Instagram Reels has gone from TikTok dupe to Meta’s golden child—and it’s not slowing down anytime soon. As of 2025, Reels are driving major growth on both Instagram and Facebook, becoming the fastest-growing content format across Meta platforms. The question is: should your business jump on the Reels bandwagon?
If you’re looking to grow your brand’s visibility, reach new audiences, and boost engagement without blowing your budget, the short answer is: absolutely. Here’s a breakdown of what’s new, what’s working, and why Reels might just be the smartest move for your video marketing strategy this year.
What’s New: Overlay Ads Are Picking Up Speed
Instagram is pushing hard to monetise Reels, and the latest move in their ad strategy rollout is Overlay Ads. These appear on Facebook Reels (with similar tools being tested for Instagram) and come in two flavours:
- Banner ads – a semi-transparent bar that runs along the bottom of the Reel, allowing the content to play uninterrupted.
- Sticker ads – static image ads that creators can place anywhere in their Reel.
If an overlay ad appears in your content, you (as the creator) earn a slice of the ad revenue. It’s Meta’s play to keep creators and brands invested—and it’s also a fresh way to get your business in front of new eyes without disrupting the user experience.
Organic Reach Is Still Up for Grabs (for Now)
Instagram always gives its newest features a little extra love in the algorithm. That means if you’re posting to Reels, you’re more likely to see your content pushed out to wider audiences—no ad spend required.
It’s one of the few remaining “free exposure” opportunities in the social space. If you’re sitting on great video content, now’s the time to get it in front of people via Reels before the algorithm tightens up.
Reels = More Engagement Than Traditional Instagram Videos
Conviva analysed the performance of Instagram Reels versus traditional IG video content across pro sports teams in the US—and Reels smashed it. In some cases, they delivered up to 67% more engagement, particularly in leagues like the NFL.
And it’s not just sports. Brands across all industries are seeing stronger performance with Reels thanks to their short, snappy, and native feel. If you’re still relying on static images or long-form feed videos, Reels might be your engagement game-changer.
70% of Marketers Are Doubling Down on Instagram
A fresh survey from Marketing Charts in 2025 found that 70% of marketers plan to increase their activity on Instagram this year, with short-form video at the top of their to-do list.
That number is far higher than the 19% who said they’re increasing activity on TikTok, signalling a clear shift in where marketers are placing their bets. For brands, that means a stronger content race—and more incentive to level up your Reels game.
Who’s Watching? Mostly Under 35s
Statista data shows that the majority of Instagram users globally are under 35:
- 32.1% are aged 25–34
- 29.9% are aged 18–24
- Only 16.3% are 35–44, and the numbers drop off from there
So, if your audience skews younger, Instagram Reels is one of the most effective channels to reach them. Even for brands targeting 35+, Reels can work brilliantly if your content is educational, entertaining or storytelling-led.
Instagram Is Prioritising Video—Full Stop
According to Instagram boss Adam Mosseri, the app is no longer “just” a photo-sharing platform. In 2025, Meta is going all in on video, with new feed formats, immersive full-screen content, and video-first experiences across both Instagram and Facebook.
For brands, this means photos are taking a back seat. Video content—especially short-form like Reels—is where the algorithm attention and audience engagement now live.
Reels vs TikTok: The Better Bet for Brands?
While TikTok still wins the viral trend game, Instagram Reels is increasingly seen as the smarter platform for businesses. Here’s why:
- More ad formats and monetisation tools
- Greater cross-platform integration (Stories, Feed, IGTV, Facebook)
- A slightly older, more brand-friendly audience
- The ability to schedule Reels in advance using third-party platforms (even if IG’s API still requires manual approval)
If you’re serious about using video to build your brand and convert eyeballs into customers, Reels gives you a wider toolkit and more reliable reach—without having to chase trends every two minutes.
So, Are Reels Right for You?
If you’re a business looking to:
- Increase engagement
- Reach a younger (but purchase-ready) audience
- Build brand visibility without breaking the bank
- Use short-form video strategically across your marketing channels
Then yes—Reels should absolutely be part of your 2025 video marketing strategy.
Need a Hand with Your Reels Content?
At We Know Video, we help brands create scroll-stopping, on-brand Reels that actually drive results. Whether you’re starting from scratch or levelling up your current video content, we’ll help you build a Reels strategy that cuts through.
Ready to get serious about short-form content? Get in touch via info@weknowvideo.com.au or contact us here.
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