• Instagram ads

Instagram Reels vs Regular Videos: Revenue Breakdown

  • Felix Rose-Collins
  • 2 min read

Intro

Instagram has rapidly evolved into a creator-first platform, offering multiple ways to monetize content. Two of the most popular formats are Instagram Reels and Regular (Feed/IGTV) Videos. But which one offers greater earning potential? Here’s a breakdown of how revenue works for each, the key differences, and what creators should know to maximize their income.

Understanding the Formats

Instagram Reels

  • Short-form, vertical videos (up to 90 seconds)

  • Prioritized by Instagram’s algorithm

  • Featured in the dedicated Reels tab and Explore page

Regular Videos (Feed & IGTV)

  • Feed videos: Up to 60 minutes (IGTV), typically horizontal or square

  • Appear in your main Instagram feed, profile grid, and sometimes Explore

  • IGTV has been merged into the general video experience since late 2022

Monetization Options on Instagram

1. Instagram Reels Monetization

Instagram introduced the Reels Play Bonus (and similar incentives) to encourage creators to produce engaging short-form content. Creators can earn directly through the following:

  • Reels Play Bonus (invite-only): Payments based on views and engagement, with payouts varying widely.

  • Ads on Reels: Instagram started rolling out overlay and post-loop ads, sharing ad revenue with creators.

  • Brand Deals & Sponsored Content: Brands love Reels for their viral potential and younger audience.

Typical Payouts:

  • Direct Reels payouts: Range from $0.80 to $8 per 10,000 views, depending on engagement, geography, and content niche.

  • Sponsored Reels: Brands may pay more for Reels, given their visibility and trend factor.

2. Regular Videos Monetization

Traditional feed and IGTV videos have their own revenue channels:

  • IGTV Ads: Instagram began sharing ad revenue from IGTV ads with creators (when the program was active). This is less prominent now as IGTV merges with regular video.

  • Feed Video Sponsorships: Brands partner for sponsored posts, stories, or longer-form content.

  • Affiliate & Product Links: More common on regular videos than Reels, due to format and link integration.

Typical Payouts:

  • IGTV/Feed ad revenue: Historically lower CPMs than Reels; payout range is about $0.20 to $2 per 1,000 views.

  • Sponsored Feed Videos: Payments depend on reach, engagement, and niche—can range from $250 to $10,000+ per post for established creators.

Revenue Comparison: Reels vs Regular Videos

Factor Reels Regular Videos (Feed/IGTV)
Algorithm Priority Very High Medium
Direct Payouts $0.80–$8 per 10,000 views $0.20–$2 per 1,000 views
Brand Appeal High for viral, trendy content High for storytelling/long-form
Ad Integration Overlay/Post-loop ads Feed/IGTV ads (less prominent)
Discovery Reels tab, Explore, Feed Feed, Profile, Explore
Sponsorship Rates Often higher per view Depends on audience/niche

Which Format Should You Focus On?

  • Reels: Ideal if you want algorithm-driven reach, quick virality, and higher direct payouts. Best for trending content, challenges, and engaging short-form videos.

  • Regular Videos: Great for storytelling, in-depth tutorials, and building a loyal audience. Ideal for sponsored deals with brands needing more context and longer product showcases.

Maximizing Your Instagram Earnings

  • Leverage Both Formats: Use Reels for reach and viral growth; regular videos for deeper engagement and brand collaborations.

  • Track Performance: Use Ranktracker to analyze your top-performing posts, discover the best hashtags, and optimize content timing.

  • Diversify Revenue: Combine direct payouts, sponsorships, affiliate links, and merchandise to maximize earnings.

Using Ranktracker to Optimize Content

Ranktracker provides actionable insights for both Reels and regular videos:

  • Find trending hashtags and keywords to boost discovery

  • Monitor competitor performance for inspiration

  • Track engagement metrics to fine-tune your posting strategy

Conclusion

Instagram Reels currently lead in algorithm visibility and direct payout rates, especially for creators aiming for rapid growth and higher view counts. Regular videos still play a crucial role in audience loyalty and lucrative brand partnerships. By blending both formats and leveraging analytics from tools like Ranktracker, creators can maximize their earning potential across Instagram.

Felix Rose-Collins

Felix Rose-Collins

Ranktracker's CEO/CMO & Co-founder

Felix Rose-Collins is the Co-founder and CEO/CMO of Ranktracker. With over 15 years of SEO experience, he has single-handedly scaled the Ranktracker site to over 500,000 monthly visits, with 390,000 of these stemming from organic searches each month.

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