4 Types of UGC Ads and How To Collaborate on UGC Ads

User-generated content (UGC) ads use real customer or creator content to promote a product in an authentic, relatable way. 

When done well, the result is high engagement, quality social proof, and efficient customer acquisition. One analysis of brand social media accounts found that posts featuring UGC drove conversion rates 10.38 times higher than posts without it.

Here’s how UGC ads work, where to source content, and how to create and use them to improve engagement and drive conversions.

What are UGC ads?

UGC ads feature photos, videos, reviews, or testimonials from real customers or creators that brands promote across social media, search, or other marketing platforms. These could include TikTok hauls (videos where someone shows off a batch of recent purchases), customer unboxing videos, or honest reviews. Instead of relying on a traditional creative team, brands use material that reflects real user experiences. 

Done well, UGC ads blend into social feeds and feel authentic to the target audience rather than reading like a traditional ad. Beyond ads, use UGC to strengthen product pages, email campaigns, and landing pages, and support search engine optimization (SEO) by adding fresh content and real customer language to your website.

Commissioning a creator to produce UGC campaigns can also be relatively cost-effective compared with a studio-produced spot. A single piece typically runs about $100 to $150 at the low end and $300 to more than $500 at the high end, with prices varying by content type (video or image), creator experience (beginner, intermediate, expert), and usage rights.

Types of UGC ads

• Testimonial videos
• Product demos
• Unboxing content
• Lifestyle content

UGC ads take a few common forms, each suited to a different goal, from building trust to showing a product in action. Here are types of content you can create or repurpose into paid ads:

Testimonial videos

Ninety-six percent of customers say ratings and reviews are the most influential factors in their purchasing decisions. Testimonial-style UGC videos feature real customers sharing their experiences, providing strong social proof. 

Testimonial UGC videos often include:

• Before-and-after results

• Personal stories

• Honest feedback

Dieux Skin frequently shares testimonial-style UGC videos, showing real people applying products, describing their experience, and demonstrating results in a direct-to-camera format. 

Product demos

Product demos show how a product works in real life, helping consumers visualize it through a creator they relate to. The focus is on function, demonstrating whether the product does what it claims.

Examples include:

• Skin care routines

• Fitness product use

• Software walkthroughs

Gymshark frequently shares videos of athletes and everyday creators using the brand’s apparel during workouts, showing how the products move and perform.

Unboxing content

Unboxing videos capture first impressions, making them feel less like a produced ad and more like a genuine moment.

They typically show:

• Packaging

• Product details

• Honest, unscripted reactions

Brooklinen frequently appears in unboxing videos on TikTok and Instagram, where customers and creators open their bedding, comment on the feel of the fabric, and show the product as they set it up at home. 

Lifestyle content

Lifestyle UGC content shows products in the context of someone’s life, rather than demonstrating how it works.

For example:

• Clothing worn on a weekend hike

• Home goods in real living spaces

• Food products in a home kitchen

Tentree often features customers and creators wearing its clothing on Instagram while hiking, traveling, or going about daily life, showing the products in everyday outdoor settings. 

How to collaborate on UGC ads

1. Source content from real customers
2. Work with professional UGC creators
3. Focus on strong hooks
4. Maintain authenticity
5. Secure usage rights
6. Create your ads
7. Test multiple variations

Some brands work with creators from day one, while others rely on their existing customer base or a mix of both. Wherever your UGC comes from, here's a process to help you get your ads off the ground:

1. Source content from real customers

Start by encouraging your existing customers to create content. Unlike hiring a creator, this path is typically low- or no-cost. You’re tapping people who already use and post about your products, often in exchange for a free product, a discount, or simply asking permission to repost. 

UGC creators don’t need huge follower counts, either; UGC is about content quality rather than reach. Gathering this content gives you a library of authentic material to draw from when you build out ads later. A few ways to do that:

• Send free products in exchange for reviews.

• Use branded hashtags on social media to make customer content easier to find, but always ask for permission before reposting or repurposing their content for ads.

