How to nail UGC ads for your DTC campaigns

As a consumer, you’re likely to see  50 to 400 ads a day. So many in fact, that you may not consciously notice them.
So—in an ad-saturated world, how do you get consumers to pay attention to your paid content and buy your products?

Research shows that consumers gravitate to authentic user-generated content (UGC). They trust other customers’ opinions and experiences over brands. And what everyday people have to say about products influences their purchasing decisions.

This article will cover how to make your ads stand out by incorporating more UGC.

What is UGC?

UGC stands for user-generated content. It’s the content your customers create about your brand. UGC honestly depicts how your customers view your products or services.

If you’ve seen any unboxing videos on TikTok, read a Google review, or checked out a product haul on YouTube—that’s all user-generated content.

Why use UGC in your ads?

60% of consumers report UGC is the most genuine form of advertising. And 92% of people believe UGC ads over traditional advertising. 

What’s more, consumers don’t always trust brand messaging—but they’re overwhelmingly more likely to trust what friends, family, other buyers, influencers, and even strangers have to say.

While there’s absolutely a time and place for polished brand marketing materials, UGC can help you build trust, increase your credibility, and boost your product sales.

What’s the difference between influencer ads and UGC ads?

You'll no doubt be able to name a few famous influencers off the top of your head. They'll most likely have millions of followers who look to them for entertainment, advice and inspiration.

An influencer ad is when a brand partners with one of these individuals and pays them to appear in an ad promoting its products.

But you don’t necessarily need to partner with a mega-influencer  to create an outstanding influencer ad. There are also niche influencers with smaller—yet dedicated followers. 

For example, the men’s face care brand, Shakeup Cosmetics, partnered with a micro-influencer, Peter Caulfield, to create a fun influencer ad.

This influencer ad is valuable because Peter’s audience is already paying attention, and they match Shakeup Cosmetic’s target customers.

A UGC ad, on the other hand, is when brands find a person’s organic content and ask the creator for permission to turn it into an ad.

For example, you might follow…Sarah, the Beauty Enthusiast. Mike, the Tech Aficionado. And Laura, the Fashionista.

These are everyday people who try different products and then create authentic content (e.g., product reviews, unboxing videos, testimonials, etc.) around their favourite picks.

Here’s an example of user-generated content for the non-alcoholic beverage brand Drink Parch.

The content is raw and real and features an everyday bartender, which helps everyday people connect with the content.

What ROI can you expect from UGC?

There are two ways to quantify your return on investment (ROI) from user-generated content. 

The first is what you gain in terms of customer trust and loyalty when you use UGC. Stats show customers overwhelmingly trust other customers over branded ads, and this leads to loyalty. 

For example:

• 92% of consumers trust reviews and testimonials more than traditional advertising
• 85% of consumers say UGC holds more sway than branded content
• A brand using UGC on its platforms will likely gain the trust of 65% of consumers

The second way to quantify the ROI of UGC is in more traditional terms—how much better UGC campaigns perform over traditional campaigns.

Successful campaigns that use UGC are often more successful than those that don’t. Consider the following:

• User-generated videos on YouTube get 10x more views than videos produced by the brand
• Social media posts with UGC see a 28% higher user engagement rate than typical brand posts
• Positive reviews can boost a page’s SEO rankings by up to 25%

Not only does UGC perform well, but it’s also 50% more cost-effective than traditional campaigns.

I asked Joshua Stofferahn from the boutique video advertising agency Group Project for his  perspective on the ROI of UGC.

He explained that they always include UGC (namely, real customer reviews) in every ad they create for their clients. Here’s an example from Group Project’s Vitruvian Man ad for Mando:

In Joshua’s words:

“Real customer reviews add trust and legitimacy to the brand voice. They show that real people see excellent results from the products we’re promoting. Adding UGC to our ads is non-negotiable because of how much higher they perform.”

5 best practices for using UGC ads in your advertising campaigns

Now you know using UGC in ads is “non-negotiable,” how can you use UGC in ads to meet your marketing goals?” 

Here are 5 ways to incorporate UGC into your marketing strategy across different channels.

1. Use Spark Ads on TikTok to create authentic creator-led ads

You may not recognise them at first glance, but TikTok is loaded with UGC ads. 

And with 55% of TikTokers saying they are more likely to trust brands when they hear about them from creators than from other ads, it makes sense why.
One way to give TikTokers more of the high-quality creator-led content they trust and crave is with Spark Ads.

What are Spark Ads?

A TikTok Spark Ad is a native ad format, which means its design matches TikTok's look, feel, and function.

With a Spark Ad, brands can find organic posts that creators have already made and then promote that UGC as an ad.

When brands promote these kinds of ads, it also keeps all the post’s original engagement (e.g., likes, views, comments) intact, adding additional social proof.

How Isle of Paradise uses Spark Ads to boost visibility

Isle of Paradise is a vegan beauty brand that used Spark Ads to successfully amplify its Glow Drops product.

