Did you ever notice an ad in social media which had a common person like you and me reviewing a product instead of those polished ads? 

That's probably a UGC ad you were looking at. And 79% of consumers say this type of content heavily influences their purchasing decisions.

The best part about UGC ads is that they don't feel like ads at all. They feel like recommendations from a friend. 

In this blog post we’ll be talking about what UGC ads are, why they work and what you need to know before investing in these marketing assets.

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What Are UGC Ads?

User-generated content (UGC) ads are those types of social media ads that turn customer content into paid advertising. 

Instead of polished studio shots or professional actors, these ads showcase authentic content created by actual users, customers, or fans of a brand. Think of it as word-of-mouth marketing or even as referrals. 

Your customers become your brand advocates.

UGC ads can be anything from a customer's unboxing video transformed into a Facebook ad to an Instagram Story featuring someone's genuine experience with your product. The key ingredient? Authenticity.

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Why Are UGC Ads So Effective?

According to recent research, 80% of consumers trust UGC more than traditional advertising. But why?

More Trustworthy: 

When was the last time you made a purchase without checking reviews first? Never, right? 

We naturally trust other consumers more than brands talking about themselves. UGC ads tap into this trust factor by showcasing experiences from actual consumers.

Engagement That Actually Engages:

Ads featuring UGC have a 4 times higher click-through rate than standard ads. Why? 

Because they're relatable. When you see someone just like you using a product in their everyday life, it resonates more than a perfectly recorded commercial.

Budget-Friendly:

UGC ads can reduce cost-per-click by up to 50%. Instead of spending huge money on professional commercial ads, you're leveraging content your customers are already creating. This results in more purchases. 

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Types of UGC Ads

Let's break down the different types of UGC ads:

Customer Reviews & Testimonials

These are the most common types of UGC ads. Real customers sharing their honest opinions, often in video format, make the best YouTube, Facebook or Instagram ads.

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Unboxing & Product Demos

The rise of TikTok and Instagram Reels has made these particularly popular. There's something oddly satisfying about watching someone unbox and try a product for the first time.

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Before & After Comparisons

Best for beauty, fitness, or home improvement brands. These types are the best when a customer is ready to purchase but is not sure which product to choose.

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All these types can be created by an influencer or a common consumer.

How to Source UGC for Ads

Getting great UGC doesn't happen by accident. Here's how to encourage it:

1. Create branded hashtags and run contests

2. Partner with micro-influencers who align with your brand values

3. Set up a simple system for customers to submit their content

4. Use platforms like Adsether to help generate and optimize UGC-style content

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Always remember to get permission before using someone's content in your ads. It's a legal requirement.

Another way to create UGC Ads is with the help of AI. We have a detailed blog post on “How to create UGC Ads with AI”. 

If you’re new to business and don’t have enough customer reviews, then creating UGC ads with AI is the best alternative. Make sure to check out the post linked above.

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Best Practices for Running UGC Ads

Some of the things you need to keep in mind while creating UGC ads:

Quality that looks natural: 

Besides having good lighting and clear audio, genuine reactions and unscripted moments are what makes these ads more attractive.

Platform Optimization

Make sure the videos meet the video requirements for each platform. For example, on Instagram 15 to 30 second vertical videos work the best while for YouTube, longer videos are better. 

Other Must-Haves

• Always add subtitles (75% of people watches videos on mute)
• Include clear calls-to-action
• Test different versions of your ads
• Mobile-optimize everything

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Conclusion

It's high time you start including UGC ads as they are becoming increasingly important in the marketing mix. With consumers craving authenticity more than ever, brands that master the art of UGC advertising will have a significant advantage.If you’re looking for an alternative to creating UGC ads getting you similar results then head over to this post or book a call here.