What is UGC marketing?
UGC marketing uses content from creators or customers that brands publish on their own channels and ads. UGC creators are usually paid for content, not audience.
Definition
UGC stands for user-generated content. Originally it meant content that customers made on their own, such as reviews and unboxing videos. Today many brands also pay UGC creators to produce content in that same authentic style: product demos, reviews, tutorials and reactions.
The brand then publishes the content on its own social channels, website and, above all, in paid ads. The creator often does not post it at all.
UGC vs. influencer marketing
- Influencers are paid for their audience. UGC creators are paid for the content
- Influencer posts appear on the creator's account. UGC appears on the brand's channels and ads
- UGC creators do not need a large following
- UGC success is usually measured in ad performance, influencer success in reach and engagement
Why brands use UGC
- It looks native in social feeds, so it often performs well as a paid ad
- It is often faster and cheaper than studio production
- Brands get many variations to test hooks, formats and messages
- Real people using the product build trust
Usage rights and whitelisting
The price of UGC depends a lot on usage rights: where the brand may use the content, for how long and whether it runs in paid ads. With whitelisting, or tools such as partnership ads on Meta and Spark Ads on TikTok, the brand runs paid ads with the creator's handle or boosts the creator's own post with their permission, which often costs an extra fee.12
If an ad presents a paid creator as an ordinary customer, the FTC Endorsement Guides in the US can require the ad to disclose that connection.3
The payout side
UGC programs work with many creators at a lower fee per video, often paid on delivery and after revisions. That means a high number of small payouts, each usually needing an invoice and correct tax treatment.
How Talentir helps
Brands use Talentir to pay every UGC creator on delivery, with the invoice created automatically. See Talentir for brands
Further reading
- How to Pay UGC Creators: Rates, Rights and Payment Terms
- How to Pay for Creator Whitelisting and Paid Ad Rights
Related topics
Influencer marketing
Influencer marketing is when brands pay creators to promote products to their own audience on social media.
Creator economy
The creator economy is the market of independent creators who earn from content, and the agencies, brands, platforms and tools that pay them.
Self-billing
Self-billing means the buyer creates the invoice on behalf of the supplier, so creators do not have to write an invoice themselves.
What is a payout?
A payout is a payment a business sends to a person or company that earned money through it: a creator, artist, freelancer or partner.
Sources
Influencer marketing
Influencer marketing is when brands pay creators to promote products to their own audience on social media.
Creator agencies and MCNs
Creator agencies manage talent and campaigns for creators. Multi-channel networks (MCNs) work with many channels, usually for a share of their revenue.