More than half of advertisements on Instagram, owned by Meta, were shown through the short-video product Reels in 2025, up from 35% in 2024, according to Sensor Tower market data.
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In the U.S., Reels accounted for 46% of the time users spent on Instagram in 2025, rising from 37% in 2024. On Facebook, the figure reached 29%, also an increase from the previous year.
This trend highlights the growing role of Reels in Meta’s strategy to boost engagement and advertising revenue on both Instagram and Facebook. Vertical videos remain a key focus for platforms leveraging AI-powered recommendation systems to keep users engaged longer.
Dan Flax, senior research analyst at Neuberger Berman, noted that the value of these platforms comes from their AI’s ability to deliver personalized content, enhancing recommendation engines and driving ad revenue.
Advertisers followed this shift, focusing on short-form videos to reach wider audiences through Reels. Ibrahim Youssef, senior data analyst at Sensor Tower, stated that traditional services are seeing ad spend shift toward Reels to meet users where they engage most.
However, short videos generally generate lower revenue per view than Instagram’s main feed, a challenge acknowledged by Meta CEO Mark Zuckerberg. He noted in a 2023 earnings call that while Reels increases overall engagement, it can reduce profitability compared to the main feed.
Despite this, overall engagement growth from Reels contributed to a 2% increase in daily active Instagram users over the past year. Analysts say the growing share of Reels views can still translate into higher total ad revenue for Meta.
Zuckerberg announced in October that Reels on Instagram and Facebook surpassed $50 billion in annual play value, with analysts closely monitoring the impact in Meta’s Q4 and full-year 2025 results to be released on January 28.
