Instagram Reels beats TikTok on several key metrics, and Meta's ad capabilities are only getting stronger.
The biggest rivalry of 2025 isn’t Eagles vs. Chiefs or Kendrick vs. Drake…
it’s TikTok vs. Reels! While we keep an eye on a possible TikTok ban in the US, let's look deeper at the legacy platform that is Meta.
Is advertising on Meta still effective?
Meta's (which encompasses Facebook, Instagram, Threads, and WhatsApp) advertising journey has evolved dramatically since Facebook's first sponsored stories in 2004. The platform pioneered highly targeted social advertising by leveraging its rich user data, expanding to Instagram in 2013 and later incorporating advanced features like Dynamic Ads and Custom Audiences.
Despite Apple's iOS privacy changes in 2021 impacting targeting capabilities, Meta's ad platform remains compelling for marketers, reaching over 3.19 billion monthly active users across its family of apps.
According to 2024 data, 71% of online users are more likely to base purchase decisions on reviews on social media.
Additionally, HubSpot's 2024 Marketing Trends Report showed that even though the cost per thousand impressions (CPMs) on Meta platforms like Facebook and Instagram are generally increasing, the advanced targeting capabilities yield a significant return on investment (ROI), making them a valuable channel despite the costs.
How much does Meta make from ads?
Although TikTok has doubled its US ad revenue since 2022 (now totaling $11B), Meta still accounts for 60% of all US media spend, (increasing 17% year-over-year to total $66B in 2024).
Worldwide, Meta's ad revenue totals a whopping $160B in 2024 and is projected to reach $183.8B in 2025!
And despite fast growth from emerging social platforms like Snapchat and Reddit, Instagram is still the primary driver of Meta's growth, accounting for $37B of US revenue this year.
Is Meta going to skyrocket in 2025?
With TikTok's future uncertain, Instagram Reels is poised to capture its audience and advertising dollars, offering a similar short-form video format within an established platform.
Reels' integration with Instagram's massive user base and robust advertising tools makes it a compelling alternative for brands seeking to maintain their reach and engagement.
But Instagram faces headwinds in hooking Gen Z and Gen Alpha users who show strong attachment to TikTok and YouTube. It's unclear yet which channel would reign supreme in the case of a TikTok ban.
Is it better to advertise on Meta or TikTok?
As with all media planning decisions, it depends on your brand and your audience.
What matters most is not which platform, but providing culturally relevant, on-brand content and excellent customer service on social media.
While TikTok is still available as an advertising channel, brands should continue to consider it if their audience indexes highly for TikTok. (See our own agency contingency plan here).
However, looking at one of our own top CPG client’s Reels-only campaigns in Q4, Meta Reels significantly outperformed TikTok in terms of key metrics, like:
Cost-efficiency
Reels delivered impressions at a lower CPM ($2.80 vs. $3.27) and clicks at a lower CPC ($1.03 vs. $1.48) than TikTok. This indicates Reels is getting more bang for each buck!
Higher Engagement Rate
Reels also had a substantially higher engagement rate (9.32% vs. 7.25%) than TikTok. This means viewers were more likely to interact with Reels content, whether through likes, comments, shares, or saves.
Video Completion Rate
While TikTok boasts more total video completes, the much lower Video Completion Rate (VCR) on TikTok (0.75% vs 1.5% on Reels) suggests that Reels viewers who do start a video are much more likely to watch it to completion. The higher VCR on Reels is a strong indicator of more engaged viewership.
What are the major changes in Meta Ads in 2025?
Meta recently added to its suite of AI-powered advertising capabilities, like:
Advantage+, which automates ad targeting and placement
Advantage+Creative, a generative AI tool that creates several variations of a creative asset to rotate throughout a campaign and prevent ad fatigue
Advantage+Sales (previously known as Advantage+Shopping) a social commerce tool tying ad views to actual conversions; and now,
Advantage+Leads, which uses AI to help brands find high-quality leads
Nicola Mendelsohn, head of Meta’s Global Business Group, says the company is driving massive user engagement through AI recommendations, noting that businesses using Advantage+Sales Campaigns have seen an average 22% increase in ad performance.
On average, ad campaigns using these genAI features have seen 11% higher clickthrough rates and a 7.6% higher conversion rate compared with those that don’t use the tools.
While Meta strengthens its technical abilities, we’re devising creative ways to make social more searchable, shoppable and “omni-funnel” for brands every day.
Consumers are spending on Meta – are you?
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