Authenticity is a game changer for online businesses. 90% of customers prioritize authenticity while choosing a brand to buy from.
In this vast, competition-driven marketplace, the more authentically you can present your business, the more it counts towards your growth. One practical approach to boosting your business’s authenticity is User-generated content (UGC). Hence, brands capitalize on it by running branded UGC ads.
People love to hear real-life experiences, so using them in advertisements is a great way to earn the trust of potential customers. It is a good investment that helps businesses multiply their ROI.
Want to see better growth of your business as well? Let’s delve into the world of UGC Ads.
What are UGC Ads?
UGC Ads, or User-Generated Content Ads, feature content created by actual product or service users rather than the brand itself. This content can include UGC photos, UGC videos, UGC Reviews, testimonials, and social media posts showcasing authentic product experiences.
Social media platforms like Instagram, YouTube, etc, are full of user-generated content that quickly attracts the attention of potential customers. Through UGC Ads, brands can showcase their products more authentically and help to attract new customers.
Lulus represents an excellent example of UGC ads. This brand made suitable use of its UGC. Lulus sourced content from its fans and showcased it on product pages with product details. This kind of UGC is more potent than regular reviews. UGC on the Lulus product page helps potential customers connect with products on personal levels by showing them real-life experiences.
Things to Consider Before Using UGC Ads
Before diving into UGC ads, consider these crucial points:
- Legal Rights & Permissions:
- Always secure explicit permission from creators to use their content.
- To avoid legal issues, clarify usage rights (where, how long, etc.).
- Be mindful of copyright and intellectual property.
- Brand Alignment:
- Ensure UGC reflects your brand values and desired image.
- Screen content for inappropriate or off-brand material.
- Maintain consistency with your overall marketing message.
- Authenticity vs. Control:
- UGC’s power lies in its genuineness. Avoid over-editing or scripting.
- Balance authenticity with maintaining a positive brand representation.
- Content Quality:
- While authenticity is key, ensure the content is reasonably high-quality.
- Poor visuals or audio can detract from your message.
- Consider the overall quality of the recording.
- Target Audience Resonance:
- Choose a UGC that resonates with your specific target audience.
- Consider demographics, interests, and platform preferences.
- What type of content will your target audience trust?
- Platform Appropriateness:
- Tailor UGC to the platform where it will be used.
- Content that works on TikTok may not be suitable for LinkedIn.
- Understand the platform’s user base.
- Monitoring and Moderation:
- Establish a system for monitoring and moderating UGC.
- Address any harmful or inappropriate content promptly.
- Be ready to interact with the people who create the content.
- Transparency:
- Disclose if the users were given any compensation.
- Be transparent about the fact.
Benefits of UGC Ads:
UGC Ads help to change customer perceptions and build trust. Visual UGC content like product posts and Product videos works well for the growth of online stores. UGC videos and UGC photos develop a sense of authenticity and trust for your e-commerce store. As UGC is real-life customer insight about the product, potential customers can resonate with it the best.
1. Increased Conversion Rates
Trust is a significant factor in customers’ willingness to shop from online stores. Gaining customers’ trust is the utmost important task if you aim to improve conversion. UGC is an excellent trust factor for online customers as it comes directly from experienced product users.
56% of customers get influenced to buy a product after seeing it in a positive UGC photo. So, businesses must add UGC Ads to their marketing strategy. Also, embedding UGC in an eCommerce store brought 161% more conversions. Using Tagshop, you can easily create shoppable UGC galleries and showcase them in your e-commerce store.
2. Enhanced Product Credibility
Traditional advertisements have been part of marketing for ages but cannot authentically represent a brand in this online marketing era. Modern customers crave brand authenticity, and UGC, like visual reviews, is the best solution. Customers find UGC 50% more trustworthy and 20% more influential than other content types.
So, when they see UGC Ads, it boosts the credibility of your product. Thus, showcasing authentic user-generated content through paid ads is crucial for customers seeking authenticity.
