Intro
Instagram Reels has become one of the platform’s hottest features, and with the rollout of Ads on Reels, creators now have another way to earn money from their short-form videos. But how much can you actually make when Instagram runs ads on your Reels? Here’s what you need to know.
How the Ads on Reels Program Works
Instagram’s Ads on Reels program allows eligible creators to earn money when ads are shown to viewers as they watch Reels. Unlike YouTube, Instagram doesn’t share a fixed percentage of ad revenue. Instead, payments are based on a performance model—how many plays your Reel receives and how advertisers value your specific audience.
Typical Earnings for Ads on Reels
Earnings can vary widely depending on your niche, engagement, audience location, and video performance. On average, creators report earning between $0.50 and $4 per 1,000 Reels plays (CPM). For example:
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A creator might earn about $1,200 for a Reel with 1 million plays if their audience is primarily in high-value regions like the US, UK, or Canada.
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In contrast, some creators have reported lower earnings, such as $70 for 3 million views, especially if their audience is primarily in lower-CPM regions or engagement is low.
Your payout is determined by:
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Audience location (US and Western Europe pay the highest CPMs)
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Engagement (likes, shares, comments, watch time)
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Content originality (Instagram prioritizes original content and may exclude videos reposted from other platforms)
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Niche and advertiser demand
Program Eligibility and Requirements
Currently, Ads on Reels is an invite-only program. You must:
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Have a business or creator account
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Comply with Instagram’s partner monetization and content policies
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Consistently create original Reels that attract real engagement
When eligible, you’ll see the option to enable ad monetization for your Reels in your Professional Dashboard.
Maximizing Your Ad Revenue on Reels
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Focus on creating original, trend-driven content that keeps viewers watching and interacting.
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Target high-value audiences (like US, UK, Canada) to increase your average CPM.
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Avoid using watermarked content from other platforms—Instagram may demonetize or reduce reach for these videos.
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Monitor your analytics to see which Reels generate the most ad revenue, and double down on those formats or topics.
Conclusion
Instagram pays creators for ads on Reels based on video performance and audience value, with most CPMs ranging from $0.50 to $4 per 1,000 views—sometimes more for high-engagement content in premium regions. The more original, engaging, and widely-watched your Reels are, the more you can earn. Using analytics tools like Ranktracker can help you refine your content strategy and target higher-paying audiences to boost your ad revenue on Reels.
