UGC Ads: How to Implement, Examples & Advantages

Did you know? 92% of the users trust authentic user-generated content (UGC) more than traditional ads. 

Businesses have been using high-quality UGC ads to improve their reach, ensure that the ad reaches a broader audience, and improve its impact on its users. 

UGC is dominating the digital market. The reason for this is a drastic change in user behavior. Users look up to people, not brands, to find inspiration for products they can introduce into their lives. 

Do you wish to run the best UGC Ads for your next marketing campaign? Say no more!

Leveraging UGC while displaying ads on social media is a powerful marketing tool, enabling brands to derive all of this and more. 

Make your way to the end of this blog to learn how and why you should utilize UGC in your Facebook, Instagram & TikTok ads (the three most influential social media platforms).

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What are UGC Ads?

UGC ads feature content created by users rather than the brand itself. This content can take any form, including customer reviews, social media posts, photos, videos, and other content consumers create that highlights their experiences with a brand or product.

UGC ads are popular on social media platforms such as Instagram, TikTok, and YouTube, where users can create and share content with their followers. Brands can use high-quality UGC ads to reach new audiences and encourage user engagement while showcasing their products or services in a more authentic and relatable way.

Explore Also – What is UGC Video

Things to Consider Before Apply UGC in Your Ads:

1. Legal and Ethical Considerations:

• Permissions and Rights:
  • Ensure you have explicit permission from the content creator to use their material. This includes obtaining written consent, especially for commercial purposes.
  • Clarify the scope of usage: where, when, and how long you can use the content.
  • Address copyright and intellectual property rights.
• Privacy:
  • Respect the privacy of individuals featured in the UGC.
  • Be mindful of sensitive information or potentially embarrassing content.
• Authenticity and Transparency:
  • Avoid manipulating or misrepresenting UGC.
  • Be transparent about how the content was sourced and used.
  • Avoid using content that could be considered deceptive.
• Terms of Service:
  • If gathering UGC from social media platforms, be sure that your usage of that content does not violate the platforms terms of service.

2. Content Quality and Relevance:

• Brand Alignment:
  • Ensure the UGC aligns with your brand’s values, messaging, and target audience.
  • Choose content that reinforces your brand identity and resonates with your customers.
• Content Quality:
  • Evaluate the quality of the UGC: is it visually appealing, well-produced, and engaging?
  • Consider factors like lighting, sound, and overall production value.
  • Make sure the content is high resolution, and properly formatted for the platforms you will be using.
• Relevance to Campaign Goals:
  • Select UGC that supports your specific advertising objectives (e.g., brand awareness, lead generation, sales).
  • Ensure the content is relevant to the product or service being advertised.
• Target Audience:
  • Does the UGC resonate with your target demographic?

3. Practical Implementation:

• Content Sourcing and Curation:
  • Develop a strategy for sourcing and curating UGC.
  • Consider using hashtags, contests, or social media monitoring tools.
  • Establish a process for reviewing and approving UGC.
• Content Moderation:
  • Implement a system for moderating UGC to prevent the use of inappropriate or offensive content.
  • Be prepared to remove or edit content that violates your guidelines.
• Platform Suitability:
  • Adapt UGC to the specific requirements and formats of different advertising platforms.
  • Optimize content for mobile viewing.
• Performance Measurement:
  • Track the performance of UGC-based ads to assess their effectiveness.
  • Monitor metrics like engagement, click-through rates, and conversions.
  • A/B test different forms of UGC.
• Budget:
  • Consider if you will be paying for the usage of the UGC, and factor that into your advertising budget.

4. Potential Risks:

• Negative Feedback:
  • Be prepared for the possibility of negative feedback or criticism related to the UGC.
  • Have a plan for addressing negative comments and managing potential crises.
• Unpredictability:
  • UGC can be unpredictable, and you may have less control over the messaging compared to professionally produced content.
  • It is possible for a user to change their opinion of your brand after the content is used.
• Authenticity Backlash:
  • If the UGC seems inauthentic, or overly produced, it can cause a backlash from your target audience.