They collaborated with top creators and real users to develop genuine content using the custom hashtag #WakeUpandGlow. They also repurposed organic testimonials from existing TikTokers as Spark Ads.

By using Spark Ads, Isle of Paradise achieved a 500% ROI, 45 million video views, a 1.1% click-through rate, and a 68% increase in weekly revenue. 

How to create a Spark Ad?

If Spark Ads sound ideal for your brand, here’s how you can create one:

You can do it in 6 easy steps:

1. Choose a post: Identify an existing organic TikTok post you want to promote.
2. Get permission: If it's not your post, request permission from the creator to use their content. Sometimes creators will let you use their content for free. 
3. Create a Spark Code: In the TikTok app, the creator you partner with will generate a Spark Code for the post. They can do this by tapping the three dots on the TikTok post, selecting "Ad settings," and choosing "Generate code." They will give you this code.
4. Upload to TikTok Ads Manager: Log into TikTok Ads Manager, choose "Spark Ads," and enter the Spark Code.
5. Set up your ad: Define your campaign objectives, audience, budget, and schedule.
6. Launch the ad: Review everything and launch your Spark Ad to start reaching a wider audience.

That's it—your Spark Ad is live!

Learn more about how to create a TikTok marketing strategy. 

2. Feature popular creators in your Instagram Reels

Instagram has over 2 billion active users, making it another great platform for promoting creator content.

While there are several ways to promote UGC on Instagram, including Instagram Stories, Instagram Shopping, and Carousel posts, Reels may be the best place to start.

Why? Reels have an average video view rate of 2.54%, which is higher than any other video format on Instagram.

What are Instagram Reels?

Instagram Reels are short, engaging video clips that allow brands to showcase user-generated content (UGC) in a creative and dynamic way. 

Reels can be up to 60 seconds long and are perfect for highlighting product demonstrations, customer testimonials, or trending challenges. 

How Glossier uses UCG to boost social proof

Glossier famously uses UGC on its account, including in its Instagram profile, Stories, and Reels ads.

The beauty brand often partners with creators and encourages them to create videos using their products.  Here’s an example of a UGC video from Cecilia Gorgon showing how she uses Futuredew 3:

This particular ad lives on Gorgon’s profile.

Glossier also takes it a step further and promotes other UGC Reels from Gorgon (and other creators) directly on the Glossier Instagram account:

It’s a double-win. Gorgon’s followers learn about Glossier when they visit her profile. And Glossier earns social proof by promoting Gorgon’s Reels on their account.

How to create a UGC Reels ad on Instagram 

Glossier has won customer’s hearts with UGC on Reels—and now it’s your turn. Here’s how:

1. Select the UGC: Choose a user-generated Reel that aligns with your brand and campaign goals.
2. Get permission: You always want to get permission from the creator if your brand didn’t create the content. The last thing you want is a lawsuit because you’re using content without permission.
3. Save the Reel: Save the selected Reel to your device or directly within Instagram.
4. Go to Ads Manager: Log into Instagram Ads Manager and select "Create Ad."
5. Upload the Reel: Choose "Reels" as your ad format and upload the UGC Reel.
6. Set up the Ad: Define your target audience, budget, and campaign objectives.
7. Add a CTA: Include a compelling call-to-action (CTA) to drive engagement. You can pick between things like “shop now,” “learn more,” and “contact us.”
8. Launch the Ad: Review the setup and launch your Reels ad to promote the UGC.

3. Post user video testimonials on YouTube

YouTube has over 2 billion monthly users. 

Want to earn the trust of these YouTube viewers? Start by sharing a  popular type of content—unboxing videos.

What are unboxing videos on YouTube?

Unboxing videos have been around for almost as long as YouTube has. These popular videos feature a creator opening a package from a brand that reveals new products.
The creator showcases the packaging, contents, and first impressions of the products they’ve received.

If you have children, you may remember the early days of YouTube when people would open eggs with surprises in them. To give you anecdotal evidence of the power of unboxing videos, my children thought YouTube was called “Surprise Eggs” for four straight years.

How Stampin’ Up grows its reach with unboxing videos

Paper crafting company Stampin’ Up! often partners with scrapbooking creators to show off upcoming bundles.

Here’s an unboxing video by Stamp With Amy K featuring an upcoming collection.

It’s a great way for Stampin Up! to reach its intended audience, showcase its products, and increase sales.

How to launch a YouTube unboxing video ad

Now, it’s your turn to make your very own version of a “Surprise Egg” unboxing video. Follow these steps to get started:

1. Identify influencers: Research and select influencers whose audience aligns with your target market.
2. Send products: Reach out to these influencers and send them your products for unboxing. Encourage them to create a video.
3. Upload to YouTube: Have the influencer upload the video to their YouTube channel or upload it to your own channel with their permission.
4. Access Google Ads: Log in to your Google Ads account and start a new campaign.
5. Select campaign type: Choose "Video" as the campaign type and select your campaign objective, such as "Brand awareness" or "Product consideration."
6. Choose video ad format: Decide on the format (e.g., skippable in-stream ads, non-skippable ads, or discovery ads).
7. Select the video: Pick the uploaded unboxing video as the ad creative.
8. Launch the campaign: Review your settings, then launch the campaign to start reaching your target audience.

