Meta expands overlay ads to Instagram Reels

Meta added overlay ads to Instagram Reels, offering new ad placements to reach users with banner ads while they watch reels.

The big picture. This move aligns with Meta’s ongoing strategy to monetize Reels across its platforms, following the earlier introduction of overlay ads on Facebook Reels.

Details:

• Overlay ads are now available on Instagram Reels.
• Two formats: single-image and image carousel ads.
• Appear as banner ads at the bottom of the screen during Reels playback.

Why we care. Instagram Reels is a rapidly growing content type with high user engagement. This update allows advertisers to tap into this audience more effectively, and the option for single-image or carousel ads provides flexibility in crafting messages and showcasing products

How to access:

Advertisers can select these placements in Meta Ads Manager through:

1. Advantage+ placements
2. Manual placements → overlay and post-loop ads on Reels
3. Manual placements → Stories and Reels

Between the lines. Meta is gradually rolling out these features, meaning they may not be immediately available to all advertisers.

Bottom line. This expansion offers advertisers new ways to engage with users consuming short-form video content on Instagram, a key growth area for Meta.