Most of Instagram's ads ran on Reels in 2025, data shows

Core Insights - The increasing dominance of Reels in Meta's advertising strategy is evident, with over 50% of ads on Instagram being run through Reels in 2025, up from 35% in 2024 [1] - Reels accounted for 46% of time spent on Instagram in 2025, a significant increase from 37% in 2024, while Facebook's Reels usage reached 29% in 2025 [1] Group 1: Engagement and Revenue - The rise of Reels is crucial for Meta's engagement and advertising revenue across Instagram and Facebook, as vertical video content is increasingly favored by users [2] - AI-driven recommendation systems are enhancing user engagement by surfacing personalized video content, which has positively impacted Reels' revenue [3] - Advertisers are shifting their focus towards short-form video content to better reach consumers on Reels, reflecting a broader trend in advertising strategies [3] Group 2: Monetization Challenges - Despite the growth in Reels, monetization remains a challenge for Meta, as short-form videos typically generate less revenue compared to the main feed [4] - Meta's CEO highlighted the trade-off between increased engagement from Reels and the lower monetization efficiency compared to the Feed, indicating a potential revenue loss [5] - The overall activity on Instagram has increased, with daily active users up by 2% since last year, driven by Reels usage [5] Group 3: Future Projections - Analysts believe that the growing viewership on Reels could still lead to higher overall advertising revenue for Meta, despite the lower monetization rate compared to the Feed [6] - Meta's Reels have surpassed a $50 billion annual run rate, and analysts are keen to see growth figures in the upcoming fourth-quarter and full-year results for 2025 [7]