Guide: basics
What is UGC?Definition, formats and limits
You see UGC in almost every feed, often without noticing it is advertising. This article explains what the term means, why it now usually refers to commissioned videos and what UGC is good for.
Short answer
UGC stands for user generated content: photos and videos that look like they were made by real users, shot vertically on a phone with one person talking straight to camera. The term first meant posts by real customers. Today it usually means videos that brands commission from creators and use as ads or on their own channels. In the US a commissioned UGC video costs about $70 to $400, depending on the provider.
The definition
UGC means photos and videos in the style of personal 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 a first-person voice. It works because it feels like a recommendation from a peer and less like a commercial. On TikTok, Instagram Reels and YouTube Shorts this style has become the norm.
Customer UGC and commissioned UGC
The term UGC covers two different things that differ mainly in cost, planning and rights.
| Customer UGC | Commissioned UGC | |
|---|---|---|
| Who makes it? | customers on their own initiative | creators or on-camera talent hired by the brand |
| Cost | no production cost, but effort to find it and get permission | about $70 to $100 per video on platforms, $200 to $400 at UGC agencies (as of October 2026, sources below) |
| Planning | not plannable, volume and quality vary | content, number and delivery date are agreed |
| Usage rights | stay with the customer, use only with express permission | licensed in the contract, scope depends on the package |
| Consent of people shown | has to be obtained separately | model release is part of the job |
| Typical use | reviews, reposts, social proof | ads, product pages, your own channels |
Price ranges per video from the published prices of Trend, Feedbird and Brighter Click and from DesignRevision. Details in the article "How much does a UGC video cost?".
The most common UGC formats
Most UGC videos follow one of six basic formats that differ in goal and length.
| Testimonial | A person talks about their experience with the product. Usually 20 to 45 seconds, for trust and ads. The person must actually have used the product. |
| Unboxing | Opening the package shows packaging, contents and the first impression. Usually 15 to 30 seconds, popular in ecommerce. |
| Product demo | The product is shown in use. Usually 15 to 45 seconds, good for product pages and ads. |
| Problem and solution | An everyday problem is shown and the product solves it. Usually 15 to 30 seconds, a classic ad format. |
| Tutorial | A step-by-step explanation of how something works. Usually 30 to 60 seconds, for products that need explaining. |
| Voiceover | A voice off camera comments on footage of the product, the speaker is not seen. Good when the visuals carry the message. |
Lengths are typical values from our production, not platform requirements.
What brands use UGC for
Most brands use UGC as creative for paid ads on Meta, TikTok and YouTube.
Ads lose impact after a few weeks, so advertisers need new variations regularly. UGC can be produced in larger numbers and with different openings, called hooks (the first one to three seconds of a video), and then tested. Brands also use UGC on product pages, on marketplaces such as Amazon, in emails and on their own social channels.
Where UGC reaches its limits
UGC is a tool for specific jobs and does not fit everywhere.
- For a high-end brand film or a TV spot, the phone look usually feels out of place.
- UGC does not bring reach by itself: without ad budget or your own followers, few people see it.
- Commissioned UGC is advertising. When a creator posts it on their own account, the FTC expects a clear disclosure such as "#ad" (16 CFR Part 255).
- Testimonials must reflect real experience. The FTC Consumer Review Rule (16 CFR Part 465) bans fake reviews and testimonials, so creators should actually use the product.
- Health, supplements and other regulated categories have extra rules for product claims.
- Without written usage rights and model releases, use is risky. In New York, for example, using a person's likeness in advertising requires written consent (Civil Rights Law § 50).
How FNLY Social produces UGC for US brands
At FNLY Social, around 20 bookable creators and on-camera talent, including English-speaking creators, film in our own studio in Germany.
You ship your product to us on DDP terms, and we deliver a single video 10 business days after it arrives, or in 72 hours as express for 40 % extra. Usage rights and model releases are set out in writing in every package. Our creators actually use the product, and scripts never invent experiences.
Updated:
Sources
- Trend: Pricing
- DesignRevision: UGC Creator Pricing in 2026
- Feedbird: UGC Videos
- Brighter Click: UGC Agency
- Federal Register, July 26, 2023: Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 CFR Part 255)
- FTC: The Consumer Reviews and Testimonials Rule, Questions and Answers
- New York Civil Rights Law § 50 (nysenate.gov)
FAQ
Frequently asked questions
What does UGC stand for?
UGC stands for user generated content. It means photos and videos in the style of personal social media posts.
Is UGC the same as influencer marketing?
No. With influencer marketing you pay for a person's reach on their own account. With commissioned UGC you buy content that you run on your own channels and in your own ads.
Does a UGC creator need a lot of followers?
No. What counts in UGC is how convincing someone is on camera, not the size of their account. The video reaches people through your channels or your ads.
Can I just repost my customers' photos and videos?
Usually only with their express permission, because the rights stay with the person who made the content. If people are recognizable, you may also need their consent under state right of publicity laws.
Does commissioned UGC need an FTC disclosure?
It depends on where it runs. An ad from your brand account is marked by the platform's ad label. When a creator posts the paid video on their own account, the creator has to disclose the relationship clearly, for example with "#ad" or "Paid partnership".
Which businesses is UGC right for?
UGC works especially well for ecommerce brands, consumer products, apps and software, and service businesses that advertise on social media. It helps most when you need many ad variations.
How long does production take at FNLY Social?
FNLY Social delivers a single video 10 business days after your product arrives at our studio in Germany. Express delivery in 72 hours costs 40 % extra.
What is UGC?
UGC for your product
Tell us what you sell and where the videos will run. We suggest formats and a package that fits.