How AI and UGC are rewriting the rules of performance marketing

From Reels to Shorts, UGC is rewriting performance marketing—powered by AI, authenticity, and in-platform commerce tools that push consumers seamlessly from scroll to sale.

author-image
Crish Shah
New Update
Crish_Spek

On short-form platforms such as Meta Reels and YouTube Shorts, User-Generated Content (UGC) has emerged as one of the most effective creative formats for performance marketing. 

Advertisment

The reason is clear – these assets provide consumers with a realistic perspective on what to expect from a product or service. Rather than polished, overtly branded advertising, UGC offers somewhat authentic, relatable content that feels native to the platform. In our experience, UGC typically falls into two categories. 

The first is testimonial-led content, often created by micro-influencers or genuine customers, which demonstrates how a product works and builds immediate trust. This format excels at moving audiences from interest to purchase, particularly within retargeting strategies. 

The second is trend-driven content – fast-paced, visually arresting, and often aligned with current sounds, memes, or challenges. While these assets are more effective for awareness and brand recall than direct conversion, both formats are vital. Trend-led creatives capture attention, while testimonial-led creatives provide the credibility needed to close the sale.

Advancements in AI are now transforming how UGC is produced and scaled. Technologies such as Higgsfield, Caption, Google VEO 3 & OpenAI can generate high-engagement testimonial-style videos without the need for traditional shoots. 

They accurately synchronise voiceovers with character actions, deliver high-quality visuals and even create consistent “brand characters” that can appear across multiple campaigns. This addresses a long-standing challenge in UGC production – maintaining consistent brand tone, presentation and messaging without being dependent on the same talent each time. 

Additionally, Instagram features are expanding UGC’s commercial impact. On Meta, when a brand page cross-posts content with an influencer, it effectively opens new audience cookies tied to the influencer’s video, creating fresh retargeting pools. 

Further, if an ad is clicked, Meta can now integrate a shop tab directly onto the influencer’s profile, allowing consumers to view and purchase products without leaving Instagram. 

This convergence of authentic content, AI-driven production and in-platform commerce tools means UGC can now move seamlessly from awareness to purchase, with fewer steps and higher intent. On YouTube Shorts, the same consistency and audience access drive stronger brand recall in India, and a good strategy can help reach out to multiple demographics in parallel.

Over the past quarter, we’ve had the opportunity to collaborate with leading brands across categories through a series of user-generated content campaigns. 

In the dry fruits and spices space, we highlighted quality and everyday wellness, while in the organic food category, we amplified narratives around purity and sustainability. 

Our work in the fashion and lifestyle segment delivered engaging stories for premium denim, contemporary apparel, and luxury polo wear, each tailored to reflect their unique identity and consumer appeal. In the pet nutrition category, we focused on showcasing innovation and trust, and in the bakery and desserts segment, we brought to life the indulgence and joy that define the brand experience. 

Across each of these projects, our focus remained on creating content that resonates authentically with audiences and strengthens the voice of the categories we represent.

The strategic approach is straightforward: use trend-led reels to build awareness at the top of the funnel, then retarget those audiences with testimonial-led content that reinforces credibility and prompts action. 

Both Meta and YouTube reward content that captures attention within the first seconds and feels native to the feed—that is precisely where UGC excels. By using AI, brands can quickly try out different ideas, styles, and creative approaches to find what works best and then expand those successful options for the best return on investment. 

The outcome is a continuous pipeline of authentic, high-performing assets designed to drive measurable business growth. 

Moreover, the Indian demographic has always been a major fan of Bollywood & cricket; this is where a face to the brand & sounds that create nostalgic moments, such as popular jingles, further drive home the relatability factor, which is now accessible to not only the MNCs but also the small- to medium-sized businesses with a similar emotional connection that didn’t exist before.

(Our guest author, Crish Shah, is the Managing Director of Spek Digital, a Schbang Network partner. Spek Digital helps brands achieve growth through creative strategies, digital marketing, and effective e-commerce solutions.) 

Influecer marketing performance marketing user generated content UGC ai artificial intelligence
afaqs! CaseStudies: How have iconic brands been shaped and built?
Advertisment