Study: 101 on UGC and how to maximise returns

Across categories, marketers are rethinking what makes a creative work and for how long. Finance apps are doubling down on AI-powered UGC tutorials to boost retention, while dating brands are leaning into emotional triggers such as curiosity and relationship readiness. In addition, social platforms are betting on storytelling and education, while GenAI apps are fine-tuning the balance between eye-catching effects and sustainable engagement.

This is according to AppsFlyer’s latest "State of creative optimisation" report that pulls back the curtain on what’s working across verticals and why marketers are adjusting for not just installs, but long-term user value.

As GenAI tools flood the market, the photo and video and GenAI categories are rapidly converging. Users want creativity at speed and marketers are under pressure to keep up. UGC testimonials are currently leading the way, boosting retention by 36% compared to other creative formats.

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Comparison and before versus after hooks remain dominant, delivering a strong install per mille (IPM) of 3.68 and commanding 40% of spend. However, user POV hooks such as “I used this filter and got a magical result” offer stickiness. These first-person ads foster connection and signal authenticity, driving more durable engagement despite lower IPM, said the report. 

Time-saving motivations continue to resonate with audiences looking for instant value, with slogans such as “Edit your video in seconds” or “Auto-enhance in one click” converting well. In contrast, ads built around customisation and personalisation, which make up 45% of spend, tend to underdeliver, showing lower IPM and middling retention.

Within UGC formats, tutorials and app reviews are still under-leveraged.

Testimonials account for the majority of spend, but users who engage with more instructional content retain at significantly higher rates.

Meanwhile, dating apps are shifting away from one-size-fits-all creative. The category has no single dominant hook, reflecting a push to segment messaging by user intent. Problem-solution formats make up 28% of spend with copy such as “Break the ice in three easy steps” or “Meet the right match without endless swiping”.

By contrast, hooks based on curiosity and mystery perform best, especially in social and search environments. Prompts such as “Guess who swiped right?” pair intrigue with emotional reward and currently generate the highest IPM (1.05) despite representing just 8% of spend. Sensory-driven visuals such as real-life date scenes also rank highly for performance.

When it comes to motivation, casual dating and new experiences dominate budgets and conversions, with copy such as “Swipe for fun, meet new people tonight.” However, these users don’t always stick around. Deeper motivations, such as “Ready for something real?”, linked to long-term relationships, retain 15% better. This is a key factor for subscription-driven monetisation models.

UGC also plays a strong supporting role, but most of the spend goes to testimonials. Interestingly, tutorials, while a much smaller share, drive higher-value engagement, underscoring the importance of creative testing across different audience states.

Interestingly, finance apps continue to evolve their creative playbook, with a growing emphasis on education, simplification and trust. Creatives that focus on user simplification especially in complex areas like crypto and investing show strong IPM and Day 7 retention, despite receiving only average spend.

Social proof is a standout hook in the finance vertical. While it accounts for just 5% of spend in social and search, it drives the highest Day 7 retention (21%). FOMO-driven lines such as “90% of users hit their goal in 30 days” or “The $1,000 challenge everyone’s talking about” are proving sticky, even if their niche targeting limits scalability.

Instant gratification hooks are also popular especially in DSP environments where creatives such as “See your savings grow instantly” or “Get cashback the moment you spend” are widely deployed. These DSP campaigns deliver 17% better Day 7 retention than their social counterparts, indicating strong synergy between message and channel.

On the UGC front, testimonials currently account for 88% of spend, but tutorial-style content delivers 37% better retention, suggesting a clear opportunity to rebalance budgets.

Creative trends in social media apps point to the growing power of narrative. Storytelling hooks with character arcs, emotional twists or real-life journeys remain underused, capturing just 6% of spend. However, they lead the pack on Day 7 retention (8.4%), showing that users engaged by stories are more likely to stay active.

Social proof remains a solid performer in this category, offering a strong mix of IPM and retention. These creatives tap into viral culture and user milestones from “This filter is going viral” to “Watch what 10M users are doing now” and help build a sense of community.

The leading motivation across social media creatives is entertainment, discovery and inspiration. Ads positioned around this theme such as “Be the first to discover viral content” tend to have modest IPM but the highest retention (7.1%) among all motivations.

In UGC, tutorials and app reviews are outperforming testimonials by a wide margin. Despite receiving 60% less budget, these formats generate 45% higher IPM and a 17% lift in Day 7 retention.

That said, celebrity-led campaigns remain a go-to strategy for non-gaming apps, but not all fame converts equally. Ads featuring musicians may drive installs through name recognition, but they fall short on Day 7 retention. In contrast, social media influencers, while less efficient on IPM, tend to generate stronger long-term engagement, likely due to higher perceived relatability.

TV personalities strike a balance, showing the best IPM with a smaller spend. Campaigns such as “Join [TV host] for weekly cooking tutorials” combine recognisable talent with consistent value delivery, resulting in strong ROI.

Female-targeted celebrity ads, especially those led by female influencers, deliver 60% stronger IPM than male-focused ones, and slightly better retention. Still, they remain underfunded, hinting at untapped growth.

Interestingly, celebrities perform best when they play a supporting role in a broader narrative. Campaigns where the celebrity is part of a group or journey “Watch [celebrity name] and friends explore our newest features” result in lower installs but the highest retention rate at 12.1%. These creatives offer more context and story, deepening user engagement beyond the star power.

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