How To Use UGC in Paid Social Ads

User-generated content (UGC) is changing the way brands run social media ads. Why? Because people trust content from other people more than they trust traditional ads. Here’s what you need to know:

• 88% of consumers trust recommendations from peers over brand-created ads.

• UGC ads can boost engagement by 28% and increase conversions by up to 10%.

• It’s cost-effective and feels more authentic, making it a smart choice for platforms like Instagram, TikTok, and Facebook.

Quick Steps to Use UGC in Ads:

1. Find Great UGC: Look for customer reviews, social posts, or videos that feel real and relatable.

2. Get Permission: Always ask for explicit consent before using anyone’s content.

3. Match the Platform: Use Instagram for visuals, TikTok for short videos, and Facebook for detailed targeting.

4. Track Results: Measure engagement, clicks, and conversions to see what works best.

UGC isn’t just a trend - it’s a proven way to grow trust and increase sales. Let’s dive into how to make it work for your ads.

What Is UGC and Why It Works for Paid Ads

What UGC Means for Advertising

UGC, or user-generated content, includes photos, videos, reviews, testimonials, and social media posts created by real customers rather than by brands themselves. The main difference between UGC and branded content lies in who creates it and why. UGC is organically produced by customers, without any direct input or guidance from the brand. On the other hand, branded content is carefully planned, approved, and executed by a company’s marketing team. Think of a customer posting an Instagram story about their new sneakers or creating a TikTok video reviewing a skincare product - that’s UGC in action.

"User-generated content (UGC) refers to any form of content, such as videos, reviews, or images, created by users rather than by app marketers." – Adjust

What sets UGC apart is its authenticity. Unlike polished, professional branded content designed to sell, UGC reflects genuine experiences and peer-to-peer perspectives. This raw and relatable quality makes UGC stand out and lays the groundwork for its effectiveness in paid social advertising.

Benefits of UGC in Paid Social Ads

UGC brings real, measurable benefits to paid advertising campaigns, with trust and credibility being its cornerstone. A whopping 92% of consumers trust content created by other users more than traditional advertising, and 44% say they trust UGC above all other types of content.

This trust translates directly into results. UGC can boost engagement by up to 28%, increase web conversion rates by 29%, and improve overall conversions by 10% when integrated into the buying journey . The reason? People today are highly skeptical of overly polished ads and are drawn to content that feels real and relatable.

"UGC gives customers a unique opportunity to participate in a brand's growth instead of being a spectator. This influences brand loyalty and affinity in a big way because people thrive off being part of something greater than themselves, and creating UGC allows them to be part of a brand's community." – Hootsuite

It’s also cost-effective. By leveraging authentic peer experiences, UGC provides a more budget-friendly alternative to traditional media production. And it’s memorable - 31% of consumers say UGC ads stick with them more than traditional ads. For example, branded UGC content is recalled by 86% of users compared to 65% for pre-roll ads.

Brands are already reaping the rewards. ASOS’s #AsSeenOnMe hashtag campaign has seamlessly transitioned into TikTok ads, achieving top 30% click-through rates. Likewise, HelloFresh relies on creator-driven content, with many of its ads ranking in the top 50% for click-through performance.

Beyond the numbers, UGC builds emotional connections by highlighting the real-life impact of products and services. This connection fosters communities of loyal brand advocates and provides powerful social proof. In fact, 93% of consumers say UGC influences their buying decisions more than traditional ads, and they’re 9.8 times more likely to be swayed by UGC than by influencer posts. These stats make it clear: integrating UGC into your paid campaigns on platforms like Instagram, TikTok, and Facebook can make a world of difference.

How to Find and Source Quality UGC for Paid Campaigns

How to Identify High-Performing UGC

When it comes to paid ads, user-generated content (UGC) needs to check three key boxes: it should feel genuine, grab attention, and look great. To find UGC that performs well, focus on metrics like engagement and technical quality.

Look for content that sparks real interaction - comments, shares, and reactions that show people are genuinely connecting with it. The best-performing UGC often tells a story, whether it’s a dramatic before-and-after, a product in action, or an emotional moment that resonates.

Here’s a striking statistic: customer-created photos drive conversion rates 5 times higher than professional ones - 85% versus 17% for brand-created visuals. This underscores why authenticity is so critical when choosing UGC for your campaigns.

It’s also essential that the content aligns with your brand’s identity. UGC works best when it naturally fits your messaging, rather than feeling staged or disconnected. Creators who genuinely love your product will deliver more convincing testimonials than those who don’t share your enthusiasm.

