Is UGC Worth It? What Every Business Owner Should Know...

There’s a disconnect. According to a Stackla Survey, 92% of marketers think their content feels authentic. Yet 51% of consumers say less than half of brands get it right.

How much of your budget are you burning through before hitting the spot with your target audience?

Buyers should relate more to the marketing material you put out there. Emotions influence purchase choices. And humans are emotional beings. Can they identify with your brand at a personal level?

Turns out user-generated content (UGC) connects with customers in ways professional ads simply can’t - so much so that it's 28% more engaging!

Why?

It’s relatable and comes straight from real people. Content made by creators, not brands.

Wondering if it is worth your time and money?

Then read on to find out:

• Why UGC connects better than traditional marketing
• How UGC boosts trust, conversions, and engagement
• Proven examples of brands winning with UGC
• Cost-effective ways to create and use UGC
• Tips for starting your own successful UGC campaign

We will cover that, UGC statistics, and much, much more in this guide.

What is the Success Rate of UGC?

For one, it wins on engagements. Your audience is stopping, watching, and clicking through to the website. It's also more memorable compared to the ads from mainstream sources.

UGC also boosts conversions by 161% on e-commerce product pages and 56% of consumers are more likely to buy after seeing relatable or positive UGC photos.

Do people trust UGC?

When it’s real people sharing real experiences, trust naturally follows.

Millennials in particular trust this kind of content more than traditional media like email marketing. No surprise there given the familiarity, more personal feel, and good old power of word-of-mouth.

In fact, 84% of millennials and 70% of baby boomers say user-generated content on a company website influences their purchases.

You see a similar trend across industries:

• 70% of fashion customers rely on reviews from other buyers to shape their opinions and purchasing decisions.
• 63% of DIY shoppers in the home décor niche go for UGC over any other form of media. In this industry, engaging with UGC results in a 167% uptick in conversions and a 250% boost in Revenue Per Visitor (RPV).
• When you look at travel and tourism, the UGC market was valued at $184 million in 2022 and is projected to hit $750 million by 2032 according to Future Market Insights. With 70% of customers losing trust in travel agencies, businesses are using to rebuild confidence.
• Food and beverage businesses that include UGC in monthly emails see a 47% increase in customer reviews.

What makes UGC such a success?

1. One, it’s built on trust. People trust people more than brands.
2. Two, it delivers tangible results to businesses. Better ROAS, higher CTR, and lower CPM.
3. Third, it’s versatile. From IG reels and TikToks to user review videos on Facebook feeds to testimonials published on your website, it fits any platform.

How Powerful is UGC?

UGC packs a serious punch when it comes to marketing. Here's why it works!

1. Increased Conversions

Conversions are what you’re after. Turns out people give more credence to real opinions, not overly polished campaigns.

When your audience sees actual customers using your products, they feel more confident buying. It increases purchase likelihood by up to 79%.

These could be unboxing videos that show them exactly what to expect, or video testimonials that prove your product works IRL.

• UGC boosts web conversions by 29% compared to campaigns or websites without it.
• Adding UGC to an online purchase path can increase conversions by 10%.

2. Boost Engagement and Trust

With engagement, you’re not just after likes. Anybody can get those. You want real connections with your target audience.

UGC gets more conversions because it’s not a brand talking at people – it’s people talking to people. Consumers spend an average of 5.4 hours per day engaging with UGC. This includes feedback on new product releases from actual users, not paid promoters.

With UGC, you end up creating a community around your brand. That brings us to the next point.

3. Strengthen Brand Awareness

You’re in a heated market and want your brand to stand out from the competition. User content can spread the word.

How effective is UGC?

Fan videos on YouTube earn 10x more views than brand-created content. Brand engagement jumps by 28% when users see both professional and UGC videos together.

Such content is shared more because people relate to it. A single creator’s video can go viral overnight. Hashtag campaigns let customers amplify your brand for free.

Your brand becomes the one everyone’s talking about.

4. Provide Social Proof

User-generated content is packed with social proof.

Like real-life photos showing your product in action, or customer videos explaining why they love it. It’s basically a virtual word-of-mouth recommendation.

When potential buyers see others loving your product, they’re sold. And as they say, ‘seeing is believing’.

In the US, 63% of consumers seek UGC before buying, compared to 66% in the UK. Shoppers are also more likely to purchase clothing – 32% in the US and 39% in the UK – if it’s shown to another customer.