Best Practices for Implementing UGC in Ads

1. Secure Clear and Comprehensive Permissions:

• Written Consent is Essential:
  • Don’t rely on verbal agreements. Get explicit, written permission from the content creator.
  • Specify how, where, and for how long you’ll use the content.
• Address Copyright and Usage Rights:
  • Clarify ownership and usage rights to avoid legal issues.  
  • If using music, images, or other copyrighted material within the UGC, ensure you have the necessary licenses.
• Detailed Agreements:
  • Outline the terms of use, including compensation (if any), editing rights, and the platforms where the content will be displayed.  
  • Consider a contract or release form.

2. Curate High-Quality and Relevant UGC:

• Brand Alignment:
  • Ensure the UGC reflects your brand values and resonates with your target audience.
  • Choose content that enhances your brand image.
• Visual and Audio Quality:
  • Prioritize high-resolution images and clear audio.
  • Avoid blurry, poorly lit, or noisy content.
• Authenticity and Engagement:
  • Seek genuine and engaging content that feels natural.
  • Content that shows real people enjoying your product or service is highly effective.
• Content Diversity:
  • Use a variety of content. This includes different demographics, and different use cases for your product.

3. Adapt UGC for Different Platforms:

• Platform-Specific Formats:
  • Optimize UGC for each platform’s requirements (e.g., aspect ratios, video lengths).  
  • Consider using vertical video for mobile-first platforms like TikTok and Instagram Reels.
• Tailored Messaging:
  • Adjust the accompanying text and captions to suit the platform and audience.
  • Use relevant hashtags and keywords.
• Accessibility:
  • Add captions to video content.
  • Use alt text for images.

4. Integrate UGC Seamlessly into Your Ad Campaigns:

• Strategic Placement:
  • Use UGC in various stages of the customer journey, from awareness to conversion.
  • Incorporate UGC into display ads, social media ads, and video ads.
• Storytelling:
  • Use UGC to tell compelling stories about your brand and products.  
  • Showcase customer experiences and testimonials.
• Call to Action:
  • Include clear and concise calls to action that encourage engagement.  
  • Direct viewers to your website, product page, or social media profile.

5. Monitor and Measure Performance:

• Key Performance Indicators (KPIs):
  • Track metrics like engagement, click-through rates, conversions, and return on ad spend (ROAS).  
  • Monitor social media metrics like likes, shares, comments, and follower growth.  
• A/B Testing:
  • Experiment with different types of UGC to determine what resonates best with your audience.
  • Test different captions, formats, and placements.
• Feedback and Optimization:
  • Analyze performance data and gather feedback to optimize your UGC campaigns.  
  • Pay attention to comments on the ads.
• Social Listening:
  • Monitor social media for mentions of your brand, and reactions to your ads.

6. Build Relationships with Content Creators:

• Engagement and Appreciation:
  • Acknowledge and appreciate the creators whose content you use.
  • Build relationships with influencers and loyal customers.
• Collaboration:
  • Consider collaborating with creators on future campaigns.
  • Offer incentives or compensation for their contributions.
• Community Building:
  • Encourage users to create more content.
  • Create a hashtag for your brand.

7. Maintain Transparency and Authenticity:

• Disclose Sponsorships:
  • If you’re paying creators for their content, disclose the sponsorship clearly.
  • Follow advertising guidelines and regulations.
• Avoid Misrepresentation:
  • Don’t manipulate or fabricate UGC.
  • Present content in its original context.
• Address Negative Feedback:
  • Create a plan for managing negative feedback.
  • Respond to comments in a professional manner.