From a technical perspective, quality still matters. While UGC doesn’t need a professional touch, it should be clear, well-lit, and visually appealing. Blurry photos or videos with poor sound quality can undermine even the most authentic content.

Best Methods for Sourcing UGC

Top brands use a mix of strategies to keep high-quality UGC flowing. One tried-and-true method is running branded hashtag campaigns. These not only generate content but also build a sense of community around your brand. Another effective approach is reaching out directly to customers who are already sharing organic posts about your products.

Micro and nano-influencers have become valuable sources of UGC as well. These creators often have smaller but highly engaged audiences who trust their recommendations, making their content particularly impactful.

Tools like Vidpop can simplify the process. These platforms connect brands with UGC creators who excel at producing content that feels authentic. With searchable databases of creators, finding the right fit for your campaign becomes much easier.

Incentives also go a long way. Loyalty programs and rewards like exclusive discounts, early product access, or social media features can inspire customers to create and share high-quality content.

Live events and experiential marketing are natural UGC goldmines. When people have memorable experiences with your brand, they’re more likely to share those moments online. Hosting events designed to encourage social sharing can amplify this effect.

Don’t forget about the content you already have. Comments on your social posts, product reviews, and even customer service interactions can be turned into UGC - just make sure to get proper permissions first.

A great example of UGC success is Nutrisense. By consistently sharing UGC paired with strategic insights, they grew their social media following by 496%, jumping from 25,000 to over 130,000 followers. Engagement on their social channels also increased by 45% during this time.

Once you’ve gathered the UGC you need, securing proper permissions is the next critical step.

Getting Permissions and Content Rights

Using UGC without permission isn’t just risky - it can lead to lawsuits and tarnish your brand’s reputation. Always get explicit written consent before using someone’s content in paid campaigns, even if they’ve tagged your brand or used your hashtag.

Content creators retain ownership of their work, so you need their approval to use it commercially. Be upfront in your permission request about how you plan to use the content - include details like the duration, platforms, and whether you’ll be editing it. Clear communication now helps avoid misunderstandings later.

Compensation and credit are also important to address. While some creators are happy to have their content featured for free, others may expect payment or other perks. And don’t forget: the FTC requires disclosure of any relationships with creators, whether through financial compensation or freebies.

Keep thorough records of all permissions, agreements, and communications. This documentation protects both you and the creator if questions come up later. Using standardized permission forms or contracts can make this process smoother.

The legal side of UGC can get complicated. For instance, in 2020, photographer Jack Schroeder and model Britni Sumida sued Volvo for using their content in an Instagram story without permission. Cases like this highlight why legal compliance is non-negotiable.

Finally, don’t overlook content moderation. Set clear guidelines for the type of UGC that aligns with your brand and review all content before it goes live. This ensures you avoid any material that could harm your reputation.

If you’re unsure about the legal aspects, consulting an expert in intellectual property or advertising law is always a smart move.

The Recipe for the Perfect UGC Ad (Facebook Ads & TikTok Ads)

Adding UGC to Paid Social Media Campaigns

User-generated content (UGC) has a proven track record of building trust and boosting engagement. When incorporated into paid social media campaigns, it can work wonders. The key is to secure high-quality UGC and adapt it to the unique ad formats and audience behaviors of each platform. Done right, UGC-powered ads can deliver up to 4x higher click-through rates compared to traditional ads.

Using UGC in Instagram Ads

Instagram thrives on visuals, making it a prime platform for showcasing genuine customer experiences. The platform offers several ad formats perfect for UGC campaigns, each tailored to specific goals.

• Feed Ads: Photos of customers using your products in real-world scenarios are highly effective. For example, images of people holding or interacting with your product can increase purchase intent by 70% on Instagram. Stick to high-quality, visually appealing images that align with Instagram's standards.

• Instagram Stories: These full-screen, temporary ads are ideal for UGC videos. Their vertical format feels natural for mobile users, and interactive features like polls or swipe-up links can drive even more engagement.

• Reels Ads: Short, engaging videos perform exceptionally well on Instagram Reels, with video ads receiving up to 612% more likes and comments than images. Use customer-generated clips, like unboxing videos or product demos, to create native, entertaining content.

• Carousel Ads: This format allows you to feature multiple UGC pieces in one ad, making it great for showcasing a variety of customer experiences or before-and-after transformations.

