Ad Strategy
Ad Strategy
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July 21, 2025

UGC Video Ad Effectiveness

No matter where you go or how you spend your time, it’s almost certain you’ve seen an increase in user-generated content (UGC). This trend has been accelerated by AI and the fact that UGC video ad effectiveness is high, offering better click-through rates and higher conversions.

 

Whether you want to use an AI UGC video generator or get in front of the camera yourself, creating your own advertising content can help you get the results you want.

 

Why Use UGC Video Ads?

 

‘UGC’ refers to anything created by the same people that use a product. This can range from an average consumer writing reviews to a social media influencer being paid to recommend a company. It can take many forms, but it often gets good results:

 

  • The click-through rates (CTRs) of UGC ads are four times higher than average.
  • UGC ads can provide a 50% drop in cost-per-click (CPC).
  • UGC ads boast 29% more conversions than ads without it.

 

These numbers are often attributed to consumers feeling connected to the creator, either because the consumer has grown to trust the creator over time or because the consumer sees themself in the creator’s style, class, or personality.

 

How to Pick a Winner

 

When you’re creating UGC video ads, you have to find what works. One way to do this is by producing a lot of content and focusing on what’s getting engagement and what isn’t. Here are some metrics to look out for:

 

  • Hook rate: How long do people stay with your ad when they see it? If viewership drops off after two or three seconds, something has to change.
  • Hold rate: Now that your viewer is hooked, are they watching the whole video?
  • Conversion: How many of the ads you’re putting into the world are leading to a profit? If your video has a clear call-to-action (CTA), did the viewer follow through?

 

Telling a Story

 

One of the problems with AI content creation can be lack of personality. You can fight that by remembering that people love narratives. Start with the discovery story–how the content creator came upon the product or business. Then, touch on two points: an issue in the creator’s life and how this product addressed that issue.

 

People naturally connect to stories, even ones as simple as, “I had this issue, and this is how I fixed it.” And remember: once you find a UGC video ad with a strong story that works for you, scale carefully. You can even experiment with surf scaling.

What Makes UGC Video Ads So Believable?

Authenticity is the core reason UGC video ads have higher ROAS, but what exactly makes something feel authentic? It’s about how the message is delivered and perceived.

People respond to imperfection. A UGC video that feels a little unscripted, where someone stumbles on a word or laughs mid-sentence, can come across as more trustworthy than a polished, high-budget commercial. Consumers are flooded with content every day, and their ability to detect fake or overly salesy messaging are more sensitive than ever. 

If you're creating UGC content using AI-generated avatars or voices, you can still maintain a sense of believability by focusing on relatable language, conversational pacing, and scenarios that mirror your customer’s life. When you get it right, even synthetic creators can offer that ‘real person’ feel audiences connect with.

 The Expert in Your Corner

 

Future trends in AI UGC will continue to shift as technology changes, and you don’t want to get left behind. Gethookd can tell you what’s working for your competitors and how you can use that to find what works for you. Start your free two-week trial with Gethookd today!