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Influencers and UGC

| Article: 3 min read | Marketing

Influencer marketing is when a store works with people who have a social media audience to tell that audience about a product. UGC (user-generated content) is content created by the buyers themselves: reviews, photos, videos. It can be free or commissioned from creators.

In plain words

Both approaches work through trust: it is easier for people to believe another person than an advertisement. The difference is who is speaking. An influencer has their own audience, while a UGC creator or buyer does not, but their video looks "like it's from an ordinary person" and can be used in your ads and on the product page.

What research says

There is no fresh independent data for Ukraine. Global surveys are mostly run by platforms that earn money in this market, so read them with caution.

  • LTK (a survey of 1,021 platform users, December 2024): 84% trust brands more when creators show and evaluate a product; 30% of Gen Z and millennials bought after a creator's first post, 40% after several. The survey was run by the LTK platform itself, and the sample is its users, who on average have higher income and education (NetInfluencer, January 2025).
  • There are no fresh independent studies on the impact of reviews and user-generated content.

The law in Ukraine

With the update of the Law "On Advertising" (passed by the Verkhovna Rada on 30 May, signed on 30 June 2023), the concept of user-generated content appeared in the law: if a blogger or ambassador creates such content on a brand's order, it must be labeled as the law requires, otherwise the influencer is liable. The law also covers advertising in messengers and chatbots and product placement (Forbes Ukraine, 2023). For how to label right now, check the current text of the law or ask a lawyer.

How to measure the result

Formula: payback = (campaign revenue × margin − cost of the collaboration) / cost of the collaboration.

An illustrative example (made-up figures). Costs: UAH 15,000 for the creator plus UAH 2,000 worth of product. The creator's promo code brought 40 orders × UAH 1,100 = UAH 44,000, margin 30% = UAH 13,200. Payback (13,200 − 17,000) / 17,000 = minus 22%. But some people bought without the promo code, and the video can be used in ads. So track promo codes, UTM tags and a "how did you hear about us" survey separately, and compare with a period without a campaign. On why direct reports under- or overestimate, see attribution and incrementality.

When UGC is more useful

  • Buyer reviews and photos on the product page: see social proof.
  • "Unboxing" videos for Meta ads: see Meta advertising: Advantage+.
  • Cheap testing of ideas: different creators bring different ideas.

Common mistakes

  • Choosing by follower count rather than audience match.
  • Not labeling advertising.
  • Asking for a perfect video instead of a natural one.
  • Not agreeing on rights to use the content in ads.
  • Not putting the terms in a contract.

FAQ

How does UGC differ from influencer marketing? UGC is created by ordinary buyers or creators for your channel; an influencer publishes in their own channel for their own audience.

Do I need to label advertising from bloggers? Under the updated Law "On Advertising" (2023), yes, if the content was commissioned. The details are in the current text of the law.

How do I check that it works? Promo codes, UTM tags, surveys and comparison with a period without a campaign.

Sources

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