4. How to use UGC on Pinterest to boost reach

Pinterest is the place to share ideas and get inspiration from others with similar interests, making it the perfect place for brands to aggregate user-generated content.

Brands can capture UGC through shared boards and then promote UGC with Pinterest Ads.

What are Pinterest Ads?

Pinterest Ads are paid promotions allowing brands to showcase their products or content, including user-generated content (UGC), to Pinterest users.

These ads appear as promoted Pins in users' feeds, search results, and related Pins but they also blend in naturally with organic pins.

How Mejuri works with content creators on Pinterest

The jewellery brand Mejuri works with content creators on Pinterest all the time. The brand has created the #finecrew community and use UGC across several social channels—including Pinterest.

Visit the Mejuri page, and you’ll see well-organised creator and brand content that’s easy to share.

How to turn your UGC into a Pinterest ad 

If your brand, like Mejuri, captures UGC from Pinterest, here’s how you can turn it into an ad on the platform:

1. Select the UGC: Choose high-quality UGC from your shared Pinterest boards.
2. Create a new campaign: Log into your Pinterest Ads Manager and start a new campaign. Choose your campaign objective, such as "Brand awareness" or "Conversions."
3. Upload the UGC: Upload the selected UGC as the creative for your ad. Make sure to add a compelling description and relevant keywords.
4. Target your audience: Define your target audience based on demographics, interests, and behaviours that align with your brand's goals.
5. Set your budget. Establish your daily or lifetime budget, and choose a bidding strategy that fits your objectives.
6. Review and launch: Double-check all your settings, then launch your new Pinterest ad.
   

  💡 Discover tips on optimising your Pinterest profile with expert, Archana Haarnack.

5. Use customer content on your advertising landing pages

The ecommerce market is worth $6.9 trillion globally.This year, global ecommerce sales are projected to hit $6.3 trillion dollars, according to Shopify.

Since ecommerce sales are up and user-generated content influences purchases, brands would also be wise to include UGC on their landing pages. Why? Landing pages are often the first encounter consumers have with your brand. And, in a saturated market, your ads need to stand out with social proof.

What constitutes UGC on ad landing pages?

UGC on ad landing pages includes content that customers or users create, such as reviews, testimonials, photos, videos, or social media posts. 

Brands often integrate this content into the landing page to build trust, add authenticity, and lead customers to a purchasing decision faster.

See how Lolavie uses UGC on its landing pages to gain trust

Jennifer Aniston’s brand, Lolavie, could probably get by with Aniston’s endorsement alone. But, the brand understands it's not all about Jennifer.
That’s why the company also pulls in testimonials from everyday customers and social media creators and displays them on its landing pages.

Lolavie is crushing ecommerce marketing by taking advantage of celebrity influencers and user-generated content. Double win!

And, you can too, by making one simple change: switch out some of your branded content to UGC.

How to use Dash to manage your UGC

There are loads of ways to incorporate user-generated content into your advertising and marketing campaigns.

The real challenge lies in finding, organising, and editing all the available UGC.

Enter Dash.

Dash is the digital asset management solution that helps you manage all your creative assets. With Dash, you can:

• Capture and organise UGC: Use Dash to set up guest upload links for creators to send content to you. Then, simply approve which images and videos go live in Dash. Once in Dash, add tags, filters and relevant information to your UGC. For example, you can organise content by campaign type, content type, or product type. You can also add expiry dates so nobody uses the UGC after the designated date.
  
  The DTC haircare brand, RevAir does this using Dash's guest upload feature. Kim, the brand’s CCO says:
  
  “Some of our customers generate outstanding videos and reviews for us. Before Dash, one person might send it via Dropbox, another via Google, and another in a text. Having one link that notifies us when content is sent feels more professional, and I feel like we don’t lose anything.”
  

• Resize images for different marketing channels: SometimesUGC needs a couple of tweaks to look its best across different platforms. In Dash, you can crop and resize images and videos to format them for different social and marketing channels.

• Search your visual content: Once you’ve assigned tags and filters to your content in Dash, anyone on your marketing team can use the search functionality to find relevant UGC. 

• Share assets with your agencies and partners: Dash also allows you to set up public portals to share approved UGC with agencies and partners. This way, your partners can self-serve the assets they need without needing to hassle you. It’s a win-win.✨

And the best part is you can try Dash for yourself! Sign up to a 14-day free trial and get all features and unlimited users. After your trial, pricing starts at £70/$109 per month.