3. Improved Customer Engagement
User-generated content provides better answers to potential customers’ queries than brand-generated content. Content from a real audience about a brand has 28% better engagement than branded content. Potential customers can understand products from the viewpoint of experienced users and establish better interactions.
Thus, UGC builds a bridge of trust between your brand and customers, encouraging more people to interact with you. This helps boost your brand’s engagement and further enhances social proof, encouraging more people to choose you.
4. Targeted Advertising
Targeted advertising shows product advertisements to potential customers, cutting through the crowd of other ads. It is a way of showing potential customers more personalized UGC content they might find interesting.
Brands run personalized UGC Ad campaigns based on data that reflect customers’ shopping interests, browsing history, and specific choices. So, when customers scroll through social media channels, they see tailored paid product ads in their feeds.
How Do You integrate UGC in Meta & Sparck Ads
Are you planning to run UGC ads? You must know that various UGC ads offer unique benefits for brands and customers. Two of the most used categories have been listed and explained below.
1. Meta Ads
Meta ads are part of online advertising and are ideal for businesses that run ads on Facebook and Instagram. This ad category can promote brands in different advertising industries, such as advertising services, ad space, industry events, etc. You can create a shoppable fashion gallery using the Meta ads. Thus, Meta ads are ideal if you want to build a lasting connection with your audiences. Moreover, you can boost their online sales, drive better in-store traffic, and reach new customers.
2. Spark Ads
Spark ads are paid TikTok ads that use the original shoppable TikTok content to run ads. Brands use the organic content created by TikTok users to run Spark Ads. Their format lets you collect the content and create TikTok in feed ads or TikTok top view ads. Moreover, you can create a shoppable UGC gallery from Spark ads with tools like Tagshop to streamline your customers’ buying journey.
| Feature | Meta Ads | Spark Ads |
| Platform | Facebook, Instagram, etc. | TikTok |
| Purpose | Diverse objectives | Engagement and reach |
| Targeting | Granular targeting | Algorithm-based |
| Formats | Various formats | Primarily video-based |
| Content | Brand-created or user-generated | Creator-generated |
| Monthly Active Users (MAU) | Over 2.9 billion | Over 1 billion |
| Average Cost-per-Click (CPC) | $1 – $2 | $0.50 – $1 |
| Average Conversion Rate | 2.35% | 1.00% |
| Video Completion Rate | 80% | Higher (due to shorter format) Export to Sheets |
How To Showcasing Products with UGC Ads
It’s time to take action and add UGC Ads to your shopify marketing strategy. Are you new to UGC Ads and don’t know how to showcase your product authentically? Don’t worry! The first thing you need to remember is to be creative with such Ads.
We have listed some strategies that help showcase your product through attractive UGC Ads and impress your targeted audiences. Let’s examine them.
1. Lifestyle Content
People flaunt their lifestyles on shoppable media, and sharing videos and photos is part of it. After buying any product or clothes, users post pictures or videos highlighting the brand if they find it useful.
Nowadays, brands have great content from their satisfied customers, and by collecting them, businesses can run UGC Ads. Potential customers find UGC Ads more engaging as they can see the reactions of real people regarding the products.
2. Before-and-After Content:
Everyone is taking advantage of social media’s power to raise awareness of products that positively impact people’s lives. Users share pictures and videos that show before and after scenarios of the products.
Thus, brands can choose user-generated content rather than creating original content and run successful UGC campaigns. It is an excellent way for businesses to show the positive impact of their products on users. By watching such UGC Ads, brands can quickly influence their potential customers to explore their products and convert.
3. Customer Reviews and Ratings
Everyone is aware of the importance of customer reviews and ratings. In this competitive online market, the power of customer reviews can distinguish a business from others. Video testimonials and product reviews are also part of it and are social solid proof for brands.