So ship your products to creators to use them and tell your story.

Is UGC Cost-Effective?

Yes. It’s the most budget-friendly content out there. It skips the expensive middlemen. No pricey agencies are needed. You can even get a UGC video for under 25 dollars.

This mode of marketing boosts ad performance with better engagement and lower CPMs. And it even slashes your cost per acquisition by up to 20%.

3 Ways To Use A UGC Asset (Videos or Photos)

UGC is super flexible and easy to repurpose. Try these three ideas!

1. UGC Ads - Paid Ads on Meta and TikTok

UGC ads on social media platforms will grab attention while feeling authentic, instead of salesy. You get higher engagement, lower ad costs, and, ultimately, more sales. Meta and TikTok audiences in particular love relatable, real-life content.

Meta Ads Manager tracks metrics like ROAS, CTR, and CPM. But that’s not our focus at Influee. We tell brands to create lots of ad creatives. Then A/B test them to see what works best.

It’s the easiest way to find top-performing ads. You’ll know exactly what clicks with each audience segment. Test, tweak, and watch your campaigns crush it.

2. Website Content

Bring UGC to your website too. Videos keep visitors on your site longer, boosting time-on-site metrics. Shoppable videos make it easy for customers to buy what they see. The immersive experience builds trust, leading to higher average order values.

Take True Classic’s story, for example. When they switched to Videowise for embedding UGC videos on their website, here were the results:

• Shoppers who engaged with the videos had a 13% higher conversion rate.
• They raked in over $500,000 in sales from video-engaged shoppers in 2023.

With Videowise’s fast-loading, adaptive video tech, True Classic added videos to over 700 product pages without sacrificing site speed. You can bring this to your website as well.

3. Organic Social Media

Regularly share UGC media on your profiles to keep your feed fresh. It has the welcome benefit of cutting your BOFU (Bottom-of-Funnel) costs by 13% on retargeting ads.

Here’s how it works:

• People see your UGC ad and click on your profile.
• Your profile is packed with the visual content of your products being used.
• Their interest is piqued, they learn about your product and gradually build trust.
• By the time they’re ready to buy, your retargeting ads seal the deal.

What kind of UGC should you share?

• How-to videos showcasing your products from the customer’s perspective
• Unboxing clips for new purchases.
• Customer testimonials of how the products impacted their lives.

The more active your social media, the more convincing your brand becomes.

How Many Brands Use UGC?

Over 86% of businesses are using user-generated content in their strategies and 42% of professional marketers have made it a core part of their operations. That’s for the value it brings.

Let’s look at one such business.

Case Study: Else Nutrition

Else Nutrition, a US-based brand selling ready-to-drink kids’ nutrition shakes, used UGC to get a competitive edge in the world of family nutrition.

How?

They turned to Influee and partnered with 20 creators in the #parenting niche to get started.

These creators made videos highlighting 8 unique ad angles:

• Testimonial clips that felt honest and relatable.
• Problem/solution stories every parent could connect with.
• “3 reasons why” videos that drove curiosity and clicks.

Else used Influee’s #MagicScript feature to put together scripts for each angle – saving tons of time. Post-production was also easy thanks to #MagicEdits.

In just 2 months, they created 93 videos that went everywhere:

• Paid Meta ads to target new customers.
• Organic social posts to build brand trust.
• Their website boosts conversion rates.
• Email marketing to re-engage their audience.

Ads with UGC performed better than any other creative, with a 20% lower CPA. In fact, the top-performing ads of the brand were Influee’s content, bringing a new customer to their website in droves.

Here is what Else Nutrition had to say:

“We’re extremely happy with the diversity and huge selection of quality creators. Ads featuring Influee’s content have 2x-ed viewing time of our usual videos from creative agencies.

“Influee’s process has made creator recruitment easier, cutting down on the complexity and time typically involved. Its selection of creators and customizable pricing (starts at €23 per video) has become a core tool for us.

Since discovering Influee, we now access hundreds of creators globally, use AI to develop scripts, and generate high-quality, cost-effective videos for our digital marketing efforts.”

With Influee, Else simplified creator recruitment, streamlined post-production, and optimized their ad strategy – all while staying under budget.

What’s stopping you from doing the same?

What are the Pros and Cons of UGC?

