UGC-first video ad service for e-commerce

E-commerce brands are turning to user-generated content (UGC) video ads to build trust, boost engagement, and drive higher sales. Why? Because shoppers trust real customer stories more than polished ads. UGC video ads are cost-effective, relatable, and deliver better results - like 4x higher click-through rates and 50% lower cost-per-click compared to traditional ads.

Here’s what makes UGC video ads a game-changer:

• Trust Factor: 92% of consumers trust UGC over brand-created content.

• Higher Conversions: UGC increases conversion rates by up to 161%.

• Engagement Boost: UGC videos get 10x more engagement than static content.

• Budget-Friendly: UGC ads cost a fraction of traditional campaigns.

From Glossier’s billion-dollar growth using customer selfies to GoPro’s viral user videos, brands are leveraging UGC to connect with audiences in a way that feels personal and credible. Plus, tools and strategies like hashtag campaigns, micro-influencer partnerships, and AI-powered platforms make it easier than ever to scale UGC efforts.

If you’re in e-commerce, UGC video ads might just be the edge your brand needs to stand out and convert browsers into loyal customers.

The Ultimate UGC Ads Guide for Ecommerce in 2025

Why E-commerce Brands Need UGC Video Ads

In the crowded world of e-commerce, grabbing attention is no easy feat. User-generated content (UGC) video ads have become a powerful tool for brands trying to stand out. They address three major needs: earning customer trust, boosting engagement through relatable content, and driving higher conversion rates. Let’s break down how UGC video ads meet these challenges head-on.

Building Customer Trust

Trust is the backbone of online shopping. Without being able to physically interact with products, shoppers turn to social signals to guide their decisions. UGC video ads help bridge this gap by showcasing real people sharing their authentic experiences with a product.

What makes UGC so effective? It feels raw and genuine - like hearing from a friend rather than a polished corporate ad. When potential customers see others who look like them using and loving a product, their hesitation often fades.

Take Tushbaby, for example. The brand used videos of real parents demonstrating its baby carriers while sharing their honest feedback. This approach struck a chord with viewers, leading to over $500,000 in sales in just seven months.

Increasing Engagement and Social Proof

UGC video ads don’t just build trust - they also grab and keep attention. These ads are watched 10 times more than traditional branded content, and brands that incorporate UGC see engagement rates jump by 28%.

Why does UGC perform so well? It’s relatable. When people see content created by someone like them, they’re more likely to engage - watching, commenting, and even sharing. In fact, engagement can increase by up to 60% when UGC is used. It feels less like a sales pitch and more like a recommendation from someone they trust.

This is especially true for younger audiences. Around 58% of Gen Z shoppers say they’ve purchased beauty, wellness, or health products after seeing UGC. Growing up immersed in social media, they naturally trust peer recommendations over slick corporate messaging.

GoPro has mastered this concept. Instead of relying on high-budget studio shoots, the brand features videos created by its users - think skydivers, surfers, and hikers. These real-life adventures resonate deeply with viewers, inspiring them to imagine their own epic moments.

The impact of UGC extends beyond social media. A whopping 91% of shoppers say their buying decisions are influenced by social content. What’s more, embedding UGC on websites can increase the time visitors spend on the site by 300%, giving brands more opportunities to convert browsers into buyers.

Better Conversion Rates and Returns

The ultimate goal of any marketing strategy is to drive sales, and UGC video ads excel here too. Many e-commerce brands see conversion rates improve by up to 161% when UGC is added to product pages or paid ads. Websites that include social content experience a 140% boost in conversions compared to those relying solely on brand-created material.

Dr. Squatch provides a great example of this in action. By integrating customer reviews and testimonials into shoppable videos, the brand saw a significant increase in revenue per session. Letting satisfied customers share their stories proved far more effective than traditional product descriptions.

There’s also a ripple effect with UGC. Happy customers often become content creators themselves, providing brands with ongoing, cost-effective marketing that extends the value of initial campaigns.