Brands can easily integrate these UGC reviews on their product page to convince visitors. Moreover, brands can create UGC ad copies to run online by collecting those customer reviews and ratings. These ads can also be showcased online to help potential customers make well-informed buying decisions.
4. Unboxing Videos
Today, UGC creators and influencers are making unboxing videos of newly launched products that audiences love to watch. In these unboxing videos, creators introduce the new product to the viewers and give a brief overview of its features, functionalities, and packaging. They also share their personal experiences with the product.
These user-generated unboxing videos excite potential customers to learn about the features. So, it’s a great idea for brands to use unboxing videos as UGC ads. They help the audience assess the product’s quality and usability before buying it. Such unboxing UGC ads quickly influence potential customers’ purchase decisions.
What Steps Need to Apply UGC In Your Ads
Implementing User-Generated Content (UGC) into your advertising strategy involves steps to ensure you’re using it effectively and ethically. Here’s a breakdown of the key steps:
1. Define Your Goals and Target Audience:
- What do you want to achieve? Increase brand awareness, drive sales, or boost engagement?
- Who are you trying to reach? Understanding your target audience will help you determine the type of UGC that will resonate with them.
2. Identify the Right Platforms:
- Where does your target audience spend their time online? Depending on your audience and the type of content, focus on platforms like Instagram, TikTok, Facebook, or YouTube.
3. Encourage UGC Creation:
- Run contests and giveaways: Incentivize users to create content by offering prizes.
- Create branded hashtags: Encourage users to use specific hashtags when sharing content related to your brand.
- Ask for reviews and testimonials: Actively solicit feedback from satisfied customers.
- Provide clear guidelines: let people know what kind of content you seek.
4. Obtain Permission and Rights:
- Always ask for permission: Ensure you have the creator’s consent before using any UGC in your ads.
- Clearly outline usage rights: Specify how and where you will use their content.
5. Curate and Select High-Quality UGC:
- Review all submissions: Ensure the content aligns with your brand values and is high quality.
- Select authentic and engaging content: Choose genuine content that resonates with your target audience.
6. Integrate UGC into Your Ads:
- Create compelling ad creatives: Use the selected UGC to create visually appealing and engaging ads.
- Tailor content to each platform: Adapt your ads to each platform’s specific requirements.
- Use the content in various ad formats: Pictures, videos, and written testimonials.
7. Monitor and Analyze Performance:
- Track key metrics: Monitor engagement, click-through rates, and conversion rates.
- Analyze results: Identify what’s working and what’s not, and adjust accordingly.
- Refine your strategy: Continuously optimize your UGC ad campaigns based on data and insights.
How to Measure UGC Ads Success
Just running UGC Ads is not the end of your work. It is crucial to monitor their performance to measure their effectiveness. So, while measuring your UGC ads’ performance, consider monitoring the metrics below.
1. Engagement Metrics
Track the engagement metrics of UGC ads, including likes, comments, shares, and brand mentions. This will give you insight into how your audiences interact with your ads.
2. Click-Through Rates (CTR)
Check the click-through rate of your UGC ads. It tells how many people click on your UGC ads and engage themselves.
3. Conversion Rates
One metric that can decide the success of your UGC ads is the conversion rate. So, track and collect data to measure the number of people taking action through your UGC ads. It is very essential data that decides the success of your marketing plan.
4. Brand Sentiment Analysis
Brand sentimental analysis is a valuable method that gauges your audience’s perception of your brand. It helps businesses determine the overall feeling of their UGC ads, whether negative or positive.
Conclusion
Marketers must understand and leverage the potential of UGC ads, which come with undeniable perks, including genuine connections with their targeted audiences.
As this is a new marketing strategy, it may need to be clarified for businesses to use it properly. By now, you have gathered complete knowledge of UGC ads, from their types to benefits, from this article.
It is high time you embraced your customers’ creativity and picked the best content to run successful UGC campaigns.
