How UGC Can Cut Your Ad Costs While Boosting Performance

If you’re still relying solely on high-production ads, you’re probably overspending—and underperforming. Traditional ad creative is expensive to produce, time-consuming, and often fails to connect with today’s audiences. That’s where User-Generated Content (UGC) changes the game.

Brands using UGC in their ad strategy aren’t just saving money—they’re seeing 4x higher engagement rates, 50% lower cost-per-click (CPC), and 29% higher conversions compared to traditional ads. Here’s how UGC helps you spend less and earn more.

1. Lower Production Costs, Higher ROI

Studio shoots can cost anywhere from $5,000 to $50,000+ per campaign and take weeks to execute. UGC, on the other hand, delivers high-performing, conversion-driven content without the heavy production costs or long turnaround times. With the right strategy, you get authentic content that’s ready in days—not weeks.

Fix it: Swap expensive video shoots for authentic UGC created by real people. You’ll spend less and get content that feels more relatable and trustworthy.

2. UGC Outperforms Traditional Ads in Click-Through Rates (CTR)

People scroll past polished ads because they scream 'marketing.' And when engagement goes up? Costs go down. Social platforms reward content that performs—making UGC the ultimate budget-friendly ad format. Studies show that UGC-based ads have 4x higher click-through rates (CTR) because they blend naturally into the feed, making them feel like organic content rather than an ad.

Fix it: Run A/B tests comparing UGC ads to traditional creatives. You’ll likely find that UGC drives higher engagement at a lower cost.

3. UGC Reduces Cost-Per-Click (CPC) and Cost-Per-Acquisition (CPA)

The more engaging an ad, the less you pay per click. Social platforms prioritize content that resonates with users—and UGC does exactly that.

Fix it: Leverage UGC in performance marketing. According to Meta, brands that shift even a portion of their budget to UGC-driven ads often see 30-50% lower CPC and CPA, with some experiencing up to 3x higher return on ad spend (ROAS). Great ads don’t have to be expensive—just effective. And right now? UGC is winning that game.***

4. UGC Improves Ad Retargeting Success

Your retargeting efforts only work if your audience actually engages. UGC keeps them interested, making your ad spend more efficient.

Fix it: Use UGC in retargeting campaigns. Showcase real customer testimonials, reactions, and product use cases to warm up hesitant buyers.

5. UGC Extends the Lifespan of Your Ads

Ever notice how traditional ads start fatiguing quickly? UGC gives you a steady stream of fresh, diverse content—keeping your campaigns fresh without constant reinvestment.

Fix it: Build a UGC pipeline to continuously source and refresh ad content. The more variations you have, the longer your ads stay effective.

Final Thoughts: Spend Smarter, Convert Better

UGC isn’t just about saving money—it’s about making your budget work harder. At truetales, we’ve helped brands slash ad costs by leveraging UGC in their retargeting. Want proof? Brands using UGC see 20-30% higher conversion rates in retargeting ads. Research shows that 93% of marketers agree UGC performs better than branded content, and companies using UGC see a 20% increase in repeat purchases. If you’re not incorporating UGC into your paid media strategy, you’re leaving money on the table.

Your ads should work as hard as you do. Let’s make them perform—and save you money while we’re at it. That’s where truetales comes in. We create high-performing UGC that saves you money and drives conversions. Let’s talk.