Guide: basics
What is UGC?Definition, formats and limits
You see UGC in almost every feed, often without noticing it as advertising. This article explains what the term means, why it usually refers to commissioned videos today and what UGC is suited for.
In short
UGC stands for User Generated Content: content that looks as if real users made it. Vertical format, phone camera, a person talking straight into the camera. Originally the term meant posts by real customers. Today it usually means videos that companies commission from creators and use as ads or on their own channels.
The definition
UGC refers to photos and videos in the style of private social media posts in which a person shows, explains or reviews a product or service.
Typical features are the vertical 9:16 format, a length of 15 to 60 seconds, natural light and first-person speech. The effect comes from the content feeling like a recommendation rather than a commercial. On platforms such as TikTok, Instagram Reels (short vertical videos on Instagram) and YouTube Shorts, this style has become the standard.
Genuine customer UGC and commissioned UGC
The term UGC covers two different things that differ mainly in cost, predictability and rights.
| Genuine customer UGC | Commissioned UGC | |
|---|---|---|
| Who creates it? | Customers on their own initiative | Creators or performers commissioned by the company |
| Cost | no production cost, but effort for finding it and getting approval | on platforms from €59 per video, at agencies with script €200 to €1,200 per video (as of 10/2026, sources below) |
| Predictability | cannot be planned, quantity and quality vary | content, number and date are agreed |
| Usage rights | belong to the customer, use only with explicit permission | granted in the contract, scope depending on the package |
| Consent of people shown | must be obtained separately | model release is part of the order |
| Typical use | reviews, reposts, social proof | ads, product pages, own channels |
Price range per video according to the published prices of Speekly, UGC.NL, chaerry and FUTRIZE: platforms €59 to €229, agencies with script €200 to €1,200. Details in the article “What does a UGC video cost?”.
The most common UGC formats
Most UGC videos follow one of eight basic formats that differ in goal and length.
| Testimonial | A person talks about their experience with the product. Typically 20 to 45 seconds, for trust and ads. |
| Unboxing | Unpacking shows packaging, contents and the first impression. Typically 15 to 30 seconds, popular in e-commerce. |
| Product demo | The product is shown in use. Typically 15 to 45 seconds, good for product pages and ads. |
| Problem and solution | An everyday problem is shown and the product solves it. Typically 15 to 30 seconds, a classic ad format. |
| Tutorial | Step by step, it explains how something works. Typically 30 to 60 seconds, for products that need explaining. |
| Voiceover | An off-screen voice comments on footage of the product, the person is not visible. Good when the footage is the focus. |
| Street interview | Passers-by or performers are asked a few short questions. It feels spontaneous and works for awareness. |
| Employee video | Employees show their workplace or their company. For employer brand and recruiting. |
The lengths are common guide values from our production, not platform requirements.
What companies use UGC for
UGC is most often used as creative in paid ads on Meta, TikTok and YouTube.
Because ads lose effect after a few weeks, advertisers regularly need new variants. UGC can be produced and tested in larger numbers and with different openings, called hooks (the first one to three seconds of a video). Companies also use UGC on product pages in their store, on marketplaces, in emails and on their own social media channels.
Where UGC reaches its limits
UGC is a tool for certain tasks and does not fit everywhere.
- For a high-end image film or a TV commercial, the phone style usually looks out of place.
- UGC does not replace reach: without an ad budget or your own followers, hardly anyone sees the video.
- Commissioned UGC is advertising and, depending on its use, must be labelled as such (§ 5a(4) UWG, German Unfair Competition Act).
- Invented testimonials are misleading. Performers should actually have used the product.
- In industries such as health and cosmetics, additional limits apply to claims about effects.
- Without usage rights and performer consent settled in writing (§ 22 KUG, German Art Copyright Act), using the content is risky.
How FNLY Social produces UGC
At FNLY Social, our own team and around 20 bookable creators and performers appear on camera. We shoot in our studio in Borken or on site at your location.
Usage rights and performer consent are covered in every package. We deliver a single video 10 working days after receiving the product, or as express in 72 hours for a surcharge.
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FAQ
Frequently asked questions
What does the abbreviation UGC stand for?
UGC stands for User Generated Content. It means photos and videos in the style of private social media posts.
Is UGC the same as influencer marketing?
No. With influencer marketing you pay for a person's reach on their own channel. With commissioned UGC you buy content that you use on your own channels and in your ads.
Does a UGC creator need many followers?
No. With UGC, what counts is how convincing someone is on camera, not the size of their account. The video is delivered through your channels or ads.
Can I simply share my customers' photos and videos?
Generally only with explicit permission, because the rights to the content belong to the person who created it. If people can be recognized, their consent under § 22 KUG is also required.
Does commissioned UGC have to be labelled as advertising?
That depends on how it is used. An ad from your company account is generally already recognizable as advertising for users. If a creator posts the video on their own account for payment, they must label it as advertising.
Which companies is UGC suited for?
Especially e-commerce brands, consumer goods, apps and service providers that run ads on social media. UGC-style employee videos are also used for employer branding and recruiting.
How long does production at FNLY Social take?
FNLY Social delivers a single video 10 working days after receiving the product or after the shoot date. Express delivery in 72 hours is possible for a surcharge.
What is UGC?
UGC for your product
Tell us what you sell and where the videos will run. We suggest formats and a suitable package.