• Offer a discount in exchange for photo or video submissions.

Skin care brand Starface encourages customers to share photos wearing their pimple patches and reposts that content across social media channels, turning real posts into authentic marketing assets.

Shopify’s content marketing tools make collecting user content easier:

• Shopify Forms. Ask customers to submit testimonials, collect emails alongside UGC submissions, and run campaigns requesting photos or feedback.

• Social media integrations. Pull in tagged customer content, track branded hashtags, and repost user content to your own Instagram and TikTok feeds.

• Shop Campaigns. Capture feedback from conversations and turn customer messages into testimonials (with consent).

2. Work with professional UGC creators

Collaborate with creators who specialize in making UGC-style ads. Find creators directly on platforms like TikTok and Instagram by searching for “UGC creator,” “UGC portfolio,” or niche-specific hashtags like #skincareugc or #fitnessugc.

Another way to find creators is through platforms that specialize in connecting brands with UGC creators, such as Billo, Insense, Trend, and Upfluence. These platforms pre-screen creators, show past UGC video examples and performance, and handle contracts and usage rights. 

For example, UGC creator DC Banks is a fitness and lifestyle creator who reviews ecommerce products in the fitness and health niche. He might try a set of adjustable dumbbells during a home workout or film a chest workout with a bench he’s reviewing. 

When you hire a creator, you typically give them a brief, a short set of instructions explaining what to make, your key message, the preferred format, and any must-include points. A good brief keeps the content on-strategy but still lets the creator sound natural.

3. Focus on strong hooks

The first few seconds of a video matter most. According to TikTok, 90% of ad recall impact is captured within the first six seconds. This means your ad needs a strong hook, which you can include in your brief if working with a paid UGC creator. 

Specify what the opening moment should accomplish. This could include asking a question, highlighting a problem, or showing a surprising result.

If you’re using customer content, look for videos that include a natural hook when filtering content to use. Ask yourself, “If I were scrolling, would I stop here?” If not, keep looking.

For example, Graza’s UGC-style TikTok ads frequently open with bold, attention-grabbing hooks like close-up shots of pouring, quick cuts, or tongue-in-cheek ideas, like an olive oil lip gloss.

4. Maintain authenticity

Effective UGC should feel natural and unpolished, shot in real environments, spoken in a conversational tone, and focused on showing the product in use. According to research by MAGNA, inauthentic ads are 19% less effective at driving purchase intent.

“UGC seems like an easy lever to pull, but if there’s no substance behind it, the average consumer is smart and will not be convinced,” says Rosie Jane Johnston, founder of By Rosie Jane, in an episode of Shopify Masters.

The goal is to match the look and feel of everyday social media content, like this Rhode Skin video of a creator doing her makeup in the car, rather than a traditional ad. 

5. Secure usage rights

Make sure you have permission to use UGC content in ads. Using someone else’s content without permission can result in copyright claims and damage your relationship with the customer or creator. When you commission a creator, usage rights are typically built into your agreement and reflected in the fee. Broader rights, like running the content as a paid ad across multiple platforms or for a longer period, cost more. When you’re reposting or repurposing a customer’s organic content, ask permission directly and in writing.

Clearly define how the content will be used, including platforms, formats, and duration.

6. Create your ads

Once you’ve sourced your content and gotten permission to use it, turn it into finished ads. This involves trimming clips, adding captions, reformatting for each platform’s dimensions, or stitching multiple pieces together. Use free and low-cost tools like CapCut, InShot, Adobe Premiere Rush, and Canva to keep the content feeling native and authentic.

7. Test multiple variations

Test multiple creators using different hooks in various formats to identify what resonates with your audience before you scale ad spend. 

For example, you might test three different videos with different opening lines to see which one your audience sticks around for. If you find that an acne-focused hook performs best, you’d double down on that messaging across creators and formats. 

You can test UGC by running multiple ad versions and comparing metrics such as watch time, clicks, and conversions to determine which approach performs best. Tools like Google Analytics and Shopify Analytics help you track performance across versions.