DTM #6: UGC formats are not profitable for my UA campaigns

User Acquisition myth #6: UGC formats are not profitable for my UA campaigns

One might think that UGC formats are too expensive, especially when dealing with a limited budget for user acquisition campaigns. This misconception is often linked to the association of UGC with content created by influencers with large communities, which can quickly become costly.

In reality, UGCs are now offered by all types of creators and have become an essential format in UA. They have proven their effectiveness for brands in various sectors. They indeed meet diverse needs while remaining flexible in terms of budget.

1. Distinguish between influencer and creator

When discussing UGC formats in user acquisition, we’re not referring to mega-influencers or celebrities sharing content with their communities. Instead, we’re talking about content creators, where the number of followers or the theme of the account isn’t really crucial.

Unlike influencers, the logic isn’t for the creator to systematically post content on their feed and broadcast it to their community so that the brand benefits from visibility but simply to produce a video.

The main goal is to generate performance (install, ROAS, ROI, etc.) by producing authentic content in line with the platform’s codes where the advertisement will be displayed. This typically involves face-cam videos demonstrating the application, showcasing a specific product, creating a tutorial, unboxing, or any other format.

There is a great diversity among creators with very different profiles and pricing, unlike influencers who have higher rates due to their larger community and visibility. Thus, everyone can find a solution adapted to their budget.

2. Performance logic

Similar to other creatives in user acquisition, whether static or videos, a performance-oriented approach is adopted for UGC formats. Actions taken within the application during campaigns can be tracked through MMPs. This makes it possible to assess whether a UGC advertisement is performing well or not, and it can be paused if necessary to ensure profitability.

Therefore, when producing UGC videos, creators must be briefed with a performance mindset, to convert with these ads. It’s crucial to provide clear guidelines to creators to align with platform norms and to select those who will ensure video conversion.

This performance logic enables testing UGC formats with less expensive profiles, engaging a smaller budget. If the effectiveness of UGC is confirmed, it becomes possible to allocate larger financial resources to deploy a greater number of UGC creatives and explore diverse profiles in different languages. For example, for some of our clients, the current distribution is approximately 80% UGC and 20% motion content.

Thus, the performance logic remains essential for UGC formats, which are managed in the same way as other formats in UA.

3. Proven Results for Addict Mobile Clients

Despite being relatively new, UGC formats have already proved their effectiveness. Their spontaneous nature, created by creators whom users can relate to, brings authenticity to the content, enhancing trust. In fact, 72% of users believe that customer reviews and testimonials are more credible than a brand’s own communications about its products. (State of Social User Generated Content). This enhances credibility and positively influences their perception of the brand.

In a user acquisition approach, UGC formats allow, among other things, the diversification of the creative mix, reducing the phenomenon of ad fatigue.

Ultimately, these formats can even help decrease acquisition costs. At Addict Mobile, we’ve implemented UGC for numerous clients in various sectors (producing over 600 UGCs in 2023). This has allowed us to observe:

• A 15 to 35% overall decrease in cost per action (CPA).
• For one of our photography clients, a 20% decrease in CPI and a 9% increase in conversions across all platforms.
• For one of our cashback clients, a 55% decrease in CPA between traditional creatives and UGC on TikTok.
• Even in the gaming vertical, the use of UGC content in our Meta campaigns led to a 3-point increase in ROAS.

Don’t hesitate to contact us if you need help leveraging UGC formats