From January through July 2025, our Meta media strategy for one of our key clients underwent a decisive shift: a large-scale reallocation of budget into Reels placements. What looked like a risky bet was, in fact, a strategically sound move into one of Meta’s most efficient growth channels.

Our recalculated and verified performance data tells a different story than some internal reports may have suggested. Reels is a cost-competitive, scalable placement that outperforms expectations on both reach and efficiency.

The data shows:

• Spend Surge: Reels investment grew by 150%+ in June/July, becoming 40%+ of the total Meta budget.
• Cost Efficiency: Reels drove clicks at a lower CPC ($5.01) than all other placements ($5.29).
• Breakout Winner: In-stream reels emerged as the single most efficient placement in the account — $0.92 CPC with a 2.5% CTR.
• Platform Dynamics: Facebook Reels significantly outperformed Instagram Reels, but the bigger story is the overlooked in-stream format.

The takeaway: This pivot was a turning point. The question is no longer whether Reels deserves budget, but how to optimize at scale for maximum business impact.

The Mid-Year Reallocation

• From Jan–May, Reels absorbed ~20–30% of spend.
• In June, spend doubled, and by July, Reels represented 41% of the budget.

We clearly recognized that Reels had proven its viability and earned its place as a pillar of the media plan.

The Real Cost of Reels

Initial internal reads overstated costs. Verified data reveals:

• CPC Advantage: $5.01 vs. $5.29 for all other placements.
• Cheaper Reach: Reels CPM at $25.87 vs. $32.41 elsewhere.
• CTR Balance: 0.52% (slightly lower than other placements), but efficiency holds.

This positions Reels as both a traffic driver and awareness engine.

Breaking Down the Winners

When we unpack the category, the story becomes clearer:

• In-Stream Reels: $0.92 CPC | 2.51% CTR | Scaled potential, barely tapped (~$38K spend).
• Ads on Reels: $1.38 CPC, strong secondary performer.
• Facebook Reels: $4.92 CPC, stable and scalable.
• Instagram Reels: $9.16 CPC, underperforming given budget size.

The opportunity lies in aggressively scaling In-stream Reels while fixing Instagram creative performance.

Efficiency Audit

Across Meta placements, the leaders and drains emerge:

• Top Performers: In-stream reels, Rewarded video, Facebook Notifications.
• Bottom Performers: Explore home, Profile feed, Instagram Reels (high-cost, low-return).
• Workhorse: Feed placements remain the budget backbone, but with declining marginal efficiency compared to Reels.

Strategic Recommendations

1. Double Down on Reels
   • Maintain 40–50% of Meta budget in Reels.
   • Justified by reach + efficiency.
2. Scale In-Stream Reels Aggressively
   • 5x current budget test.
   • Monitor for performance stability.
3. Placement-Specific Creative Strategy
   • Reels demand native-first creative (fast edits, trending audio, authentic storytelling).
   • Especially critical for Instagram, where CPC is highest.
4. Cut Inefficient Placements
   • Eliminate Explore home, Profile feed, Right column unless proven to add downstream value.
5. Elevate Measurement
   • Move from CPC/CTR → CPL, CPA, ROAS.
   • Track down-funnel performance by placement to guide smarter reallocation.

Closing Thought

The pivot to Reels was the right call. Now, the opportunity is to turn efficiency into scalable business growth. By reallocating smartly, aligning creative to placement, and measuring what truly matters, BMG360 can help brands capitalize on Reels not as a fad, but as a long-term profit center within Meta advertising.