For Instagram ads, technical details matter. Since 85% of users watch videos without sound, adding captions is a must. Geo-tags can also expand your reach in specific regions.

Take Hurom’s 2023 campaign as an example. By shifting from sales-driven ads to UGC focused on health and wellness, they saw a 65% drop in CPA and a 2.5x increase in ROAS. Partnering with inBeat, they reduced customer acquisition costs by 36%.

Adding UGC to TikTok Ads

TikTok’s unique culture and algorithm make it the perfect playground for authentic, relatable content. UGC on TikTok consistently outperforms brand-directed videos, delivering a 22% higher engagement score.

• Spark Ads: These ads amplify organic posts, allowing you to boost high-performing UGC while keeping its authentic vibe intact.

• In-Feed Ads: These appear in users’ For You feeds and are great for customer testimonials, product demos, or even creative challenge videos.

To maximize TikTok ads, grab attention within the first few seconds using bold visuals or engaging questions. TikTok’s Creative Centre can help you identify trending sounds and hashtags to sync your content with the platform’s vibe, creating a rhythmic and engaging experience.

TikTok’s audience skews younger, with 44.1% of users aged 20–39. Notably, 37% of TikTok users rank in the top third of spenders and are twice as likely to recommend products discovered on TikTok versus other platforms.

Some standout UGC campaigns on TikTok include Chipotle’s #GuacDance challenge, which inspired 250,000 video submissions and reached 430 million video plays. Similarly, Nike’s #MagicBoots campaign encouraged soccer fans to showcase their skills, racking up over 2 million likes and thousands of user-generated videos.

Using UGC in Facebook Ads

Facebook’s ad platform offers powerful targeting tools and flexible formats, making it a strong contender for UGC campaigns. Its analytics capabilities allow you to zero in on the right audience and showcase authentic customer stories effectively.

• Single Image and Video Ads: These formats are perfect for customer testimonials, reviews, or product demos. Pair them with concise captions to highlight the story.

• Carousel Ads: Use this format to display multiple customer photos or reviews. It’s ideal for emphasizing diverse experiences or showcasing product variations.

• Collection Ads: These combine UGC with product catalogs, letting users browse and purchase directly from the ad.

Statistics back up the power of UGC: 92% of consumers trust UGC more than brand-created ads, and 79% say it influences their buying decisions. UGC ads can also slash cost-per-click (CPC) by 50%.

For Facebook, vertical or square formats work best for mobile viewers. Adding text overlays can help convey key messages quickly, especially since users tend to scroll fast. Facebook’s Lookalike Audiences feature is another game-changer, enabling you to target users similar to those who’ve already engaged with your UGC.

Big names like Airbnb, GoPro, Glossier, and Gymshark have all tapped into UGC for their Facebook campaigns, using real customer stories to connect with their audience.

"When a brand uses UGC in its Facebook ads, it creates a genuine and relatable experience for potential buyers. Instead of just telling people how great a product is, brands let real customers do the talking, and this makes all the difference." - Tanmay Ratnaparkhe, Co-founder of Predis.ai

Testing and Optimization

A/B testing is essential when integrating UGC into your campaigns. Run parallel ads - one with UGC and one with brand-created content - to see which resonates more with your audience. Keep an eye on metrics like engagement, clicks, and conversions, and refresh your content often to prevent ad fatigue. By continuously refining your strategy, you can make the most of UGC across all platforms.

Measuring and Improving UGC Ad Performance

Running UGC ads is just the beginning. To truly get the most out of them, you need to track performance metrics that can help you refine your approach and boost your ROI. Without keeping an eye on the numbers, you might miss out on opportunities to improve your campaigns.

Key Metrics for UGC Ad Campaigns

To make the most of your UGC campaigns, focus on metrics that directly tie to your business goals. Here are the key performance indicators to watch:

• Awareness Metrics: Keep track of how many unique people see your ads (reach) and how often your ads are displayed (impressions). Metrics like profile visits and follower growth can also indicate whether your UGC is successfully introducing your brand to new audiences.

• Engagement Metrics: Engagement measures how well your content connects with viewers. Social campaigns with UGC often see a 50% increase in engagement. You can calculate this by dividing total interactions by impressions. Metrics like click-through rate (CTR) and hashtag usage can also show how your audience is interacting with your content.

• Conversion Metrics: These metrics reveal how effective your ads are at driving actions. Pay attention to your conversion rate (the percentage of people who take a desired action), Return on Ad Spend (ROAS), and cost per conversion to measure your ad spend efficiency.

