If you feel like you’re seeing more video ads than ever while scrolling through Instagram, you aren’t imagining it. New data released on January 20, 2026, reveals a massive shift in how Meta is monetizing its most popular app.
For the first time, Instagram Reels ads have surpassed traditional feed posts to become the dominant ad format on the platform. According to a report from Sensor Tower, more than 50% of all advertisements shown on Instagram in 2025 were served within the Reels tab (via CNBC).
This is a significant jump from 2024, when Reels accounted for just 35% of the total ad inventory. The change shows just how quickly Meta has successfully “TikTok-ified” its ecosystem to keep up with changing user habits.
The reason for this shift is simple: users are spending an incredible amount of time in the vertical video feed. In the U.S. alone, Reels now account for 46% of all time spent on Instagram. That is a massive increase from the 37% share it held just twelve months ago. “Legacy services are seeing ad volume shift away, with advertisers prioritizing more Reels to meet users where they are,” said Abraham Yousef, a senior insights analyst at Sensor Tower.
Whether you are on the bus or waiting in line for coffee, the “infinite scroll” of short-form video has become the default way to consume content. Advertisers have realized that a static image in a feed is much easier to scroll past than a 15-second video that starts playing automatically with sound.
Meta CEO Mark Zuckerberg recently noted that Reels has reached an annual revenue run rate of over $50 billion. While traditional feed ads still tend to make more money per individual impression, the sheer volume of Reels being watched is making up the difference.
The platform is also benefiting from a slight increase in daily active users, which grew about 2% over the last year. This growth is being driven almost entirely by the “addictive” nature of the Reels algorithm, which keeps people in the app longer than traditional photo sharing ever did.
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