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Types of UGC Ads:

Let’s break down the categories of UGC ads I described earlier, providing more detail and examples:

1. Based on Content Format:

• UGC Video Ads:
  • These are incredibly dynamic and engaging. They allow viewers to see products in action and hear authentic experiences.
  • Examples:
    • A customer filming a quick review of a new skincare product, showing its texture and how it applies.
    • An unboxing video where a user enthusiastically opens a tech gadget and demonstrates its features.
    • A travel vlog-style video showcasing a user’s experience with a tour company.
    • A customer showing how they use a cooking product to prepare a meal.
• Image UGC Ads:
  • Visuals are powerful and can quickly convey a message.
  • Examples:
    • A clothing brand featuring photos of customers wearing their apparel in different settings.
    • A restaurant displaying photos of customers enjoying their meals.
    • A photo of a customer holding a product, and smiling.
    • Before and after photos showing use of a weight loss product.
• Text-Based UGC Ads:
  • These ads leverage the power of social proof.
  • Examples:
    • Displaying snippets of positive reviews from customers on a website or in a social media ad.
    • Highlighting a particularly insightful comment from a social media post.
    • A quote from a review overlayed onto an image or video.

2. Based on Content Source:

• Customer-Generated Content:
  • This is the gold standard for authenticity.
  • Examples:
    • A user posting a video of themselves using a fitness app and sharing their progress.
    • A customer tagging a brand in a photo of their pet wearing a product.
    • A person posting a review on a product page.
• Employee-Generated Content:
  • This can build trust and show the human side of a brand.
  • Examples:
    • Employees sharing behind-the-scenes glimpses of the company culture.
    • Employees demonstrating how a product works.
    • Employees sharing their favorite products.
• Brand Advocate Content:
  • These individuals are passionate about a brand and their endorsements carry significant weight.
  • Examples:
    • A micro-influencer creating a series of posts featuring a brand’s products.
    • A loyal customer sharing their positive experiences with a brand on social media.
    • A customer creating a tutorial video on how to use a product.

3. Based on Platform Usage:

• Social Media UGC Ads:
  • These ads take advantage of the social nature of platforms like Instagram, TikTok, and Facebook.
  • Examples:
    • A brand running a hashtag campaign and featuring the best user-submitted content in their ads.
    • Using TikTok’s Spark Ads to amplify organic user-generated videos.
    • Reposting user stories to the brands story.
• Review Platform UGC Ads:
  • These ads showcase customer feedback from trusted review sites.
  • Examples:
    • Displaying a star rating and a quote from a positive Google Review in a display ad.
    • Featuring a selection of customer reviews on a product page.
    • Embedding yelp reviews into a website.

UGC Ads Examples That Made a Difference

Coca-Cola’s “Share a Coke” campaign

In this campaign, Coca-Cola encouraged customers to buy a Coke with a friend’s name on it and share a picture on social media using the hashtag #ShareACoke. The high-quality UGC Ads campaign aimed to create a personal connection between customers and the brand and drive engagement and sharing.

Airbnb’s “Night At” contest

Airbnb invited users to share photos or videos of their dream Airbnb stay on social media using the hashtag #NightAt. The most creative and interesting entries were selected to win a free night’s stay at the property of their choice. This UGC Ad campaign not only encouraged UGC but also generated brand awareness and excitement.

Nike’s “Play For The World” campaign

Nike encouraged customers to share their athletic achievements on social media using the hashtag #PlayForTheWorld. The brand then curated and shared the most inspiring stories, giving users recognition and a sense of community.

McDonald’s “#McDStories” campaign

McDonald’s invited customers to share their positive experiences and memories at the restaurant on social media using the hashtag #McDStories. This campaign aimed to showcase the emotional connection between customers and the brand and combat negative perceptions of fast food.

GoPro’s “Be A Hero” Campaign

GoPro encouraged customers to share their adventurous and action-packed videos captured with a GoPro camera on social media using the hashtag #GoPro. The brand then featured the most exciting and inspiring content on its website and social media platforms like TikTok, Instagram, and Facebook, creating a sense of community and showcasing the capabilities of its products.

Hershey’s “Spread the Happy” campaign

Hershey’s invited customers to share their moments of joy and happiness on social media using the hashtag #SpreadTheHappy. The brand then featured the most touching and heartwarming content on its website and social networks, emphasizing the positive emotions associated with its products.

Check Also – UGC Video Examples

What Are The Advantages Of Integrating UGC Into Ads? 

UGC is boundlessly winning audience attention. People are eager to know and understand the experiences of other brand users. 

