What is UGC: From user-generated content to paid advertising formats
UGC refers to content created by the public rather than publishers or brands, and it has now also given rise in advertising to paid ad formats that imitate amateur videos. IAB statistics show that U.S. creator ad spending was $37 billion in 2025 and is projected to reach $43.9 billion in 2026; TikTok says creator content engagement rates for North American Spark Ads from February 2024 to January 2025 were 159% higher.