"If others are buying this, maybe I should too." - Social Media Examiner

This psychological nudge, rooted in social proof, becomes even more compelling in video form. Seeing real customers using a product in motion creates an emotional connection that static ads simply can’t match. The result? Higher conversion rates and stronger customer loyalty, as buyers feel more connected to the brand.

How to Create UGC Video Ad Campaigns

Crafting impactful UGC (User-Generated Content) video ad campaigns requires a thoughtful approach that blends authenticity with your brand’s identity. The process involves three key steps: gathering quality content, refining it while preserving its natural appeal, and ensuring all legal aspects are addressed. Here’s how to create campaigns that resonate with your audience and drive results.

Finding and Collecting UGC

The backbone of any successful UGC campaign is the content itself, and that starts with encouraging your customers to share their experiences. To do this effectively, you need to create opportunities for them to engage.

One way is through hashtag campaigns. Design a unique and memorable hashtag that invites users to showcase your product in action. For instance, Pura Vida included their branded hashtag in post-purchase emails, along with discount codes. Customers who used the hashtag could be featured on the brand’s social media, creating a steady stream of content.

Contests and giveaways are another powerful tool. WHISKAS® took this to the next level by transforming Amazon delivery boxes into fun spaces for cats, paired with a custom hashtag (#CatsInBoxes2.0) and a QR code linking to their Amazon store. This clever idea led to a 70% increase in ad-attributed sales on Amazon.

Collaborating with micro-influencers is also effective. These creators have smaller but highly engaged audiences, making their content feel more relatable. On average, paid UGC content costs around $150 to $200 for a 30-second video. Additionally, you can leverage your existing customer base by sending early access samples to loyal fans or searching platforms like TikTok and Instagram for relevant hashtags to identify potential contributors.

"UGC is today's version of word of mouth, and it's one of the most powerful tools your brand can use to build trust and drive growth." – Kinjal Shah, Copywriter, Bloomreach

Once you’ve collected raw content, the next step is refining it for your campaigns.

Editing UGC for Ad Campaigns

Editing is where raw UGC transforms into polished content that aligns with your brand while retaining its authentic charm. The goal is to enhance, not overproduce.

Focus on keeping the original, natural feel intact. The imperfections that make UGC relatable are often what draw viewers in, so avoid excessive editing that could make it feel staged.

At the same time, subtle adjustments can help maintain brand consistency. Add small touches like logo watermarks, consistent color grading, or text overlays to create a cohesive look without losing the genuine vibe of the content.

Technical optimization is crucial. Adjust video aspect ratios for different platforms, fine-tune audio levels, and tailor video lengths for specific ad placements. These tweaks are essential since UGC video ads tend to get 10 times more views than traditional branded content.

Incorporate your call-to-action (CTA) naturally. Instead of abrupt promotional interruptions, consider using text overlays at key moments or weaving subtle prompts into the storyline. A/B testing can also help fine-tune your content. Experiment with different opening hooks, CTA placements, or background music to see what resonates best. UGC reviews, for example, have been shown to increase conversions by 144% and boost revenue per visitor by 162%.

After editing, it’s critical to address the legal aspects of using UGC.

Legal Requirements and Usage Rights

To protect your brand and respect creators, you must navigate the legal side of UGC carefully. If you didn’t create the content, you don’t automatically own it.

Always secure explicit permission before using any UGC in your campaigns. For paid ads, this involves formal agreements that outline usage terms, such as how long the content will be used, where it will appear, and whether it’s for organic posts or paid campaigns.

Pay attention to copyright and likeness rights. Using content without proper consent can result in legal issues, including copyright infringement or publicity rights violations. Transparency is also key - if you’re compensating creators, disclose this relationship in line with advertising guidelines.

Data protection laws like GDPR and CCPA add another layer of responsibility, especially if you’re collecting personal information from creators. Many creators also appreciate being credited for their work, which can encourage them to participate in future campaigns.

Finally, establish clear content moderation policies to address risks associated with problematic submissions. A proactive approach ensures your brand stays protected while maintaining positive relationships with creators. Legal compliance isn’t just about avoiding risks - it also builds trust, as nearly 90% of consumers find UGC trustworthy.

With the legal groundwork in place, you’re ready to test and refine your UGC campaigns to maximize their impact.

