Reels Drive 27% Higher Engagement: Instagram’s New Skippable Ads Could Redefine Video Marketing

Instagram has quietly begun testing skippable ads within its Reels experience, marking a noteworthy shift in the short-form video ad ecosystem. According to media outlet Mumbrella, the new ad format shows a countdown timer in the top-right corner of the screen, which transitions into a “Skip Ad” button once the ad begins. The parent company, Meta Platforms, confirmed the “limited test” and said the format is designed to “assess whether the format helps users discover businesses.”

Several factors appear to drive this move:

• As Reels becomes a dominant content format on Instagram, the company needs ad formats that align with user behaviour (swipe, short attention span, quick decisions). Data shows that Reels are now about 38.5 % of feed posts and drive stronger reach than other formats.
• Advertisers are shifting more budget into short-form video. Instagram’s global ad revenue is projected to grow significantly in 2025 – estimated to hit around US$69.7 billion, with Reels-style ads generating 27 % higher engagement than static feed ads.
• Instagram is under pressure from rivals like TikTok and YouTube (Shorts) which already offer skippable ad formats. By introducing skippable ads, Instagram attempts to stay competitive in the ad-monetisation race.
• Historically, Instagram has also been testing unskippable ad breaks (ads users cannot skip) but those have drawn criticism for disrupting user experience. Offering a skippable option may be more palatable to users and brands alike.

Here are a few of the important data points that provide context:

• Reels now reach over 726.8 million users and account for 55.1 % of Instagram’s ad audience according to one source; they also comprise roughly 35 % of total Instagram usage in 2025.
• Engagement on Reels averages around 1.23 % – higher than photos (0.70 %) and carousels (0.99 %).
• Instagram’s ad audience (Q1 2025) is 1.47 billion users globally, with its projected ad revenue reaching US$69.7 billion in 2025.
• One statistic indicates Reels ads generate 27 % higher engagement than static feed ads in 2025.
• From Mumbrella’s reporting: Instagram confirmed the test of skippable ads within Reels and stated they will not share this particular ad revenue with creators (as of the test phase).

What this means for brands, creators & users:

For brands and advertisers, this new format potentially offers a sweet spot: access to a large Reels audience (with high engagement) and a skip button meaning only viewers genuinely interested will stay, making the ad view more qualified. That can improve efficiency of ad spend.

For creators, the move is more nuanced. On one hand, more ad inventory within Reels could mean higher demand (and potentially higher CPMs). On the other hand, Instagram’s note that it won’t share revenue from these ads (at least initially) means creators may not directly benefit. It also raises concerns about whether increased ad loading might slow organic reach or impact user experience.

For users, the skippable format is likely preferable to unskippable ad breaks- less forced disruption, more control. But it also signals Instagram’s increasing commercialisation of the Reels experience. If the skip rate becomes high, Instagram may adjust formats (e.g., shorten pre-skip countdowns or impose more restrictions).

Conclusion

Instagram’s testing of skippable ads in Reels is a strategic shift reflecting the broader reality of short-form video, fierce competition among platforms, and advertisers’ growing appetite for more dynamic formats. With Reels already commanding a massive share of attention and ad reach, the addition of skippable ads may well become a major revenue booster, provided Instagram balances advertiser needs with user experience.

The post Reels Drive 27% Higher Engagement: Instagram’s New Skippable Ads Could Redefine Video Marketing appeared first on Small Business Connections.