Home topics news Credit: Wojtek Witkowski Advertising | Marketing News Advertising | Marketing AI-powered ads or authentic UGC: Which drives better results? Yajush Gupta November 8, 2024 Meta’s recent announcement of AI-powered ad creation tools has sparked debate within the industry. While the company aims to streamline the advertising process, experts argue that these tools may undermine the authenticity and effectiveness of ad campaigns. As the user-generated content (UGC) market continues to grow, businesses are increasingly turning to real people to connect with their audience. Meta recently introduced new AI-powered ad tools at Advertising Week, including video border expansion and background replacement for ads. While the announcement reflects the growing role of AI in digital advertising, many experts are questioning whether these tools genuinely meet the industry’s demand for authenticity, particularly as User Generated Content (UGC) continues to dominate consumer engagement. Meta’s latest AI offerings arrive amid a wave of new tech-driven ad solutions. Amazon launched a similar AI tool to create ad videos from product photos, and TikTok recently introduced “Symphony,” which uses AI-generated avatars. However, experts believe these tools fall short of industry needs. “These features aren’t revolutionary; they don’t solve the real challenges faced by e-commerce businesses,” said Simona Vasytė, CEO of AI solutions provider Perfection42. “The focus should be on UGC, which drives revenue by resonating authentically with consumers. AI developers should be creating tools that amplify creators’ content, not replace it.” Studies show that UGC drives 29% higher web conversions than campaigns without it, and