• Customer Retention Metrics: Look at metrics like repeat purchase rates and returning visitors to see if your UGC campaigns are helping turn customers into loyal buyers. UGC has been shown to increase email click-through rates by 73%, making it a valuable tool for nurturing repeat customers.

Tracking these metrics can lead to impressive results. For instance, Hurom shifted its messaging from discounts to health-focused UGC, reducing its cost per acquisition (CPA) by 36% and increasing ROAS by 2.5x in just a year. Similarly, NielsenIQ optimized its UGC strategy, cutting CPAs by 75% while driving over 100,000 monthly app installs.

Use these insights to guide A/B testing and refine your creative strategies for even better results.

A/B Testing and Improving UGC Creatives

A/B testing is a powerful way to remove guesswork from your UGC strategy. Research shows that 58% of companies use A/B testing to improve paid ad performance. Even Bing reported a 10% to 25% revenue boost per search through systematic testing.

Start each test with a clear goal - whether it’s improving CTR, engagement, or conversions - and focus on changing just one element at a time.

• Visual Content Testing: Test different types of visuals, like product-focused images versus lifestyle shots. For example, inBeat Agency found that TikTok audiences preferred short-form content featuring user testimonials when testing for Prose.

• Copywriting Variations: Experiment with different tones, hooks, and messaging styles. Thriva, a brand offering at-home health tests, discovered that the line "Ever wish you were more proactive with your health?" performed best during testing.

• Call-to-Action Testing: Try out different CTA designs, placements, and wording. For instance, inBeat Agency tested discount-based CTAs for Hopper and saw encouraging results.

• Ad Format Comparisons: Compare formats like carousel ads versus single-image ads or Stories placements versus Feed placements to see what resonates most with your audience.

• Creator Testing: Since each creator has a unique style, testing UGC from different creators can help identify who connects best with your target market.

Before investing in paid A/B tests, review the performance of your organic UGC. This can provide valuable insights into what’s already working, saving you time and money as you scale your campaigns.

Testing against traditional branded ads can also help you better understand UGC’s strengths.

Comparing UGC Ads vs. Branded Ads

When deciding between UGC and branded content, it’s all about your campaign goals and audience preferences. Here’s a quick comparison to help you weigh the options:

For example, Nimble Activewear tested emails with and without UGC snippets and saw a 16% increase in average revenue per recipient. Data also shows that UGC viewers convert 161% more than those who don’t.

While branded ads are still valuable - especially when strict brand consistency is needed - many successful brands use a mix of UGC and branded content. This hybrid approach combines the trust and relatability of UGC with the polished feel of branded ads.

Interestingly, brands that used AI to analyze UGC reported a 30% increase in ROI. The key is to know your audience, experiment with different strategies, and scale what works best for your goals.

Legal and Ethical Rules When Using UGC

When incorporating user-generated content (UGC) into paid ads, following legal and ethical guidelines isn't optional - it's essential. To avoid running into copyright issues, brands must secure explicit consent from creators before using their content in advertisements. Skipping this step could lead to hefty fines ranging from $750 to $150,000 per infringement.

Even though public posts might seem fair game, they aren't. Explicit, written consent is necessary for UGC in paid ads. This agreement should clearly outline details like the duration of use, where the content will appear, whether it can be used in ads, and whether edits are allowed. For campaigns, it's wise to secure rights that extend at least one month beyond the campaign's end. Industry norms often suggest agreements lasting 6–12 months, with renewal fees if you want to extend usage.

The cost of usage rights depends on factors like the creator's reach, the type of content, and the length of the agreement. For example, starting with a base rate of $212, you might pay between $42.40 and $63.60 for three-month usage in paid ads or between $63.60 and $106 for a 12-month agreement.

Following Platform Guidelines

Once you've secured the necessary legal rights and compensated creators fairly, the next step is to align with the advertising policies of individual platforms like Instagram, TikTok, and Facebook. Each platform has its own rules regarding UGC, and non-compliance could lead to account suspensions or even legal trouble. Transparency is critical: make it clear in your ads that the content comes from real customers, and avoid altering the creator's original message.

If the UGC features minors, always obtain parental consent. Additionally, be upfront with creators about how their content will be repurposed - whether it’s for ads, social media, or other marketing channels - and where it will appear.

