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Why You Should Use Reel Ads For Your Business

Are You Using Reel Ads To Promote Your Business On Instagram?

How did the fisher get all of the fish for their market? By using a good reel!

Kidding aside, we’re excited to teach you how to use Reel ads to find more people for your business. 

In the last 30 days, Instagram Reels helped us increase our reach by 45k, and most of those weren’t even our followers!

Our tests prove that the newest features in apps are usually the most effective and perform best. 

Reel ads are a super fun addition that Instagram has been putting much energy toward. Today, we’re going to learn: 

  1. What Reel ads are and how they work in the app.
  2. Why Reel ads are worth it.
  3. Why Reel ads might be cheaper than others.
  4. Ideas for Reel ads that you can run.
  5. Plus, we will share a Reel ad design video to help you out.

Let’s get into it!

What Are Reel Ads? 

Reels are Instagram’s answer to TikTok’s popularity, and they’ve specifically created the Reel algorithm to mimic the TikTok algorithm.

This means videos are much more discoverable on Reels than anywhere else on Instagram. 

According to Instagram,

“Reels is the best place on Instagram to reach people who don’t follow you and a growing global stage where anyone can discover brands and creators.

These ads will help businesses reach more significant audiences, allowing people to discover inspiring new content from brands and creators.”

Reel ads are a great alternative to TikTok if your audience isn’t on the platform or you’re just not ready for it yet.

Read this post next if you want to learn more about Instagram updates.

Where Will I See My Reel Ads In The App? 

Your Reel ads will be shown between non-sponsored Reel content, much like your Story or Feed ads. 

Your Reel ads will loop. Plus, users can also comment, share, save, and like your ads.

Your Reel ads will also be marked “Sponsored.”

Where Be Will My Reel Ads Displayed?

  1. In the Reels tab, accessible via the home screen (these play automatically, encouraging the viewer to keep watching).
  2. Via Reels shared in stories (these show up like a feed post shared to Stories – as a preview that viewers must click to view).
  3. On the Explore page
  4. In your feed

Instagram has never made such a creator-friendly platform.

It’s much easier to promote your Instagram page, get views, and be discovered by new folks on Reels than it is by any other means on Instagram. 

Why Are They Worth Using For Your Small Business? 

The Reels algorithm is built to favor new, engaging content from unknown creators.

It’s much more TikTok-esque in how it operates than the main feed or even the Stories feed algorithm. 

Currently, Instagram Reel ads are far less competitive and much less expensive than other ad placements on Instagram.

You should A/B test this for your business and see if it holds. 

If you’ve been using automated placements so far, here’s how you can check the performance of each post: 

  1. Go to Ads Manager.
  2. Click Breakdown.
  3. Select Placement from the dropdown.
  4. Your columns will reset to show your campaign, ad set, or ads stats by Placement.
  5. Compare placements cost per result, ROI, etc., to decide if you should keep showing your ads there or not. 

They Could Be Cheaper

Reel ads may cost you less for Reel ads than other placements because of the differences in audience behavior and intent.

There aren’t definitive numbers out yet…

…but early anecdotal evidence from our experimentation with our Reels shows that we’re reaching a lot of new folks organically (saving us money). 

We recommend running an A/B test so you can see if Reels Placements are less expensive (and work equally, too)…

…better than other placements like Stories or Feed.

That’s when you’ll know where to focus your paid efforts. 

They Are Less Competitive

As we’ve mentioned a couple of times, it’s much easier for your Reel to get a ton of views than it is for a post of yours or a Story of yours to go viral. 

Because the content is short-form and plays automatically, viewers spend more time on Reels and Reel ads.

This is an advantage to advertisers because there will be more places for ads to show that are less disruptive to the Reel experience. 

How To Set Up Your Reel Ads

  1. Go to the Ads Manager on Facebook.
  2. Click Create.
  3. Choose your advertising goal (for Reels, that will be Brand Awareness, Reach, Traffic, App Installs, Video Views, and Conversions.) 
  4. Fill out the ad campaign details. Watch the audience definition and estimated daily results to the right. 
  5. Choose ad placement. You’ll select Manual Placement and go to the dropdown next to Stories. Choose Instagram Reels. 
  6. Add a good CTA. (Some examples include shop now, read more, sign up, and click here.)

If you want to see the full tutorial of this process, then watch the video at the top of this post.

Developing Your Creatives

Before you run ads, make sure you have your creative ready.

And this not only applies to Reel ads but also every time you post on Instagram.

It would be best to use Reels to create your video from your phone.

Since users watch your Reel on their phones, you don’t need to stress quality.

If you’ve got a newish iPhone or Android, your camera is probably just fine for recording. 

You should: 

  • Film in the right size and orientation.
  • Write your copy.
  • Write your captions.
  • Choose your hashtags.
  • Choose your sound.
  • Use Reels editor to make it fit the content on the app. Let us show you around the Reel editor how to use it. 

Reel Editor Tools You Can Use During Filming

  • Audio

You can choose a sound from Instagram’s music library or upload your audio. Other users can use it in their videos if you upload your audio. 

  • AR Effects

Add effects to your video. Instagram and users create these (and yes, you could make your effect to help market your business.)

  • Timer and Countdown

You can record hands-free by pressing the record button. You’ll see a 3-second countdown timer after that. Then it’s recording!  

  • Align

If you’re doing the more advanced Reels and you need to line up your clips precisely, the align tool will be your best friend. 

  • Speed

Many sounds require your video to line up on beat drops or drum hits.

You can speed up or slow down certain parts of your clip to make sure you hit the right spots.

Then you have access to these tools:

  • Download – Save your Reel to your device.
  • Music – Add music to your Reel after filming.
  • Voiceover – Record a voiceover to add to your clip.
  • Effects – You can add these after filming for more development.
  • Stickers – Enhance your Reels.
  • Draw – Draw on your Reel.
  • Add Text – Add text on the screen and set duration. 

Then you’ll enter your caption, choose hashtags, crop your profile image, tag people, and mark partnership in Advanced Settings when applicable. 

Click Share when you’re ready to publish or save as a draft if you’re working ahead. 

Check Reel Analytics to Monitor Performance

Reels-specific performance metrics include:

  • Accounts Reached. This metric tells you how many unique Instagram users saw your Reel at least once.
  • Plays. This is the number of times your Reel has been played.

It could be higher than the number of accounts reached since some users may watch your Reel more than once.

  • Likes. This metric tells you how many users liked your Reel.
  • Comments. The number of comments on an individual Reel.
  • Saves. The number of times your Reel was bookmarked.
  • Shares. The number of times Instagram users shared your Reel to their story or sent it to another user.

Ideas For Your Reel Ads

  1. Share educational content relevant to your target audience.
  2. Showcase your products, services, or experience. Some options are:
  • Show new products on the shelves
  • Unboxings
  • Room or building tours
  • Service experience “trailers” that show short clips of your process paired with music
  1. Share behind-the-scenes content. Show a day-in-the-life, routine, or process video. 
  2. Announce sales or share offers. Draw the discount out of a bowl on camera, so the user doesn’t know it unless they watch the whole video. 
  3. Show your creation process (if you’re a maker or craft-based business) but do it ASMR style. 

How To Design Your Reel Ads

So now that you’re thoroughly convinced and know how to set everything up, you probably want to know how to design your Reels ads, right?

Of course, you do!

So go ahead and check out this tutorial on how to design animated Reels ads next. 


Have you tried Reel ads? How have they worked for you? We hope this post inspired you to give it a shot.

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