User-generated content — content made by customers, audience members, or hired creators that looks unscripted and authentic rather than brand-produced.
UGC is content created by users rather than the brand itself. Two flavors: (1) organic UGC — actual customers posting about a product unprompted (the gold standard, hardest to engineer); (2) paid UGC — creators hired to produce content that looks like organic user content (the dominant ad format on TikTok and Reels in 2023+).
Paid UGC creators charge $200–2000 per video. The format works because algorithm-driven feeds reward content that "feels native" — a polished brand ad gets scrolled past; a creator filming themselves in their kitchen talking about a product gets watched. Brands use UGC for paid ads, organic content, and landing-page testimonials.
For SaaS and digital products, UGC is harder to source than for physical products. The workaround is to commission UGC creators to talk about the product as if they were a user — disclosing the partnership is legally required.