Instagram Reels Dominates Ad Share in 2025 as AI-Driven Engagement Soars
Instagram Reels accounted for 46% of total time spent on the platform by US users in 2025, up from 37% the previous year, according to Sensor Tower data. Advertisers swiftly adapted, with the majority of Instagram ads now served within Reels—a sharp increase from just one-third in 2024.
The shift has been fueled by AI-powered recommendation engines that analyze viewing behaviors to personalize content. "They’re surfacing content to the user, and as they get more signals based on what the user watches… that’s helped their recommendation engines get better," said Dan Flax of Neuberger Berman. Legacy ad formats are losing ground as brands prioritize Reels to align with user habits.
Daily active Instagram users grew 2% year-over-year, driven largely by Reels engagement. The format’s rise underscores the broader trend of short-form video dominating digital attention—and ad dollars.
