Marketers love a good studio shoot: polished, high-production-value ads that showcase a product in its best light. But in 2025, does that still move the needle? Increasingly, brands are discovering that user-generated content (UGC) — authentic, relatable, and often shot on a smartphone — can outperform even the slickest studio campaigns.
Here’s a look at the benchmarks and data you need to know for 2025 when comparing UGC with studio ads.
Performance: UGC Outperforms on Engagement
Studies consistently show UGC drives higher engagement rates than branded studio content. In fact:
- Social campaigns featuring UGC see up to 28% higher engagement rates than brand-created content.
- On Instagram, posts tagged as UGC drive 4.5x higher conversion rates than non-UGC content.
- 79% of consumers say UGC highly impacts their purchasing decisions, compared to 13% who say the same about brand-created ads.
Why? UGC feels authentic — it comes from someone like the viewer, not a faceless brand. And with ad fatigue on the rise, people are more likely to stop scrolling for something real.
Cost Efficiency: UGC Wins
Studio ads can easily cost thousands (or tens of thousands) per video, not to mention weeks of production time. UGC, on the other hand, is fast and cost-effective:
- Brands report UGC costs up to 50% less per asset than traditional ad production.
- UGC campaigns often deliver 2–3x the ROI of studio ads thanks to lower costs and higher engagement.
For small and medium businesses especially, UGC levels the playing field without sacrificing results.
Audience Trust: UGC Feels Real
Trust remains the deciding factor in purchase decisions:
- 84% of millennials say they don’t trust traditional advertising anymore — but they do trust recommendations from peers, even strangers.
- Only 13% of consumers say they trust brand ads, while 56% trust UGC (and 70% trust peer reviews).
UGC taps into the powerful “third voice” effect, where consumers prefer to hear from people who feel like them. Studio ads rarely achieve the same connection.
When Studio Ads Still Shine
This isn’t to say studio ads are dead. High-production campaigns still excel when you need:
- Brand storytelling at scale (e.g., TV spots, cinematic brand films)
- Controlled visuals for luxury, beauty, or regulated industries
- Evergreen assets that don’t date quickly
But for digital-first, conversion-driven campaigns, UGC tends to win in today’s social landscape.
The Bottom Line
In 2025, UGC isn’t just a budget-friendly alternative — it’s a proven driver of engagement, trust, and ROI. Studio ads still have a place, but brands that ignore the power of authentic, creator-driven content risk falling behind.
For marketers and brands alike, the smartest strategy is finding the right balance — blending the emotional resonance of UGC with the polish of professional creative when it makes sense.
References
- Nielsen (2023). Trust in Advertising: Global Report.
- Stackla (2024). Consumer Content Report: Influence in the Digital Age.
- HubSpot Blog (2024). User-Generated Content Statistics Every Marketer Should Know.
- Social Media Today (2024). UGC Trends and Insights: Why Authenticity Wins in 2025.
- Business Insider (2024). The ROI of UGC vs. Traditional Ads: Data and Benchmarks.
