Brand Created vs. UGC Video Ads: Which Work Better For eCommerce Facebook Advertising?

The battle between brand-created and User-Generated Content (UGC) video ads rages on. Eager to drive sales on Facebook, eCommerce brands are faced with a critical decision: which type of video ad creative should they invest in? Let’s first dissect the essence of each approach.

Brand Created Video Ads

These videos are meticulously and professionally crafted, often with polished aesthetics, strategic messaging, and precise brand alignment. They showcase products, narrate stories, and create a controlled narrative that embodies the brand's identity.

UGC Video Ads

In stark contrast, UGC video ads are the epitome of authenticity and relatability. They emerge from the creativity and experiences of real customers. These videos highlight how consumers use, appreciate, and find value in products. UGC video ads encapsulate the power of peer influence, leveraging relatability and social proof to resonate with a broader audience.

UGC resonates with audiences in ways that brand-created content often cannot. When incorporated into Facebook and Instagram ads, UGC adds a human touch that establishes trust, social proof, and emotional connections, all of which are pivotal in driving conversions in the eCommerce space. 

Why UGC Video Ads Shine Bright on Facebook

Authenticity Speaks Volumes: 

In a world bombarded by polished advertising messages, UGC videos cut through the noise with authenticity. Real customers sharing real experiences wield the power of relatability, creating a stronger connection with viewers.

Statistics indicate that UGC videos outshine brand-created ones when it comes to authenticity. A survey conducted by Stackla revealed that 79% of people said UGC highly influenced their purchasing decisions. Authenticity strikes a chord with modern consumers, igniting trust and connection, attributes that resonate deeply on social media platforms like Facebook.

Social Proof as a Conversion Catalyst: 

UGC videos serve as social proof, showcasing how products integrate seamlessly into the lives of consumers. When potential buyers witness others using and benefiting from products, their trust and confidence in the brand increase.

Social proof is the driving force behind many purchasing decisions. UGC videos act as testimonials, showing real customers deriving real value from products. An impressive 85% of consumers find user-generated content more influential than brand-created photos or videos. This dynamic social validation propels UGC video ads as potent tools for boosting conversions in eCommerce.

Emotion Drives Engagement: 

UGC videos often evoke emotions, whether it's joy, nostalgia, or empathy. These emotions not only captivate attention but also foster engagement, a critical metric in the world of Facebook and Instagram ads.

Variety and Diversity: 

Diversity is key in the world of eCommerce. UGC video ads offer a treasure trove of perspectives, catering to a broader demographic spectrum. These videos showcase how products fit into various lifestyles, inspiring relatability and connection across audiences.

UGC videos bring a diverse range of perspectives, allowing brands to tap into various demographics and segments. This inclusivity enhances the reach and impact of eCommerce advertising campaigns.

Navigating the KPI Landscape: Brand Created vs. UGC Video Ads

The path to advertising success on Facebook is paved with Key Performance Indicators (KPIs). Let's explore how these KPIs align with brand-created and UGC video ads:

1. Brand Awareness and Reach

If your goal is to bolster brand awareness, both brand-created and UGC video ads can be effective. However, UGC videos tend to perform exceptionally well in this realm due to their relatable nature. A UGC video featuring a genuine customer experience can ignite a viral spark, resulting in organic reach far beyond expectations.

2. Engagement and Interactions

Engagement is the lifeblood of social media. Engagement metrics encompass likes, comments, shares, and views. For maximizing engagement, UGC video ads win. Their relatable content encourages likes, comments, and shares, fostering a sense of community around your brand.

According to a study by Yotpo, UGC videos drive 10 times more engagement than static content. This avalanche of likes, shares, and comments not only enhances visibility but also nurtures a community of brand advocates.

UGC videos are designed to captivate and resonate with viewers, marked with higher engagement rates than brand video ads, indicating that the content is connecting with the target audience.

3. Click-Through Rates (CTR)

A high CTR signifies that the UGC video ad's call-to-action (CTA) is effective. This metric reflects the percentage of people who click on the ad after seeing it. A well-crafted UGC video ad can encourage users to take the next step, driving them to the brand's eCommerce platform.

4. Conversion Rates and Sales

Ultimately, conversion rates are the litmus test for an eCommerce ad's success. Whether it's making a purchase, signing up for a newsletter, or downloading a resource, UGC video ads should aim to guide users toward a desired action.

When it comes to driving conversions, UGC video ads hold a distinct advantage. They tap into the psychology of social proof, showcasing how real customers have benefited from your products. This powerful influence can significantly boost conversion rates.

5. Return on Ad Spend (ROAS) & ROI

The holy grail of eCommerce ad spend measurements. ROAS measures the revenue generated for every dollar spent on advertising. UGC video ads that effectively resonate with viewers and lead to conversions will drive this metric.

According to Yotpo, UGC increases conversion rates by 161% and improves order value by 50%. This potent ROI booster makes UGC video ads a compelling choice for those seeking tangible financial returns.

6. Customer Loyalty and Advocacy

Fostering loyalty is pivotal for repeat business. UGC video ads, with their showcase of genuine customer experiences, play a pivotal role in building an army of loyal brand advocates that brand created video ads can’t achieve. 

UGC video ads provide an avenue for brands to gather customer sentiment and feedback. Monitoring comments, direct messages, and interactions on social media platforms can offer insights into how the audience is responding to the content.

Optimizing UGC Video Ads for Facebook and Instagram

Tap Into Consumer Creativity: 

Encourage customers to create UGC videos that showcase their own creativity and experiences with the product. A strong call-to-action can motivate users to share their stories.

Motivate your customers to share their experiences through UGC video ads. Contests, challenges, and incentives can catalyze active involvement.

Showcase Diversity

UGC video ads shine when they embrace diverse perspectives. Encourage customers from various walks of life to participate, showcasing a wide range of product applications.

Curate and Highlight: 

Select the most compelling UGC videos that align with the brand's identity and values. Not all UGC videos are created equal, so choose wisely.

Leverage Reviews and Testimonials

Reviews and testimonials have significant influence. Encourage customers to share their success stories through UGC video ads, thereby creating an army of credible advocates.

Incorporate Calls-to-Action

While UGC videos are authentic, strategic calls-to-action can guide viewers towards desired actions, whether it's making a purchase or signing up for updates.

Craft Engaging Captions: 

A captivating caption can complement the UGC video, providing context and enhancing the emotional impact. The caption should encourage viewers to take action.

Utilize Appropriate Hashtags: 

Incorporate relevant hashtags to increase the discoverability of the UGC video ad. This is particularly effective on Instagram, where hashtags play a significant role.

Test and Iterate: 

The beauty of digital advertising lies in its adaptability. Test different UGC video ads, analyze their performance, and iterate based on the results.

#WINNING: UGC Video Ads

In the realm of eCommerce Facebook and Instagram advertising, the verdict is clear: UGC video ads hold the key to resonating with audiences, driving engagement, and propelling conversions. The authenticity and relatability of UGC videos create an emotional bridge between brands and consumers, fostering connections that can't be achieved through brand-created content alone. 

While brand-created videos have their merits, UGC video ads are the champions in an age where consumers yearn for genuine experiences. With strategic alignment of KPIs, businesses can leverage UGC video ads to create impactful narratives that not only resonate but also drive the bottom line. 

By establishing KPIs that align with engagement, CTR, conversion rates, ROAS, and customer sentiment, brands can measure the success of their UGC video ad campaigns and refine their strategies for continued growth. Effective eCommerce advertising harnesses the power of UGC videos, where real stories, authentic experiences, and compelling narratives pave the way to undeniable results.