🚨 How New $43K Fines Are Shaping the Future of UGC Ads (and how we're helping marketers fall in line ASAP)

Hi Friends!

Q4 2024 took us from zero to 100 real quick (literally):

• September started at 0 organic sales calls

• December ended averaging 100 per month

Why? Because in October 2024, the FTC’s final ban on deceptive reviews and testimonials with $43K fines for non-compliant UGC ads and influencer posts went into effect. Marketers are unprepared, and the risks are rising.

• 👩🏽‍🏫 Vocab Pulse Check: A UGC ad (user-generated content ad) is an advertisement using content created by customers or users instead of the brand itself. This can include reviews, testimonials, photos, videos, and social media posts.

• 🌎 Industry Pulse Check: UGC = the lifeblood of advertising. Here are some key 2024 stats from our friends at Flockler (source):

  • 93% of buyers find UGC very helpful for making buying decisions

  • 92% of buyers believe in reviews and personal stories over traditional ads

  • 35% of Gen Z predicts UGC will be more credible than branded content in 3 to 5 years

  • 31% of buyers find UGC ads more memorable than conventional ads

Key Insights From Sales Calls:

• Bad News: ZERO companies had a proactive a proactive compliance plan for their 2025 UGC and influencer marketing 2025 plan in place before chatting with me. 1 walked me through their current (very manual) process with existential dread in her eyes.

• Good news: Our #1 aspiration in life is to be happy soothe your UGC compliance pains.

How We’ve Improved Based on Your Feedback:

UGC Risk Checker Tool Version 1 (Nov 2024)

• User Feedback: 🟠 better than current methods but 🔴 too slow to deliver results, 🔴 not informative enough, 🔴 not comprehensive enough

  

  SwayID UGC Risk Checker Tool V1

UGC Risk Checker Tool Version 2 (Nov 2024)

• User Feedback: 🟠 faster results, 🟠 more comprehensive 🔴 but still not informative enough, and 🔴 definitely not intuitive

  

  SwayID UGC Risk Checker Tool V2

V3 (Jan 2025 so far)

• User Feedback: 🟢 fast results, 🟢 informative, 🟢 intuitive, 🟢 comprehensive

  

  SwayID UGC Risk Checker Tool V3

Why This Matters To Customers:

With $43,792 fines already in effect, marketers need a tool that keeps them compliant and operational.

Questions? Feel free to reach out—and keep the feedback coming!!

Kaeya

PS: I turned 32 today and stepped into a new mantra—Stay Hungry, Cut the Foolishness 🍎