UGC fees have climbed while performance hasn't. James Massey on why brands seeing real returns are spending more selectively, not spending less.
Your agency is probably telling you to double down on UGC. Spend more, it's the cheat code to growth.
The problem is that the market has shifted. UGC fees have climbed and, for many brands, performance hasn't.
The cost doesn't match the return
The cost per asset rarely offers the efficiencies to justify it. We see and hear it every time we get under the hood of a brand's account, and the pattern is consistent.
Creators and agents have done well out of this model, but CFOs and CMOs are left wondering why CACs and CPMs keep climbing and CTRs keep falling while creative volume goes up.
More content doesn't fix the problem
The answer is usually straightforward. More content doesn't fix a broken brief, a saturated format, or a creator who can't evidence they drive anything beyond a view. It just costs more.
What's working
The brands seeing real returns right now aren't spending less, they're spending more selectively. Fewer creators, stronger fit, better data behind the decisions.
UGC isn't dead. But the version your agency is selling you probably is.
Learn more about how we build creator-led acquisition programmes through our influencer marketing service.