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Meta’s New AI Ad Tools Fail to Bring Authenticity to Advertising– While UGC Market Is Expected to Grow 29.4% Annually by 2030.
Meta has announced AI features for ad creation such as video border expansion. AI experts point to the rising importance of the User Generated Content (UGC) market, which is expected to hit $18.6 billion by 2028, emphasizing that businesses need tools that enhance real creators’ work instead of replacing them.
At Advertising Week, AI dominated discussions as Meta unveiled new AI editing tools for static and video ads. Amazon introduced a tool that generates videos from product photos. And TikTok launched Symphony to test AI-generated avatars in advertisements. However, AI experts from Perfection42, a leader in custom visual AI solutions, argue that these tools fall short of what brands need for true engagement—authentic user-generated content (UGC).
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“Meta’s new tools are not transformative,” said Simona Vasytė, CEO of Perfection42. “Expanding video borders or background replacement won’t drive revenue for e-commerce businesses. UGC videos are what actually convert, and advancing AI tools in this area would better support brand growth.”
Higher conversion rates on sites featuring UGC content
Studies underscore UGC’s impact, with 29% higher conversion rates on sites featuring UGC content. About 79% of people said UGC influences their purchase decisions, according to a Stackla survey. Tools like Arcads are emerging to tap into UGC potential. They allow users to submit profiles for licensed, AI-enhanced advertising use. This include lip-synching and voice generation, which Meta’s offerings do not support.
However, Vasytė noted that AI-driven content risks losing authenticity if overused. “Tools like Arcads can replace UGC entirely, but that should not be the goal,” she cautioned,. She highlighted that buyers often detect and reject AI-driven content that lacks the genuine feel of real consumer experiences.
The UGC industry is set for a 29.4% annual growth rate through 2030. It is increasingly vital to advertisers seeking authentic brand connections. To meet rising demand, Vasytė suggested using AI to enhance static UGC into dynamic formats, saying, “AI can transform static images into animated, video-like experiences that retain the authenticity UGC audiences expect.”
Innovations in AI-powered image-to-video tools allow brands to animate static content with effects and movement, creating engaging visuals that align with brand identity and audience expectations. Vasytė explained, “These tools don’t replace creators; they support them. Animated UGC boosts engagement, often translating into higher click-through rates and conversions.”
The global UGC market is projected to reach $32.6 billion by 2028, with North America leading in revenue, followed by the fast-growing Asia-Pacific and EMEA regions.
