Martin Kärdi

UGC Ads vs. Brand-Created Videos - Which is Better for TikTok?

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UGC Ads vs. Brand-Created Videos - Which are Better for Shopify Dropshipping Advertising on TikTok?Promoting your Shopify dropshipping store in 2022 has become more of a challenge than ever, but that doesn't mean that there are not some fantastic opportunities to create a successful business.TikTok is a video platform opening doors for all dropshippers, where they can leverage it's popularity to advertise products via Tiktok Ads.

But the burning question remains, what kind of video ad creatives should you invest in?Are UGC ads or brand-created video ads better for advertising a Shopify dropshipping store?

In this guide, we are going to dive into the world of ecommerce marketing and find out whether You should place Your bets on UGC ads or brand-created video ads.

What are UGC Ads and Brand-Created Videos?

On TikTok, we see both UGC ads and brand-created videos grace our 'For You' page. So how do we define each?


UGC video ads are user-generated content where a creator makes a video showcasing a product or service in their manner. UGC ads aim to promote brands and their inventory more naturally, letting influencers take the reigns of promotion rather than hard-line sales from brands.UGC marketing is becoming more common as the global social media audience becomes more adept at picking out overzealous product commercials. Many users skip over professionally produced ads as they are considered untrustworthy.Target demographics for your products tend to have higher levels of trust in creators they follow and respect. That authenticity yields better results for boosting products and services than your typical brand advertisement.

Brand-Created Videos

Brand-created videos are advertisements that have a more curated, professional touch about them. The production value is often higher for these ads, featuring quality cinematography, actors, and visual effects to create a stimulating buzz about a product or service.These advertisements can be impressive, but they often feature inflated information about products without real-world validation. The stigma attached to brand-created videos in the modern social media market is their overly professional production masks the fact that the product won't live up to expectations.However, the professionalism put into creating the videos does tend to build rapport around the brand and raise its status as an 'elite' entity. Despite brand-created videos having less engagement than in previous years on social media, they still serve a purpose.

UGC ads vs. Brand Created Video Ads for TikTok

UGC Ads vs. Brand-Created Videos for TikTok Ads

Shopify dropshipping store owners have seen the potential of TikTok and how it's fast becoming an excellent platform to advertise their products.

But the debate remains on whether UGC video ads or brand-created videos would see better return, higher engagement, and ultimately more conversions for their inventory.So what would benefit your product and brand promotion, UGC ads, or brand-created videos?

We can get to the bottom of this discussion by analyzing the significant factors between the two video ad formats.

Cost of Video Production

The fact of the matter is, that brand-created videos will cost significantly more than UGC ads.

Creating these advertisements involves professional services such as equipment hire, actors, and a film crew which will rack up tens of thousands of dollars. These production elements quickly add up, bringing the toll up to at least a $1000 per brand-created video ad.UGC videos can cost very little in comparison. For example, our User Generated Content service costs $189 per UGC video AD.

You can get a more authentic promotion of your product and services from an influencer or key opinion leader (KOL) in your brand's niche.

Taking Social Proof into Consideration

Social proof is the validation of your product and service in real-world testimonials. Brand-created video ads are promotions that come straight from the horse's mouth. You won't find anything objective about the product.Social media audiences have matured to recognize that no product is perfect, and promotions with no honesty seem more untrustworthy than more authentic inventory reviews.

UGC video ads usually feature more genuine testimonials of your products and services, offering more social proof and building trust.

Building Brand Awareness

A dazzling, professionally made, brand-created video can certainly turn heads on its production value alone. However, we're seeing a sharp rise in engagement from UGC video ads, even from major brands.The authentic, natural aesthetic offers more entertainment value from a personality that's already loved and trusted. The UGC ads show more brand-building potential by creating a natural bridge between businesses and consumers.The more creators that talk about your products lay the foundations for more brand awareness and invaluable information about how you can shape a better business.


Finally, the results behind brand-created videos and a UGC campaign would be the ultimate determining factor in defining which media is better. UGC video ads see higher engagement and interaction from users on TikTok, but businesses will be more interested in conversions.Do UGC ads generate as much revenue as professional brand-created videos?

Considering the initial investment in a UGC campaign, businesses see wider profit margins on their products.Brand-created videos may give your products a professional edge. Still, as mentioned above, they are expensive and can eat into profits. Ultimately for TikTok advertising, UGC ads have the advantage over brand-created video ads.

Which Video Ad Format is Better for a Shopify Dropshipping Store?

The format of TikTok, paired with the typical budget of a Shopify dropshipping store, makes UGC video ads a better choice for advertising products.

The positives of UGC marketing significantly outweigh those of a brand-created video when building a dropshipping business.Advantages of UGC video ads for a Shopify dropshipping store include:

  • Authenticates and validates the quality of your products
  • Building customer trust factor 
  • More affordable advertising rates allow more flexibility in your marketing
  • Cheaper cost of video ad production
  • Building social proof
  • Create a more holistic, trustworthy brand for your dropshipping store

So with UGC ads determined as the better video ad format for TikTok, where do you start getting them?

Where Can I Buy UGC Video Ads?

User-generated content is the more effective way to promote your Shopify dropshipping store. However, finding the right influencers, networking with them, and securing a deal to advertise your products can often be time-consuming.

Furthermore, You have no leverage over the creators to create the UGC ad for You, meaning there is always a risk of getting scammed. As a store owner, you'd probably want to invest your time growing your sales rather than discussing content with influencers and KOLs.How does our UGC ad service work? Simply tell us what You want our creator say, ship us Your product and done!

We leverage our vast network of Instagram & Tiktok influencers and UGC marketing expertise to give your e-commerce store the desired results.

To learn more about ugc ads, read our in-depth article regarding 5 user generated content examples.

Learn more about our user generated content ads service.

Author Martin Kärdi

Hailing from Tallinn, Estonia, Martin is the co-founder and director of paid advertising at Adsellr. With a history of launching prosperous e-commerce stores since 2015, he possesses an extensive skill set that includes managing social media advertisements, crafting high-converting website copy, and continuously expanding his e-commerce knowledge.

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