Protecting Brand Safety and Content Quality

Legal permissions are just one part of the equation. Safeguarding your brand's reputation is equally important. Moderating content is a must to ensure that UGC aligns with your brand values and doesn’t include anything inappropriate. Combining automated tools with human oversight can help maintain high standards. Clear content guidelines and regular audits will ensure compliance with copyright laws and help you identify and remove problematic material as needed.

Keep thorough records of all permissions, agreements, and communications related to UGC usage. These documents can be invaluable if legal disputes arise. With 87% of brands using UGC to create relatable content, proper documentation is more crucial than ever.

Educating creators and users about copyright rules and best practices can also help reduce infringement risks. Considering that 79% of consumers say UGC influences their purchasing decisions, getting these legal and ethical aspects right is vital for building trust and driving results.

"Paid ad campaigns need new content every two months, so it's unlikely it'll be used for longer than that." – Paula Uccelli, Project Manager at VeraContent

This insight underscores why many brands prefer shorter-term usage agreements. These agreements are often more cost-effective while ensuring a steady stream of fresh content for successful paid ad campaigns.

Conclusion: Getting the Most from UGC in Paid Social Ads

User-generated content (UGC) has reshaped the way brands approach paid social advertising, offering a level of authenticity that traditional branded content often struggles to achieve. The stats back it up: UGC not only boosts engagement but also strengthens trust and delivers clear returns on investment across social platforms.

To make the most of UGC, start with a clear plan. Define your campaign goals, focus on platforms where your audience is active, and use concise, descriptive hashtags to increase visibility. This structured approach sets the stage for gathering impactful content.

Carefully curate and moderate UGC to ensure it aligns with your brand's values and maintains a consistent quality. Always secure explicit permissions from creators to avoid any legal complications.

Big brands have already shown how effective UGC can be. Campaigns like Coca-Cola's #ShareACoke and GoPro's #BeAHero have created meaningful connections and sparked genuine engagement with their audiences.

Beyond campaigns, successful brands foster a sense of community by encouraging followers to share, interact, and support one another. They also stay transparent about how they source and use UGC, which helps maintain trust and authenticity.

For a more streamlined approach, tools like Vidpop can be a game-changer. Vidpop connects brands with UGC creators and offers features like portfolio management, payment processing, and campaign analytics - all in one place.

Incorporating UGC into paid social ads isn’t just a trend - it’s a proven way to build trust, spark engagement, and achieve measurable success.

FAQs

How can I make sure the UGC I use in paid social ads reflects my brand's identity and message?

To make sure the UGC featured in your paid social ads reflects your brand's identity, start by establishing clear content guidelines. These should cover your brand's tone, messaging, and visual style, giving creators a solid understanding of what you expect.

Once you have your guidelines in place, take the time to thoroughly review all UGC before incorporating it into your campaigns. Focus on content that aligns with your brand’s voice and strikes a chord with your target audience. Consistency matters, so aim for a unified look and feel across all your ads.

These steps can help you craft ads that feel genuine and engaging, while also reinforcing your brand identity and building a stronger connection with your audience.

What’s the best way to get permission to use UGC in paid social media ads?

To use User-Generated Content (UGC) in paid social media ads in a legal and ethical way, you need to get explicit permission from the creator. Reach out to them directly - whether through comments, direct messages, or email - and clearly explain how you intend to use their content. Be specific about details like the platform, campaign duration, and scope.

Whenever you can, secure written consent through a formal agreement or licensing contract. This not only ensures both parties are on the same page but also helps protect you from any legal complications. Being transparent with creators doesn’t just safeguard your campaign - it also builds trust and enhances your brand's image.

How can I evaluate the performance of UGC in my social media ads compared to traditional branded content?

To evaluate how well user-generated content (UGC) performs in your social media ads, pay close attention to metrics like engagement rates, click-through rates (CTR), and conversion rates. UGC has a track record of outperforming traditional branded content by driving higher engagement and building trust - all while keeping costs down. For instance, UGC often delivers better CTRs and lowers cost-per-click, making it a smart and budget-friendly approach.

What makes UGC stand out is its ability to connect with audiences on a more personal level. It feels genuine and relatable, which helps foster trust. By comparing these performance metrics against those of your branded content campaigns, you’ll get a clear picture of how much value UGC can bring to your social media advertising strategy.

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• 5 Common UGC Creator Mistakes and How to Avoid Them

• 6 Best Practices for Creating High-Converting UGC

• How UGC Builds Brand Awareness