UGC has its perks but isn’t without challenges. Let’s break it down!

Pros

Here’s why brands love it:

• It’s authentic. People trust real customers over staged ads.
• It’s affordable. A single UGC video can cost as little as €20.
• It drives results. UGC lowers CPAs
• It boosts trust. Customers see real people loving your product.
• It’s versatile. UGC fits TikToks, ads, websites, and everything else.

Cons

With UGC, you trade control for authenticity:

• It’s inconsistent. Creator styles differ and not everyone’s a good match.
• It takes time. Faster than agencies, but you still need to plan for 7-10 days.
• It needs management. Choosing and coordinating creators takes effort.
• It’s unpredictable. Viral hits aren’t guaranteed.

How to Start UGC Marketing for Your Business

Start by picking one of the UGC creator platforms, where you will find vetted creators. That way, you can avoid the hassle of researching and tracking each of them down before even checking to see if they are the right fit.

1. Post a Detailed Content Brief

Creators will be relying on it, so the more specific you are, the better the results.

Here’s what to include:

• What’s your product? Describe it clearly and highlight its unique features.
• What type of content do you need? Popular UGC video examples include TikToks, unboxings, and tutorials. Indicate the kind of videos you need, and what you want the audience to take away
• What’s the tone? Casual? Professional? Quirky? Let creators know.
• Brand details: Include logo, colors, and your unique elements.

2. Creator Selection

Once your brief is live, creators will apply within 24 hours. Check their portfolios for past work and style. Go for creators whose style fits your brand’s personality, and agree on the UGC price.

After you pick your preferred creator, ship your product to them.

3. Content Delivery (Takes 7-10 days)

Influee’s streamlined process means you’ll have the content in around a week. You also get unlimited revisions to make sure the final result suits your vision.

4. Extra Edits

You can modify the content yourself, even without background tech skills. Use Influee’s #MagicEdits to polish the content and make it perfect for your campaign.

5. Launch Campaign

Now it’s time to put your UGC to work. Publish your ads, post on social media, and see what resonates with your audience by analyzing metrics like CTR, ROAS, and engagement. Double down on winning ads for maximum impact.

Tips for Success

Here are a few quick and actionable tips to make the most out of your user-generated content:

• A/B test everything. Ads, captions, and visuals. Test it all.
• Start small, then scale. Test with a few creators before going big.
• Collaborate long-term. Build lasting relationships with top-performing creators.
• Give detailed briefs. Clear instructions mean fewer revisions and better content.
• Target different audiences. Create varied content to appeal to multiple demographics.
• Use analytics wisely. Track performance and learn what works best.
• Diversify content types. Use UGC for Twitter (X), Instagram, TikToks, ads, websites, and more.

FAQ

How much should I pay for UGC?

UGC costs depend on your platform and creator rates. A raw UGC video may cost $30-$50, while fully edited videos range between $150-$250, with add-ons like scripts, usage rights, or hooks increasing the price. Platforms like Influee streamline the process, with bundled services with lower per-video costs. Learn more in this UGC Price Guide.

Do brands have legal ownership over UGC?

Ownership of the UGC you purchase depends on the collaboration terms. Most UGC creator platforms include content usage rights. Direct creator deals may cost extra for full rights.

How do I find good creators?

• Use vetted UGC creator platforms like Influee.
• Check portfolios to match creators with your brand profile.
• Pick creators with proven skills in your niche.

Can I negotiate with the creators?

Absolutely. Discuss fees, deadlines, and deliverables upfront. Keep it professional but flexible for the best results.

What if I don’t like the content?

Most platforms offer unlimited revisions until you’re satisfied. Feedback is important – guide creators to align with your vision.

Is UGC trustworthy??

Yes, UGC is trustworthy – because it feels real. Unlike branded ads, UGC comes from real people sharing their genuine experiences. Consumers see it as authentic, like a recommendation from a friend, not a scripted sales pitch. This makes buyers feel confident in their decisions.

Is UGC better than influencer marketing?

UGC feels more authentic and relatable to real customers' experiences than staged promotions. It’s also more cost-effective, due to its higher engagement and conversions without the hefty price tag of influencer campaigns.

We talk more about this here: UGC Creators vs Influencers.

Is UGC worth the investment?

Yes, especially for e-commerce brands. It’s cost-effective and delivers measurable results.