Glossary

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.

General information only, not legal, tax, financial or investment advice. Laws, rates and thresholds change often and depend on your situation, so check the official sources below and confirm with a qualified advisor before you act. Last reviewed September 2026.

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

Sources

  1. Meta: Partnership ads and the Instagram creator marketplace ↩

  2. TikTok Ads Manager: About Spark Ads ↩

  3. FTC Endorsement Guides (16 CFR Part 255) ↩