Reels is becoming the main hub for advertising on Instagram, according to data from market intelligence firm Sensor Tower, CNBC reported. According to the data, more than half of all Instagram ads in 2025 ran in the Reels section, up from 35% the previous year.

The Sensor Tower’s data shows that user time spent on Reels continues to climb. In the U.S., Reels accounted for 46% of time spent on Instagram, indicating that nearly half of user engagement now occurs within short-form video. On Facebook, Reels also gained momentum, representing 29%, up from 2024.

As time spent shifts, ad supply follows. Sensor Tower data suggests Meta is aligning ad placements with where users spend most of their sessions. This reflects a wider trend in which advertisers are allocating budgets toward short-form video.

Reels growth links to overall app activity

Since its launch in 2020, following the rise of TikTok, Reels has become central to Meta’s engagement format. Sensor Tower’s data also showed that increased Reels usage is tied to broader app engagement. Instagram’s daily active users grew 2% year-over-year, with the growth primarily driven by Reels viewership.

Meta has previously shared similar signals. In July last year, the company said video watch time on Instagram was up 20% year-over-year, with Reels making up more than 50% of all time spent on the platform. This placed Reels ahead of other features such as Stories and the main feed in terms of user attention.

Ad formats continue to evolve inside Reels

As Reels takes up a larger share of ad inventory, Meta has introduced more ad formats designed specifically for short-form video. Reports in October said the company was testing skippable ads within Instagram Reels. This format allows users to tap a skip button and return to their video.

Meta has also introduced Reels trending ads globally. The format uses AI to place ads after top-trending Reels.

More product changes to boost Reels

As Reels continue to grow, Meta releases new tools and updates to boost users' engagement. Instagram head Adam Mosseri has previously said the platform’s algorithm would prioritize Reels. 

Meta has leaned further into AI-driven recommendations. The company says more than 50% of Instagram’s feed is now filled with algorithmically suggested posts, many of which are Reels. However, users can add or remove interest topics that influence what appears in their Reels feed, rather than relying entirely on automated recommendations.

Meta is also testing ways to expand where Reels can be watched. The company has discussed plans for a separate Reels app and has begun testing a TV app that allows users to watch Reels on television screens.

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