Marketing has changed dramatically over the past decade. Where traditional ads once ruled, today’s audiences are looking for something different: authenticity, trust, and connection. That’s why influencer marketing and user-generated content (UGC) have become two of the most effective strategies for modern brands.

But which one delivers the best ROI? The answer isn’t as simple as choosing one over the other. In fact, the strongest brands in 2025 are blending both - using UGC creators and influencers (especially nano influencers) to cover every stage of the customer journey.

Let’s break it down.

What Is Influencer Marketing?

Influencer marketing is the practice of working with creators who have built a loyal following online. These can range from macro influencers with hundreds of thousands of followers to nano influencers with smaller, highly engaged audiences.

The goal is straightforward: tap into the influencer’s audience to build brand awareness, increase reach, and borrow some of the trust that influencer has earned with their community.

According to Favoured, influencer marketing is still one of the fastest ways to introduce your brand to new people. When done right, it creates excitement and credibility almost instantly.

What Is UGC?

UGC stands for user-generated content. This can be anything from a photo of someone using your product to a TikTok review made by a customer, or a piece of content created by a UGC creator who specializes in making authentic-looking content for brands.

Unlike influencer marketing, the value of UGC doesn’t come from reach. It comes from authenticity and versatility. Brands use UGC in ads, on product pages, in emails, and across social platforms.

As Precision Social puts it, UGC is “content that feels real, relatable, and customer-driven,” which is exactly what today’s buyers are looking for.

UGC vs Influencer Marketing: The Key Differences

Why UGC Delivers Strong ROI

Brands looking for UGC creators in 2026 are doing so for a reason: UGC works. Here’s why.

1. Authenticity wins over polished ads

Today’s customers are skeptical of overly produced ads. UGC feels raw, natural, and believable, which is why it often outperforms influencer content in conversions. A Vogue Business study found that 36% of consumers now discover brands through authentic, community-driven content, compared to just 26% through influencer-led discovery.

2. Cost-effective and scalable

Hiring a UGC creator is usually far less expensive than working with a macro influencer, pricing on SHOUT starts at £65. Even better, the content can be repurposed across multiple platforms: TikTok ads, Instagram Reels, landing pages, and even in email campaigns. One piece of content pays for itself many times over.

3. Perfect for conversions

Influencers are great at getting people in the door. UGC is what convinces them to actually buy. Studies consistently show UGC performs best at the bottom of the funnel, where trust matters most (Precision Social).

Where Influencer Marketing Still Shines

That said, influencer marketing has its own strengths.

1. Reach and awareness

If you want to introduce your brand to as many people as possible, influencers are still one of the fastest ways to do it. A single collaboration with the right nano influencer or macro influencer can put your brand in front of thousands of potential customers.

2. Community credibility

Influencers build trust over time. When they recommend a product, their audience listens. This credibility can be a huge boost for brands trying to break into new markets.

3. Niche targeting

Nano influencers - those with smaller but highly engaged audiences - are especially valuable. They can deliver better engagement rates than larger influencers, and their recommendations often carry more weight because they feel personal.

ROI: UGC vs Influencer Marketing

So how do the two compare when it comes to ROI?

• UGC ROI: Lower cost, higher authenticity, stronger conversion rates. Perfect for performance marketing and evergreen content.
  
  

• Influencer ROI: Higher upfront costs but valuable for reach and brand awareness. Results can vary depending on the influencer’s audience and authenticity.

In short: influencer marketing builds awareness, while UGC drives action.

Why the Best Brands Use Both

The smartest brands in 2026 aren’t asking “UGC or influencer marketing?” They’re asking “How do we combine them?”

Here’s what that looks like in practice:

1. Influencers create the buzz. A campaign with a nano influencer introduces your brand to new audiences and sparks excitement.
   
   

2. UGC creators build trust. Meanwhile, UGC content shows real people using and enjoying the product, turning interest into sales.
   
   

3. Brands repurpose both. Influencer content can be repurposed as UGC in ads, and UGC can fuel retargeting campaigns that close the loop.

As MightyScout points out, “influencer and UGC strategies don’t compete, they complement each other.”

How SHOUT Brings It All Together

At SHOUT, we make it easy for brands to get the best of both worlds.

• Looking for UGC creators who can deliver authentic, scroll-stopping content? We’ve got them.
  
  

• Want to connect with nano influencers who can bring your brand into new communities? We’ve got those too.

Whether you’re a brand looking for UGC creators to fuel your ad library, or influencers to amplify your next launch, SHOUT gives you a single platform to find, connect, and collaborate.

Final Thoughts

UGC vs influencer marketing doesn’t have to be a battle. The smartest brands are using both, because together, they deliver reach, trust, and ROI that no other strategy can match.

If you’re ready to see how UGC creators and influencers can take your brand further, explore SHOUT today. The next big campaign starts with authentic content, and we make it easy to find.

Book a demo today