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Podcast: Brands don’t want influencers. They want cheap ads disguised as UGC

In short

  • Brands prioritize return, conversion and scalability over reach and visibility.
  • UGC makes it possible to create multiple versions, test hooks and scale content with paid media.
  • Compared with an influencer collaboration, UGC offers greater control over targeting, retargeting and performance.
In this article

For years, brands invested in influencers seeking reach, brand image and visibility.

  • Followers.
  • Likes.
  • Showing off.
  • Awareness.

But something has changed. Today, most marketing teams no longer ask only how many views a video gets. They ask something much more uncomfortable:

  • Does it sell?
  • Does it convert?
  • Does it work in ads?
  • Can it be scaled?
  • Does it generate a return?

And that’s one of the reasons UGC is growing so quickly. Because many brands no longer want influencers (Influencers vs UGC). They want a return on their investment, and that’s achieved with UGC Ads.

Listen to the full episode

On the HICARI podcast, we discuss in greater depth:

  • UGC vs influencer marketing
  • How brands are changing their budgets
  • Why TikTok has changed advertising
  • Where social media content is headed

🎙️ Listen here:

SpotifyListen on Spotify (opens in a new tab)

The big shift: from reach to performance

A few years ago, it was relatively easy to justify an influencer collaboration.

The logic was:

“They have a large audience, so they’ll have an impact.”

And yes, many campaigns worked. But the context is different now:

  • acquisition costs have risen
  • competition in paid media is enormous
  • brands need to justify their investment
  • and every euro has to generate a return

That’s why more and more companies are asking themselves:

“Should I spend €1,000 on an influencer… or create several UGC videos and scale them with paid media?”

And this is where the strategy changes completely.

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Influencer vs UGC + Paid Media

Let’s imagine two scenarios.

Option A: Influencer

The brand invests €1,000 in an influencer.

It gets:

  • 1 Reel
  • Maybe 1 story
  • Limited visibility (brand collaborations reduce influencers’ usual impressions by up to more than half)

And besides, if the content seems too promotional, it will probably perform poorly. Unless you’re a major brand like L’Oréal, Zara or Apple, most users will scroll as soon as they detect an overly obvious ad.

Option B: UGC + Ads

Now let’s imagine another scenario.

The brand invests:

  • €180 in a UGC video
  • The rest in advertising on platforms such as Meta or TikTok Ads.

What does it gain? Control. ROI (How to measure UGC ROI)

It can:

  • Target audiences
  • Retarget
  • Test different hooks
  • Launch multiple versions
  • Scale what works

And that’s the key:

Brands no longer buy content. They buy performance.

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About the author

Miguel Palau

CMO / Cofounder HICARI

Writes about UGC, social media content and Paid Media, drawing on the projects we run every day at HICARI.

Frequently asked questions

Why is UGC growing among brands?

Because brands need to justify their investments and are looking for content that converts, works in ads, can be scaled and generates a return.

What are the advantages of combining UGC with advertising?

It allows you to target audiences, retarget, test different hooks, launch multiple versions and scale what works on platforms such as Meta or TikTok Ads.

What’s the difference between investing in an influencer and creating UGC?

An influencer collaboration may offer a Reel and perhaps a story, whereas UGC makes it possible to produce videos and use the rest of the investment on advertising to drive performance.

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