Sensor Tower: Reels accounted for 50%+ of all Instagram ads in 2025, up from 35% in 2024; Reels accounted for 46% of time spent on Instagram in the US in 2025
More than half of all ads on Meta's Instagram ran in the service's short-form video Reels product in 2025, up from 35% in 2024 …
Context & Ripple Effects
Instagram’s Reels monetization has progressed from the worldwide rollout of ads to a product that earlier coverage described as having a $50B+ annual run rate. Meta had also tied Instagram engagement growth to AI-driven Reels recommendations, making ad load and viewing time two sides of the same product strategy.
The new figures show that Reels is no longer a peripheral format within Instagram’s ad business: its share of ad delivery has risen faster than its already-large share of US time spent.
First-order effects
- Meta’s Instagram ad business is now more directly dependent on Reels inventory, with more than half of ads running in the format in 2025.
- Advertisers seeking Instagram reach must increasingly build and optimize vertical short-video creative rather than rely principally on feed placements.
Second-order effects
- The shift raises the value of Meta’s recommendation, creative, and measurement systems, because they must sustain engagement while accommodating a larger ad mix in Reels.
- Budget allocation within Instagram is likely to move further toward short-form video, putting pressure on feed-oriented creative workflows and campaign benchmarks.
Third-order effects
- If the pattern persists, short-form video will become the default commercial surface of social platforms: discovery algorithms, creator output, and ad products will be designed together rather than treated as separate feed and video businesses.
- The durable competitive question becomes commercial-intent density—whether platforms can add monetizable video inventory without weakening the viewing experience that supplies it.
The trend: Reels’ rising ad share is part of social media’s shift from social-feed advertising toward algorithmically distributed, short-form video monetization.