UA Creative Lab #1: The Secret Formula for UGC that converts

Over the past few years, the rise of social platforms has pushed brands to rethink their advertising strategies. In particular, with TikTok’s rapid ascent since 2019, user-generated content (UGC) has become increasingly popular and strategic. Brands are now turning to content creators to promote their products and services without hesitation. 

So, how do you create high-performing UGC? Here’s our (not-so-secret) formula for UGC that converts and revenue. 

UGC Boosts App Acquisition Campaign Performance 

User-Generated Content (UGC) refers to content created by consumers about a brand, providing an authentic endorsement. This type of content, ranging from articles and videos to social media posts, will be explored here through the lens of the TikTok format. 

When used in acquisition campaigns, UGC is created with a performance-driven approach rather than for branding purposes. It’s important not to confuse it with influencer campaigns, which focus on brand awareness and image building. Incorporating UGC into acquisition campaigns enhances performance for several key reasons: 

Refreshing Ads: Keeping creatives fresh is essential for maintaining campaign profitability and avoiding Ad Fatigue. 

Reaching a Specific Audience: Unlike traditional formats, UGC blends naturally into the feeds of platforms where it’s distributed, TikTok, Snapchat, and Meta’s Reels placement. These formats are particularly popular among specific audience segments, allowing brands to reach a more diverse audience compared to classic ad formats. 

Boosting Visibility: When content is posted on a creator’s account, brands also gain exposure to their community. Some major platforms have even introduced new ad formats based on UGC, such as Meta’s Branded Content and TikTok’s Spark Ads. However, it’s important not to confuse UGC with influencer marketing. While UGC helps strengthen brand credibility within a creator’s audience, its goal isn’t to target a specific demographic but rather to emphasize authenticity. 

Increasing Conversions: UGC has helped improve the performance of our acquisition campaigns across different verticals: 

• For one of our photo app clients, we observed a 20% decrease in CPI and a 9% increase in conversions across all platforms. 
• For one of our cashback clients, CPA dropped by 55% when comparing traditional creatives to UGC creatives on TikTok. 
• Even in the gaming vertical, integrating UGC into our Meta campaigns led to a 3-point increase in ROAS. 

Best Practices for UGC that converts

Follow social platform codes: Portrait format and dynamic pacing are essential. Consider platform-specific margins, ensure good lighting and audio quality. For example, adding a voice-over can increase conversion rates by 12%. 

Leverage signature graphic elements: Incorporate text overlays, effects, filters, stickers, and emojis. Catchy music, creative transitions, and subtitles also boost performance. 68% of platform users say they are more likely to remember a brand if its videos feature music they enjoy. 

Create compelling hooks: The first 3 seconds are crucial to capturing the audience’s attention. This can be done through a question, a bold statement, or a strong visual hook. 

Develop the best possible script: The goal of UGC is to drive action, making the message key. Testing different narratives, music, and video lengths helps identify the most effective combinations. Additionally, “live” actions (testing a product, playing a game, etc.) can increase click-through rates by 25% compared to motion or static videos. 

Stay on top of trends: Keeping up with the latest trends in hooks, editing styles, and content types is essential. Being quick to adapt allows brands to capitalize on trends. UGC that leverages a trending format is far more likely to perform well when published promptly. 

Mistakes to Avoid for Optimal Performance

Videos longer than 45 seconds: Platforms have content length limits, and performance tends to drop beyond 45 seconds. Sticking to optimal durations is key. 

Overly scripted videos: Authenticity is crucial, and users can tell the difference. Overly scripted content may be perceived as a direct ad, making it less convincing and impacting campaign performance. 

Too many criteria for creator selection: Setting too many criteria can slow down the selection process, extend production timelines, and increase costs. The key factors to prioritize are age, gender, and location. 

Other Key Stats: 

• 149% increase in conversion rate when the video includes the price, a product demonstration, or a promotional offer. 
• 87% increase in conversion rate when combining a price with a call-to-action. 
• 5-10 words per second result in 2x higher brand awareness. 

Key Insights

1. UGC is now a crucial format as it enhances brand credibility and awareness, leading to better performance. 

2. Unlike influencer marketing or branding, UGC is not about the creator’s audience size but rather their ability to produce authentic and engaging content that strengthens brand trust. 

3. Authenticity is key. It ensures that the message resonates with and is remembered by consumers. 

4. Keeping up with platform trends and giving creators creative freedom is essential to staying relevant in a rapidly evolving industry. 

5. Integrating UGC into a diverse strategy allows for ongoing testing and continuous algorithm optimization.