Moreover, with Facebook and Instagram being platforms with the maximum number of social media users, building trust and user engagement becomes all the more critical. Here’s how it helps:

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#1 Authentic & Personalised Way To Advertise

UGC generated on Facebook and Instagram, the most popular social media platforms, provide a sense of reliability to potential users. Existing users talking about their experience with the brand authentically market them by way of word-of-mouth marketing, and when incorporated into ads, it increases its overall impact massively. 

Another amazing advantage of leveraging UGC in ads is that you can easily reach your target audience and engage them with what connects to them the most. Studies show that 71% of users like personalized ads over branded ones. 

#2 Better Audience Trust

Depending upon UGC’s influence, it should not come as a surprise that a whopping 93% of users look up to user-generated content while making their purchase decisions. Users have become rather active, and persuading them with static and plain-sailing ads is no longer feasible. 

Here is where UGC comes in to play a substantial role. 

92% of consumers rely on earned over owned media. In Facebook and Instagram ad campaigns, UGC can help potential users understand the brand from an existing user’s point of view, which helps generate trust in users’ minds. 

When ads on Facebook and Instagram contain content generated by the user, they can automatically fetch more user attention. Furthermore, unlike branded content, UGC is not scripted, which boosts its credibility too. 

#3 Increased ROI & Conversion Rate

UGC is more than just a passing buzzword. It generates trust and a sense of authenticity in the users’ minds. The state of marketing today is nowhere near to how traditional marketing used to operate. Ads containing UGC tend to get 5 times more clickthrough rates. 

Showcasing UGC in ads placed on Facebook, Instagram & TikTok provides social proof, as the users engaging with your brand predominantly vouch for you and your product/service.

It is an influential way to market your business online, as UGC can be created in abundance without even costing you a penny.

This will lower your Influencer marketing costs, efforts, and overhead expenses for producing branded content and increase conversion and revenue. All these things together will yield you an ROI like never before. 

#4 Enhanced User Engagement 

Fetching user engagement is the biggest challenge placed against brands. They are actively looking for ways to increase it and what could be better than leveraging users’ creativity?

As the most substantial social media platforms, Instagram and Facebook help marketers connect and engage with the audience better and display the reviews shared by existing users and advocates for the brand.

This helps potential users trust the brand while influencing their purchase decisions. Potential users better understand the brand and resonate with its value, which helps fetch more attention and hold onto it.

UGC and professional ad content can increase brand engagement by 28% on average. By showcasing attractive UGC in your Facebook ads, you can improve engagement and relevance. 

#5 Instills Credibility In Users’ Mind

Would you want to click on stock images when the internet is loaded with authentic and exciting content? 

Gone are the days when people considered word-of-mouth recommendations before buying or using any product or service. Now, they look to social media platforms for the same. 

According to statistics, 81% of the users’ purchase decisions were influenced by social media.

The users you are trying to target through advertisements already find UGC engaging and genuine. So, why not leverage it optimally? As it is already time to embrace the trend. 

For instance, Toyota took up UGC to power Facebook ads for their annual “Feeling The Street” campaign. Over the span of six weeks, the campaign showcased the best of UGC that its followers were sharing on Instagram and got more than 1.2 million likes, comments, and shares together. While operating in the same budget, they could still achieve a 440% increase year over year ad engagement.

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• Expertise: Creators understand what resonates with audiences on different platforms.
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• Targeted Content: Find creators who specialize in your niche or target audience.

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Conclusion

A constant surge in competition is ‘assessing’ brands,’ which would be an understatement as they are compelled to reframe how they market themselves. 

Choosing an empathetic way to market has never been so important. Investing a lot of money in branded ad shoots might or might not reap a good ROI. However, leveraging UGC while running ads on Facebook and Instagram can potentially deliver more attraction, engagement, and conversion than you can gather. 

Moreover, every user and the content generated by them is unique in its way. Utilizing this dynamism while running ads on Facebook and Instagram can humanize your brand and make it more relevant.

If the figures are already tempting, why not achieve them by amalgamating UGC in your next ad campaign? To learn more, reach out to us!

UGC-based ads get 4x higher click-through rates and a 50% drop in cost-per-click than average