How does user-generated content benefit performance ads?

User-generated content (UGC) benefits performance ads significantly by increasing authenticity and trust among potential customers. When consumers see content created by their peers, such as reviews, testimonials, or social media posts, it often resonates with them more than traditional advertising. This is because UGC typically reflects real experiences and opinions, which can make a brand appear more relatable and trustworthy. Performance ads that incorporate UGC are more likely to connect with their target audience, leading to higher engagement rates, improved brand perception, and ultimately increased conversion rates.

The effectiveness of UGC is rooted in the social proof theory, where people are influenced by the actions and opinions of others. As such, incorporating UGC into performance advertising strategies allows brands to leverage this inherent trust, making users feel more confident in making purchasing decisions.