11 reasons to create UGC: benefits and results

Article updated: April 6, 2026

UGC is now one of the most effective resources in digital marketing. Consumers trust real experiences more than polished ads, and brands that integrate UGC achieve more sales, more engagement (Instagram engagement calculator) and a better brand perception.

Well, that’s what the theory says, because we have hundreds of examples of brands of all sizes telling us: “UGC doesn’t work for me…” We ask them about it, and “it doesn’t work for me” usually turns out to be a standalone video on social media that simply talks about the brand in a very commercial way. NEXT.

To avoid falling into meaningless statements—and if you’re considering creating UGC for your brand—here we explain the 10 main benefits of UGC in marketing, with real data and examples so you can understand why it should be at the heart of your strategy.

The clearest benefit of UGC is its ability to get more users to buy. According to data from Adweek, UGC ads convert up to 30% more than traditional spots. And yes, here we’re clearly talking about using videos in campaigns through UGC Ads—that is, in brands’ paid campaigns (social, SEM, display…), as well as on websites, landing pages and ecommerce stores.

Related KPIs:

• Conversion rate (CVR).
• Cost per acquisition (CPA).
• Return on ad spend (ROAS).
• Return on investment (ROI).

Measuring return on investment is key to justifying UGC spend if you work in Paid.

Basic formula: ROI = (Revenue generated – Investment) / Investment x 100

• Investment: €399 (HICARI’s ‘Pack Growth’, which includes 3–6 videos).
• Results: 10 leads (valued at €10 each) + 2 sales of €200 each = €500.

Example:

Example of a bad ad (we don’t know whether this misuse of UGC is worse than using a static image as a creative that adds nothing):

There are hundreds of studies out there, including a highly reputable one by Nielsen, stating that the vast majority of consumers trust recommendations from other people more than brand advertising. And you’re still creating corporate ads or simply using images… Because that’s how it has always been done.

UGC works because it features real customers showing authentic experiences, reducing friction in the purchase decision.

Related KPIs:

• Reduced bounce rate (web).
• Increased CTA clicks (paid, web, organic social media).
• More time on page (web).
• More views, greater reach and more shares (organic social media)

Example: a SaaS company that posts video testimonials on LinkedIn increases its demo click-through rate by 40%. Or a training provider that posts ads and organic content on social media discussing career opportunities, salaries, life at the company…

Creating content for social media is becoming increasingly complex. People on social media are there to have fun and be entertained; they don’t want a static image of a product… Users expect dynamic, natural and entertaining videos. UGC solves this challenge by providing varied, authentic content ready to use on TikTok, Instagram Reels or YouTube Shorts.

Many brands turn to typical UGC agencies or content creation agencies that only partially solve the problem, since, on the one hand, they charge a huge markup for managing and creating videos and, on the other, they limit themselves to recommending their few content creators. In this case, solutions like HICARI, Spain’s leading UGC platform, allow you to pay directly for the video and the creator you want.

Related KPIs:

• Engagement rate (likes, comments, shares).
• Organic reach / video views VS non-UGC content.
• Follower growth.
• Increase in leads / sales.

UGC not only generates more valuable content (which is already a major concern for many brands), but also increases interaction. Users comment, share and participate more when they see other “customer-users” rather than a corporate ad or a simple image… And, ladies and gentlemen, this is another key part of brand building. Getting people to share your content and interact with your brand is the pinnacle of branding.

Example: a travel brand that creates fun, inspiring and informative content with different content creators who showcase real places from home or while actually visiting them. In other words, the travel company stops using stock videos of destinations.

While monthly content management with a marketing agency, social media agency or production company can cost between €1,000 and €20,000, UGC can be produced from €399 with several ready-to-use pieces. This allows both large and small brands to maintain a constant flow of quality content.

And €390 is not a random number; it is the cost of the ‘Pack Growth’ at HICARI, which offers up to 6 videos per month + extra credit for free videos. Buuut, if you don’t want to pay for a pack, individual videos are available from €70. Sign up for free now!

Related KPIs:

• Cost per video produced.
• CPV: cost per view.
• Cost/result ratio in Ads.

Pages with UGC (reviews and videos) retain users for up to 2.6 times longer. In addition, embedded videos improve SEO by appearing in Google’s rich results. Learn more: How to do SEO with videos.

And that’s not all: you can also do SEO for Google results where only videos appear, or where videos appear in the top positions, so integrating video content into your SEO strategy is essential. Another benefit of UGC: valuable videos made by real people, because, as you can imagine, a video made with AI will never rank well.

As if that weren’t enough, you should know that good SEO gets you recommended in Gemini or ChatGPT. In other words, you need to do good SEO to appear in LLMs.

Google confirms it: if you want to appear in Gemini (GEO), you need YouTube and UGC

Related KPIs:

• Average time on page.
• Bounce rate.
• Keyword ranking.
• Video views from Google.
• Recommendation in Google AI or ChatGPT.

Example: a SaaS that adds video reviews to its landing pages gets 35% more leads than with static pages.

Seeing that other customers have already purchased creates confidence. UGC acts as immediate validation, influencing the purchase decision, and it can be used in:

1. Social media
2. Paid campaigns
3. Generic landing pages
4. PDP
5. SEO: as in the example below, creating videos to rank for the title “{brand} reviews” and appear on Google:

Example: an electronics ecommerce business with video reviews increases purchase intent among new visitors by 80%.

UGC creatives perform better in Ads, both in social ads and on Google or other channels. TikTok and Meta have confirmed that this format achieves better metrics than traditional ads.

And in case you’re considering it (you’ve probably seen a post about it on LinkedIn), making AI videos is not a solution. Here’s a real test on Meta comparing a standard UGC video with an AI video:

Related KPIs:

• Impressions.
• CPC (Cost per click).
• CTR (Click Through Rate).
• CPA (Cost per acquisition).
• ROAS (Return on Ad Spend).

UGC can be produced quickly and continuously, and adapted to different formats: reels, stories, shorts, landing pages, PDPs or emails. And yes, you’re better off doing this with a UGC platform like HICARI rather than a conventional UGC agency, thanks to the speed and agility. It also allows you to iterate on messaging without major investments.

Yes, here’s another example: a services company can launch 6 UGC videos per month and reuse them on LinkedIn and Ads, while also using some on its website and blog articles, multiplying its return at a low cost.

UGC doesn’t just attract; it also retains. By creating valuable content at every stage of the funnel, whether on social media or a website/blog, brands create a feeling of “that’s cool…”, “I want this…”, “I’m going to share it with…”. And that’s not just reach—it’s sales and retention.

Example: a gym that shares workouts recorded by its members increases its monthly retention rate by 15%.

The vast majority of brands don’t do UGC. They still work with marketing agencies or create content in-house, believing they don’t need third parties or UGC creators. They rely on stock photos or images generated in Canva. Poor companies…

UGC isn’t an extra or something like influencers… it is a strategic asset with a direct impact on key metrics: it improves conversion, reduces costs, provides valuable and branded content, increases engagement, boosts SEO and strengthens the community. Brands that integrate it into their marketing mix will be better prepared to compete in an environment where authenticity and results are what really matter.