Testing and Improving UGC Video Campaigns

Running successful UGC (user-generated content) ad campaigns requires a systematic approach grounded in data. Testing is key to identifying which campaigns deliver results and which ones fall short. By consistently analyzing and refining your strategy, you can make the most of your budget and maximize performance.

A/B Testing UGC Ad Variations

A/B testing is a powerful way to compare different ad variations and see what resonates with your audience. The key is to focus on one variable at a time - whether it’s the ad format, copy, or visual style. For instance, you might test carousel ads that showcase multiple product angles against single-image ads to determine which grabs more attention.

Video length is another factor worth testing. Short clips under 15 seconds often work well on platforms like Instagram Stories and TikTok, while longer product demos may perform better in traditional feed placements. Keep in mind that 85% of social media videos are watched without sound. This makes it crucial to test silent versions with captions alongside those with audio.

Don’t overlook the impact of different calls-to-action (CTAs). For example, inBeat Agency found that TikTok videos featuring user testimonials significantly boosted engagement. As they explain:

"A/B testing eliminates guesswork by helping you identify what truly engages your audience." - inBeat Agency

Before diving into paid campaigns, test your UGC organically to gather baseline data. This information will help you make smarter decisions when scaling up and investing in paid ads.

Important Metrics to Monitor

Tracking the right metrics is essential for turning raw data into actionable insights. Here are four key areas to focus on:

• Engagement: Look at likes, shares, comments, and interaction rates. UGC can increase engagement by as much as 50%.

• Reach: Monitor impressions, views, and overall visibility to understand how far your campaign is spreading.

• Conversion: Pay attention to click-through rates (CTR), conversion rates, and cost-per-acquisition (CPA). For example, NielsenIQ reported a 75% drop in CPA for TikTok UGC ads.

• Viewer Retention: Analyze metrics like average watch time and bounce rates to see if your content keeps viewers interested.

Some brands using AI for UGC analysis have seen ROI grow by as much as 30%.

Using Data to Improve Results

To keep your UGC campaigns effective, continuous testing and analysis are a must. Start by comparing your results to industry benchmarks - 87% of businesses now use some form of UGC in their marketing. Tools like Google Analytics, social media dashboards, and video analytics software can help you track performance across platforms.

Identify patterns in your best-performing content. For example, Hurom partnered with inBeat Agency to shift their messaging from discounts to health-focused UGC, cutting CPA by 36% and doubling their return on ad spend within a year. Similarly, Hopper worked with inBeat to streamline their UGC creation process, reducing CPAs and avoiding ad fatigue on TikTok. By acting on real-time data, you can adapt quickly to changing trends.

As Ritesh Kewlani, Head of Product Marketing at Firework, puts it:

"Measuring video marketing success goes beyond views. Discover the top video marketing metrics that matter most for improving engagement, conversions, and ROI - metrics your competitors may be overlooking."

Dive into demographic data to tailor your content for specific audience segments. Use advanced analytics to monitor performance, refresh ad creatives when metrics decline, and incorporate customer feedback into your strategy. With these steps, you can build a scalable UGC campaign that drives consistent growth.

Scaling UGC Campaigns for Business Growth

Once you've nailed down successful testing and fine-tuned your strategies, it's time to scale up your user-generated content (UGC) efforts. For growing e-commerce brands, this means implementing automated systems that can handle large volumes of content while maintaining consistency. The goal is to seamlessly integrate UGC into your marketing ecosystem and work with experts who know how to scale video content effectively. With the groundwork in place, scaling becomes a powerful way to drive business growth.

Automating UGC Collection and Production

Automation transforms how businesses manage UGC. By using automated tools, brands can collect, organize, and process UGC without the chaos of manual workflows - something that can quickly become unmanageable as businesses grow.

Start by defining clear goals and content guidelines. Know exactly what kind of content fits your brand image, and set up systems to track participation automatically. This ensures that every piece of content aligns with your brand identity.

