visual storytelling, while others may require a more creative approach. 

Here’s a quick overview of how different product types align with UGC strategies:

Product Type Platform Fit Why It Works
Beauty & Skincare YouTube, Instagram Consumers want to see real results and applications.
Food & Beverage TikTok, Instagram Reels Visually engaging and easy to share.
Fashion & Apparel TikTok, Instagram Showcases fit, style, and personality.
Tech & Gadgets YouTube, Instagram Viewers rely on demos before buying.
Home Decor & DIY Instagram, Pinterest Transformation content is both inspiring and useful.
Services (e.g. wellness, finance) YouTube, LinkedIn Builds trust through real-life experiences.

Set Your Audience

Think of the people you are talking to and find out what type of content resonates better with them. 

To make your UGC content effective you need to mirror the world of your audience. To do that, you must: 

  • Know Demographics: Breakdown your audience by age, location, values, interest and hobbies. 
  • Know Preferences: Identify on which platform they spend most time, TikTok, YouTube or Instagram, and also which type of videos do they enjoy the most.
  • Know Engagement History: Look at previous top-performing posts to see what sticks.

Set KPIs and Benchmarks

Set key performance indicators, such as engagement rate or CTR, to track your performance. Review existing data (view counts, retention, etc.) to track progress.

Most Common UGC Marketing Metrics

Use these metrics to evaluate which ad formats perform best across awareness, engagement, and sales stages.

  • Engagement Rate = (Likes + Comments + Shares +  Saves) ÷ Impressions × 100
  • Click-Through Rate (CTR) = Clicks ÷ Impressions × 100
  • Repeat Purchase Rate = Returning Customers ÷ Total Customers × 100
  • Video Completion Rate = Videos Watched to End ÷ Total Video Views × 100
  • Conversion Rate = Conversions ÷ Total Visitors × 100

Once you have your goals set and your target audience clear, you can work on these 5 things to really boost your content strategy!

If you’re still looking for the right tools to help collect, manage, and repurpose user content, check out our 12 Best UGC Platforms to find the perfect solution for your brand.

Final Thoughts On UGC Ads

UGC Ads are every brand's best ally on social media and any other online marketing effort. 

Whether you are more into text, photos and videos, or detailed reviews, counting on content generated by real people as material for your campaigns is really going to make your brand stand out and connect on a deeper level with its audience. 

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FAQs
How Can Brands Encourage Customers to Create UGC?

Brands can inspire customers to create user-generated content by running UGC challenges, offering incentives like discounts or feature opportunities, and engaging with their community directly through comments or DMs. Encouraging participation through hashtags or contests can also help gather valuable content.

What Are the Benefits of Using UGC in Email Marketing?

UGC in email marketing increases engagement and can improve open and click-through rates. By incorporating real customer photos or testimonials, brands create more relatable and trustworthy content, boosting the chances that recipients will take action.

How Can Brands Measure the Success of UGC Ads?

The success of UGC ads can be measured through various KPIs such as engagement rate, click-through rate (CTR), conversion rate, and video completion rate. These metrics help track how well the content resonates with audiences, how much attention it garners, and how effectively it drives sales.

What Types of Products Benefit the Most from UGC Ads?

Products that rely on authenticity and real-world usage, like beauty, food, fashion, and tech products, tend to perform exceptionally well with UGC ads. For example, beauty and skincare products thrive on platforms like YouTube and Instagram, where users look for real results and tutorials.

What Are the Key Mistakes to Avoid When Using UGC Ads?

To maximize the effectiveness of UGC ads, brands should avoid over-editing content, ignoring creator consent for usage, or making the ad too product-focused. UGC is most successful when it feels natural and relatable, so excessive scripting, heavy production, or a lack of diversity can detract from its impact.

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