Video and UGC
What Is UGC? Meaning, Types and How UGC Ads Work
UGC videos, UGC creators, UGC ads: the term is everywhere. What UGC means, the three types, how a UGC ad is built and why it works so well in ads.
Written by Genly's AI team, reviewed by Marlon Bonink
· 4 min read
You see the term everywhere: UGC videos, UGC creators, UGC ads. Agencies recommend it, competitors run it, and on Instagram you see more and more clips of regular people recommending products. But what does UGC actually mean, and why does it work so well in ads?
Short answer: UGC stands for user generated content: content made by users rather than the brand itself, such as a review video or an unboxing. In ads, UGC works because it feels like a recommendation from a regular person, not like advertising. Today much UGC is made by paid creators or with AI, in the style of a real user.
UGC meaning in one sentence
UGC means user generated content. Originally it covered everything customers create and share themselves: a photo of your product on Instagram, a review, a clip where someone shares their opinion. Brands now deliberately use that style in their ads.
Three types of UGC
| Type | Who makes it | Real? | Example |
|---|---|---|---|
| Customer UGC | A customer, on their own | Yes, a real experience | A customer posts a photo of your product and tags you |
| Creator UGC | A paid creator | Acted, in the style of a user | A creator films an unboxing video for your ad |
| AI UGC | An AI persona | Made with AI | An AI presenter explains your product in a video |
The difference matters. A real customer may talk about their own experience. A paid creator plays a role in an ad. An AI persona has never used your product and must not suggest otherwise.
Why does UGC work in ads?
- It does not feel like an ad. In a feed full of friends and creators, a polished ad stands out as advertising. A UGC video blends in.
- Recognition. A regular person with a familiar problem is more believable than a brand praising itself.
- Product in use. You see how something looks, feels and works in a real setting.
- Easy to vary. Different openings and creators let you test quickly what works.
How a UGC ad is structured
| Part | Timing | What happens | Example |
|---|---|---|---|
| Hook | 0 to 3 seconds | Familiar problem or striking moment | "My feet were always cold in bed." |
| Problem | 3 to 8 seconds | Why it is annoying | "Socks did not help, turning up the heat costs money." |
| Solution | 8 to 20 seconds | The product in use | Unboxing, showing, using |
| Proof | 20 to 25 seconds | Result or reviews | "Over 2,000 reviews, 4.8 stars on average." |
| Call to action | Final seconds | What the viewer should do | "Link below, free shipping right now." |
The hook can take many forms: a problem, a result, curiosity, proof or calling out an audience. Test several for the same video.
Making UGC: four routes
- Yourself. You or your team film on a phone. Free and authentic, but time-consuming, and not everyone likes being on camera.
- A creator. You hire a UGC creator. Authentic-looking, but often $100 to $450 per video, with separate rights for paid ads.
- A platform or agency. They manage the creators. Convenient, but pricier and slower.
- AI. An AI presenter creates the video in your style, in minutes. Ideal for testing many openings. See examples on our AI UGC page, and read how to build one in how to make AI video ads.
Rules for using UGC
- Recognizable as advertising. When a creator posts your product on their own account, the paid partnership must be disclosed under advertising and influencer rules. Ads from your own account are already marked "Sponsored".
- No fake experiences. A creator or AI persona must not pretend to be a real customer with a real experience when that is not the case. That is misleading.
- Label AI. Under the EU AI Act, realistic AI people must be clearly disclosed as AI since August 2, 2026.
- Agree on rights. With a creator, put in writing which channels and how long you may use the video, organic and paid.
Frequently asked questions
What is the difference between UGC and influencer marketing?
An influencer is paid to show your product to their own followers; the reach comes from their account. A UGC creator makes content you use yourself, often as an ad; the reach comes from your ad budget.
What is a UGC creator?
Someone who makes videos or photos in the style of a regular user, commissioned by brands. They do not need a large following, because the brand uses the content itself.
What does UGC cost?
A creator video typically costs $100 to $450, more through an agency. AI UGC costs a few dollars per video; in Genly a standard 30 second video is 10 credits. See our plans.
Editor
Co-founder of Genly
This article was written by Genly's AI team and reviewed by Marlon before it went live. How we work with AI: AI transparency.