Modern automation tools also make it easier to create personalized, relatable content that builds trust and improves conversions. For instance, Tagshop's AI-powered platform simplifies the process by exporting platform-ready UGC videos and enabling one-click posting to Instagram, TikTok, YouTube, or Meta ads. Maggie Swift, Co-Founder and CEO of Unframed Digital, highlights how tools like these streamline UGC workflows.

These tools also take care of customer rewards and content moderation. They ensure everything stays on-brand while tracking participation across multiple platforms. Contributors receive recognition or incentives, encouraging them to keep creating content. Meanwhile, your team can focus on strategic growth instead of being bogged down by repetitive tasks.

The benefits go beyond convenience. Angel Sanchez, Owner & Photographer of Wanderlust Portraits, shares how automation has helped his business:

"TINT's AI-driven moderation and content rights management save dozens of hours, especially during high-volume travel seasons when customers are sharing in real time... For example, our campaign sharing real client vacation stories through TINT increased Instagram saves and led to at least five direct booking inquiries each month, providing a strong indicator of UGC's value."

Adding UGC to Marketing Systems

Once you've automated UGC collection, the next step is to weave it into your broader marketing strategy. Successful brands don’t treat UGC as a stand-alone effort - they integrate it across all channels for maximum impact.

Email marketing benefits significantly from UGC. Including real customer photos, reviews, or testimonials in your emails can boost click-through rates by up to 78%. The trick is to make these stories feel natural and authentic, not like forced promotional content.

Product pages become more trustworthy when they include user-generated content. Automation tools can help pull in relevant UGC and display it alongside product descriptions. In 2022, websites featuring UGC saw a 3.8% higher conversion rate, and users who engaged with UGC were 102.4% more likely to make a purchase.

Social media platforms require a tailored approach to repurpose UGC effectively. Each platform has unique requirements, so the same video might be adapted into a 15-second Instagram Story, a longer TikTok post, or a Facebook carousel.

Paid advertising campaigns also see a huge boost from UGC. Ads featuring UGC have 4x higher click-through rates and cost 50% less per acquisition compared to traditional ads. A great example is Parachute, a direct-to-consumer bedding brand, which used UGC in retargeting campaigns to achieve a 35% higher click-through rate and a 60% lower cost-per-click compared to standard ads.

The omnichannel approach ties everything together. Nordstrom’s #OOTD hashtag campaign is a perfect example - it uses UGC across social media, websites, and even physical store displays to create a cohesive customer experience.

How OKAD Agency Supports UGC Campaign Growth

Scaling UGC campaigns often requires expert guidance, and that's where OKAD Agency comes in. They specialize in helping e-commerce brands grow their video content efforts, particularly in sectors like wellness, health, education, fintech, and lifestyle.

Their video production services include everything from UGC videos to viral TikToks, Instagram Reels, and carousel designs. This ensures your content is optimized for all major platforms while maintaining consistent messaging.

OKAD also excels in creative strategy and execution, handling everything from brainstorming concepts to editing final videos. This allows your team to focus on other priorities while ensuring your UGC campaigns remain polished and effective.

Branding integration is another key focus. As your UGC efforts grow, maintaining a consistent brand identity across hundreds of pieces of content becomes critical. OKAD ensures that every piece aligns with your visual and messaging guidelines.

Their multi-service approach combines branding, web design, social media marketing, and video production under one roof. This eliminates the hassle of coordinating between multiple vendors, streamlining the scaling process.

Finally, their performance-driven content creation prioritizes results. Instead of focusing solely on engagement metrics, OKAD produces videos that directly contribute to revenue growth - a must for any business looking to scale successfully.

With 79% of people saying UGC influences their buying decisions and 86% of consumers trusting brands that share user-generated content, partnering with experts who understand both the creative and technical sides of scaling is essential for long-term success.

Getting Started with UGC for E-commerce Success

User-generated content (UGC) can be a game-changer for e-commerce. Why? Because it builds trust and boosts revenue. In fact, 92% of consumers trust organic content, and shoppers who engage with UGC are 144% more likely to convert, generating 162% higher revenue per visitor. For brands ready to tap into this potential, success lies in thoughtful planning, genuine engagement, and smart partnerships.

