UGC ad (user-generated content ad)

Definition

A UGC ad is a paid ad built from content made by a real person, such as a customer or a hired creator, filmed in a casual, first-person style rather than in a studio. It is judged the same way as any other ad, by what it does to the numbers, not by how real it looks.

How to use it

Many stores use this format because the content looks like something a friend would post, and that can stop a viewer who skips polished brand ads. The result still has to be tested. Compare the creator's cut with a studio cut of the same offer, keep the audience and budget the same, and read the hook rate and the cost per purchase before deciding which style to scale.

Put the rights in writing before any paid use. Agree on the channels, the countries, the length of use and the ad accounts where the content may run, and keep the signed agreement next to the asset file. Disclose a paid partnership the way the rules of each market and each platform require, and check those rules with the client's legal adviser rather than assuming.