User Generated Content to overtake Professionally Produced Content in 2026
The global advertising landscape is undergoing a major shift, with user-generated content (UGC), including AI-generated material, set to overtake professionally produced content by 2026. In 2019, professional content made up 72% of content-driven ad spend, but this figure is projected to drop to just over 50% by 2025. This shift marks a broader decentralisation trend, fuel by the rise of digital platforms that prioritise cost-effective, algorithm-friendly creator content. These platforms have invested heavily in user experience and AI-driven ad technology, creating an ideal environment for UGC, while traditional news continue to face high production costs.
UGC has become a powerful marketing tool, significantly boosting brand awareness, engagement, and conversion rates—especially when it maintains a sense of authenticity. The younger consumers, particularly Millennials and Gen Z, are especially influenced by this content, which they find more trustworthy and memorable than traditional advertising. UGC not only builds trust by highlighting real customer experiences but also performs better on social media and in ad campaigns, often having higher engagement and lower costs.
A Nielsen study found that 92% of consumers trusted recommendations from people they know, and recent figures show 88% still prefer peer recommendations over brand-generated content. UGC is considered eight times more effective than influencer content in influencing decisions, with 70% of Gen Z and 78% of Millennials saying it plays a vital role in their purchasing choices. As a conclusion Brands must focus on authenticity and community as content created by employees or customers tends to perform better, helping to humanize the brand and foster deeper audience connections.