Start by reaching out to your most loyal customers - those who already love your products and make regular purchases. A personalized approach works best here. Tailor your outreach to acknowledge their preferences and experiences. This not only strengthens your relationship with them but also encourages more meaningful participation.

Next, establish clear and measurable goals for your UGC strategy. Are you aiming to boost brand awareness, generate leads, or drive direct sales? Once your objectives are set, provide clear content guidelines to your audience. For example, using a branded hashtag helps collect submissions in one place. Keep in mind that 53% of consumers prefer having specific instructions when creating content, so balance structure with creative freedom.

Make it easy for customers to participate. Encourage them to leave reviews, run contests, or offer incentives like discounts or loyalty points. A great example of this is Pura Vida. They include their hashtag #puravidabracelets and discount codes in post-purchase emails, which not only inspires UGC but also builds a sense of community among their customers while driving repeat sales.

Before using any content, always secure explicit consent from the creators. Focus on sourcing high-quality UGC that features your products authentically, and make sure to credit the creators appropriately.

UGC works best when it’s integrated across all your marketing channels. Don’t treat it as a one-off effort. Feature it on product pages, weave it into email campaigns, and use it in paid ads. Brands that integrate UGC into their marketing strategies see engagement rates jump by 28%.

Once you’ve mastered these basics, scaling your UGC efforts can take your brand even further. Partnering with experts can help streamline the process. For instance, OKAD Agency specializes in UGC video production, offering services that cover everything from content creation to branding integration. Their expertise allows e-commerce brands to focus on growth while ensuring professional, impactful results.

"An e-commerce site is really good at selling me something I already know I want to buy… but what it's missing today, which social is really good at, is that ability to shop and be inspired and really discover." - Liz Griffin, BazaarVoice

With nearly 90% of consumers viewing UGC as the most trustworthy form of content, the real question isn’t whether to embrace a UGC strategy - it’s how soon you can get started. Acting now helps your brand build the authentic connections that are key to long-term e-commerce success.

FAQs

What are the best ways for e-commerce brands to inspire customers to create and share user-generated content (UGC) for video ads?

E-commerce brands have a great opportunity to encourage customers to create and share user-generated content (UGC) for video ads by keeping the process enjoyable, straightforward, and worthwhile. One effective approach is to run contests featuring branded hashtags or invite customers to share their personal experiences with your products through engaging campaigns. Showcasing this content on your product pages or social media platforms not only creates a sense of community but also adds a layer of authenticity that can inspire others to participate.

To boost engagement, consider offering incentives like discounts, special perks, or even public shoutouts. Make sure to provide clear submission guidelines to maintain content quality and ensure everything aligns with your brand. Don’t forget to secure necessary permissions from contributors. By following these steps, you can tap into UGC to craft compelling and relatable video ads that connect with your audience and drive meaningful results.

What legal considerations should e-commerce brands keep in mind when using user-generated content in their marketing campaigns?

When incorporating user-generated content (UGC) into marketing, e-commerce brands need to secure explicit permission from the content creator to steer clear of copyright issues. By default, UGC is protected under copyright law the moment it’s created, making consent a non-negotiable step.

Additionally, brands must consider privacy laws that govern the use of personal data in UGC, as well as rights of publicity, which protect individuals from the unauthorized use of their image or identity. Ignoring these legal considerations can lead to claims or financial penalties. To keep your campaigns on solid legal ground, always establish clear agreements and ensure compliance with relevant local laws.

Why is user-generated content (UGC) more effective than traditional advertising for e-commerce brands?

User-generated content (UGC) has become a more budget-friendly and engaging option compared to traditional advertising in e-commerce. Brands using UGC often see much lower cost-per-click (CPC) rates and can achieve up to 4 times higher click-through rates, making it a smart way to stretch advertising dollars further.

Beyond cost efficiency, UGC helps build trust and credibility with consumers. Studies reveal that 86% of shoppers are more likely to trust a brand that shares real customer experiences, and 74% of people turn to social media for guidance on what to buy. By showcasing genuine customer stories, UGC creates stronger connections and sparks higher engagement than conventional ads ever could.

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