TL;DR
If you’re a small business deciding between Instagram Reels and Facebook Ads, the better ROI depends on your goals. Reels drive engagement and discovery, while Facebook Ads offer faster conversions and tighter targeting. This post compares both so you can invest smarter.
Platform Behavior: Who Uses What and Why It Matters
According to Pew Research, 68% of U.S. adults use Facebook, while about 50% use Instagram. But engagement levels on Instagram—especially Reels—are significantly higher.
| Platform | Key Demographics | Primary Use Case |
|---|---|---|
| Ages 30–64, suburban/rural | Community, offers, reviews | |
| Ages 18–35, urban, mobile-first | Discovery, short-form video |
Instagram Reels are great for top-of-funnel attention. Facebook Ads are better for direct conversions—especially if you already know your audience.
Cost and ROI Benchmarks: Facebook vs Instagram Ads
Recent benchmarks from WordStream and Social Media Examiner show some key differences:
| Metric | Facebook Ads | Instagram Reels Ads |
|---|---|---|
| Cost per Click (CPC) | $0.80–$1.20 | $1.05–$1.50 |
| Cost per 1,000 Impressions (CPM) | $7–$12 | $4–$8 |
| Click-Through Rate (CTR) | 0.9% | 1.1–1.4% |
| Engagement Rate | 1–2% | 3–6% |
Instagram wins in reach and engagement. Facebook still leads in click-based conversions.
Creative Investment: Time vs. Spend
Instagram Reels are often labeled “free”—but take hours to film, edit, caption, and post. They’re great for organic brand awareness and trend-driven content.
Facebook Ads require a monetary budget, but offer immediate reach and conversion potential when optimized correctly.
Real-World Examples from Our Clients
We’ve helped businesses across industries—builders, realtors, storage facilities—use both platforms strategically.
- A local home services provider used Facebook Ads to offer a seasonal special and saw a 6x return.
- A boutique owner launched Reels during a new product drop and grew by 2,000+ followers. We later retargeted those viewers with paid Meta Ads to drive sales.
- A regional storage company ran Reels to generate awareness, then closed leads with retargeted Facebook Ads. See that example in our case study.
When to Use Each Platform
Choosing between Facebook vs Instagram ads depends on your business model, audience, and ad goals.
Use Facebook Ads if:
- You’re focused on lead generation or bookings
- Your audience skews 30+
- You have a specific promotion or CTA
Use Instagram Reels if:
- You’re building brand awareness or a following
- Your content is visual or trend-friendly
- You have more time than ad budget
Use Both if:
- You want to create content once and reuse it across paid + organic
- You’re building a retargeting funnel
- You want long-term audience growth and short-term conversion
More Resources
- Meta Ads Library – See what other businesses in your niche are running.
- Crafting a Facebook Posting Schedule
- Top Tools for Commercial Photography
- Low-Budget Marketing Ideas for Local Builders
Are Instagram Reels better than Facebook Ads?
They serve different goals. Reels are better for building brand awareness and engagement. Facebook Ads are better for conversions and lead generation.
Can I run ads on both platforms at once?
Yes. Meta’s ad platform allows cross-promotion on Facebook and Instagram. You can even retarget Reel viewers with Facebook Ads.
Which platform is cheaper?
Instagram Reels often have a lower CPM. Facebook Ads may have a lower CPC depending on your targeting and campaign objective.
How many Reels do I need to post to get results?
Consistency is key. We recommend 2–3 Reels per week to build traction. You can repurpose them into ads later.
Can you help me run ads or create Reels?
Yes—we offer setup, strategy, and content creation for both platforms. Whether you’re starting fresh or scaling up, we’ll meet you where you are.