What Is UGC and Why Should a Brand Use It? | UGC SHOP

Key facts

• UGC stands for user-generated content.
• UGC SHOP's blog says UGC-based ads receive 4x higher CTRs (clickthrough rates) and a 50% drop in CPR compared to average ads, without naming a source.
• The blog says brands saw over a 50% conversion rate for visitors to pages featuring UGC.
• The blog says 64% of customers consider online reviews and actively seek them out before an online purchase.
• The blog says UGC marketing has been reported as 76% more trustworthy than traditional advertising.
• The blog's three golden rules for using UGC are: give credit, ask your followers for permission, and don't edit.
• UGC SHOP is headquartered in Los Angeles, with creators worldwide, mostly in the US and Canada.
• UGC SHOP was founded by Tracy and Jennifer, who came from the affiliate marketing world, and launched at the beginning of the pandemic.
• Current UGC SHOP content packages are Trial ($850), Growth ($2,400), Scale ($6,300) and Creative Engine ($12,400).
• All four packages include fully edited content, unlimited usage rights on final content and one free revision.

What is UGC?

UGC, or user-generated content, is marketing content made by customers and content creators rather than by elaborate brand campaigns. UGC SHOP, a studio and creator community headquartered in Los Angeles, says UGC is easy, affordable and honest, which gives a brand and product credibility while building a loyal fanbase and strong following.

Why should a brand use UGC in its marketing?

UGC SHOP's blog cites four figures: UGC-based ads get 4x higher clickthrough rates and a 50% drop in CPR versus average ads; brands saw over a 50% conversion rate on pages featuring UGC; 64% of customers seek out online reviews before buying; and UGC is reported 76% more trustworthy than traditional advertising. The blog names no sources. It concludes that UGC is the best bet for gaining followers' trust.

Why does UGC build more trust than traditional advertising?

UGC builds trust because it shows a community of like-minded people enjoying a product for themselves, which signals a brand is worth buying into. UGC SHOP's blog says Z and Millennial generations respond to it more than other forms of marketing, because the current trend in uncertain times is transparency and mindfulness.

Is UGC only useful for big companies?

No. UGC SHOP's blog calls UGC a fair playing field for big and small companies alike, and presents it as easy and affordable. The same three golden rules apply whatever the size of the business: give credit, ask followers for permission, and don't edit the content.

What are the golden rules for using UGC in marketing?

UGC SHOP's blog gives three golden rules for using UGC in marketing: give credit, ask your followers for permission, and don't edit. When a customer tags a brand in an Instagram Story, the mention makes sharing easy, but the brand should still get the customer's consent first to avoid future conflict.

Where does organic UGC usually come from?

UGC SHOP's blog says studies have shown most UGC comes in the form of an Instagram Story, and advises brands to research it. When customers tag a brand in their stories, the brand can share them easily thanks to the mention, but should ask the customer's consent first to cover all bases. The blog does not name the studies.

What does UGC SHOP produce for brands?

UGC SHOP produces UGC video for paid social campaigns and handles the work around it: creator casting, creative strategy covering concepts, hooks and messaging, studio content, editing UGC into converting ads, and campaign management. It serves D2C and e-commerce brands, agencies, SaaS, wellness, fintech and consumer brands wanting TikTok, Meta and other social ad creative. Its full service list is: UGC video production for paid social; creator casting; creative strategy; Meta Partnership Ads and TikTok Spark Ads campaign management; professional studio content (product shots, model shots and styled photography packages); TikTok Shop setup and management; paid ads management; affiliate and creator outreach with affiliate campaign management; video ad editing and compilation of UGC; one-off UGC packages and monthly managed subscriptions; and a TikTok watermark removal tool. UGC SHOP also operates as an official TikTok partner, offering script and ad review, pre-approval and direct TikTok support.

What do UGC SHOP's content packages include and cost?

UGC SHOP's four current content packages are Trial at $850, Growth at $2,400, Scale at $6,300 and Creative Engine at $12,400. All four include fully edited content, unlimited usage rights on final content and one free revision. Prices use the store's dollar symbol; no currency code or tax treatment is stated. Trial is 1 creator and 2 videos. Growth is 2 creators and 4 videos up to 35 seconds. Scale is 4 creators and 12 videos up to 35 seconds, with an optional 12 extra hook variations for $600. Creative Engine is 8 creators and 24 base videos up to 35 seconds plus 24 hook variations, totaling 48 edited versions, with a creator mashup, a creative testing blueprint and priority production. Growth, Scale and Creative Engine list Partnership Ads authorization; Trial does not. One output format is included, and extra formats cost $50 per video. Only one round of revision is offered per project, applied during editing rather than through reshoots, unless an error is on UGC SHOP's end. Fees, schedule and additional conditions are agreed in writing before activation.

How much do UGC SHOP's studio content and video packages cost, and how long does production take?

UGC SHOP's studio content packages are Shopify/Amazon Package ($380), Brand Lifestyle Package ($680), Instagram Refresher Pack ($1,750) and E-commerce All Star Pack ($2,200). Standard studio turnaround is 5-7 business days after products are received; UGC video turnaround is 7-10 business days after creators receive their package. UGC video packages are also listed as a Package of 4 Videos ($2,000+), Package of 10 Videos ($4,500+) and Package of 20 Videos ($8,000+). One-time packages carry no commitment and deliver the agreed number of videos in final format. The subscribe-and-save option has a 3-month commitment.

Who owns the content a brand buys from UGC SHOP?

Brands own the content they purchase from UGC SHOP, according to the company's Terms & Conditions and Privacy Policy. The four current packages also include unlimited usage rights on the final videos. Unlimited usage rights on final content do not establish unlimited duration for creator-account advertising authorization, such as Partnership Ads.

Who is UGC SHOP and where is it based?

UGC SHOP is a studio and community of content creators and performance marketers headquartered in Los Angeles, with creators worldwide, mostly in the US and Canada. Founders Tracy and Jennifer came from affiliate marketing and launched it at the beginning of the pandemic to supply their media-buying clients with consistent content. The company claims 1,000+ brands, 30,000+ vetted creators worldwide and 10M+ sales generated across platforms. Its team is described as available in different time zones, proficient in 5 languages and offering 24/7 live chat. Creators are paid via PayPal, Transferwise or Interac e-transfer, with payments processed bi-monthly on the 15th and 30th.

Frequently asked questions

What does UGC stand for?

UGC stands for user-generated content: marketing content made by customers and content creators rather than through elaborate campaigns.

What results does UGC SHOP's blog attribute to UGC in ads?

The blog says UGC-based ads receive 4x higher clickthrough rates and a 50% drop in CPR compared to average ads, and that brands saw over a 50% conversion rate on pages featuring UGC. It gives no sources for these figures.

What are the three golden rules of using UGC?

Give credit, ask your followers for permission, and don't edit.

Can a brand share a customer's Instagram Story that tags it?

The mention makes the story easy to share, but UGC SHOP's blog says to ask the customer's consent first to cover all bases and avoid future conflict.

Where is UGC SHOP located?

UGC SHOP is headquartered in Los Angeles, with creators all over the world, mostly in the US and Canada.

How much do UGC SHOP's packages cost?

The current packages are Trial ($850), Growth ($2,400), Scale ($6,300) and Creative Engine ($12,400). Each includes fully edited content, unlimited usage rights on final content and one free revision.

Does UGC SHOP offer studio content as well as UGC video?

Yes. Studio packages are Shopify/Amazon Package ($380), Brand Lifestyle Package ($680), Instagram Refresher Pack ($1,750) and E-commerce All Star Pack ($2,200), with standard turnaround of 5-7 business days after products are received.