Is UGC reaching the end of its hype cycle? ๐Ÿ‘€

(I stumbled on this completely AI generated UGC ad the other day)

Itโ€™s dominated the paid social space for years

And it is still the weapon of choice for performance marketers on Meta and TikTok

I can almost say that 100% of our clients at NUSA STUDIOS use it in their marketing mix

But I think we're about to hit a turning point, where its effectiveness begins to soften

Hereโ€™s why:

1) Itโ€™s everywhere
๐Ÿ‘‰ Every brand and their dog is using it
๐Ÿ‘‰ This has led to a 'sea of sameness' within ad creatives,ย and consumers are learning to tune it out
๐Ÿ‘‰ Audiences can now spot fake UGC from a mile off

2) The market is oversaturated
๐Ÿ‘‰ Itโ€™s never been easier to make UGC
๐Ÿ‘‰ Low barriers + systemised production = a flood of supply
๐Ÿ‘‰ Agencies are churning it out at scale, and that scale is killing its effectiveness

3. AI-generated UGC is on the rise
๐Ÿ‘‰ Synthetic content is cheaper and faster to produce, which makes it even more appealing to brands
๐Ÿค” But the more we use it, the less impact it has

Itโ€™s starting to feel like a race to the bottom

What once felt raw and authentic now feels... manufactured

In fact, Iโ€™m even questioning the definition of UGC itself because most UGC isnโ€™t really user-generated at all

Itโ€™s content made by creators who have been hired to act like genuine fans

(Tom Davies
wrote a brilliant piece on this - worth checking it out)

So whatโ€™s next?

This is maybe a far out prediction but I think the flurry of AI generated content will make personality-led content much much more valuable

Long-term, I think UGC will take a backseat & be slowly replaced by documentary-style, story-first creative that feels more personal and less manufactured

Would love to hear your thoughts๐Ÿ‘‡

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