In the fast-paced world of digital advertising, Instagram continues to evolve as a powerhouse for business marketing. With the rise of short-form content and vertical video, two formats dominate Meta’s ad inventory in 2025: Instagram Reels and Stories Ads.
Both offer immersive, mobile-first experiences, but which one delivers better return on investment (ROI) for your brand?
In this blog, we’ll compare Reels vs Stories Ads, outline key differences, and offer actionable insights for businesses running Instagram ads for business in 2025.
Why Instagram Remains Critical for Business Advertising
Instagram has matured into one of the most ROI-positive platforms for business marketing. With over 2 billion monthly active users, Instagram provides:
- High engagement rates
- Deep audience targeting via Meta Ads Manager
- Seamless integration with Facebook and WhatsApp
- Native shopping, messaging, and video features
With Reels and Stories commanding more than 50% of user attention on the platform, it’s essential for businesses to know where to place their ad dollars.
What Are Instagram Stories Ads?
Instagram Stories Ads are full-screen, vertical ads shown between user stories. They last up to 15 seconds per slide and are skippable.
Benefits of Stories Ads:
- Instant, lightweight engagement
- Swipe-up/link options for fast conversions
- Broad reach with little creative barrier
Ideal For:
- Flash sales
- Event announcements
- Retargeting warm audiences
What Are Instagram Reels Ads?
Reels Ads appear in the Reels feed and mimic native short-form video. They allow up to 30 seconds of immersive storytelling with audio and captions.
Benefits of Reels Ads:
- High discoverability via algorithmic feed
- Enhanced virality and organic boosts
- Greater creative storytelling and branding
Ideal For:
- Brand awareness
- Top-of-funnel reach
- Creative product demos or testimonials
Instagram Ads for Business: Key Differences Between Reels and Stories
| Feature | Stories Ads | Reels Ads |
| Duration | 15s max | Up to 30s |
| Placement | Story Feed | Reels Tab, Feed |
| Discoverability | Limited to followers/audience | High algorithmic reach |
| Engagement Type | Swipe, Tap | Comments, Likes, Shares |
| Best Use | Conversion & Retargeting | Brand Discovery & Awareness |
Cost & ROI Comparison: Stories vs Reels in 2025
CPM (Cost per 1,000 impressions):
- Stories Ads: $6–$9
- Reels Ads: $5–$7
CPC (Cost per Click):
- Stories: $0.70–$1.20
- Reels: $0.50–$0.90
Average ROAS:
- Stories: 1.8x–2.3x (especially for retargeting)
- Reels: 2.0x–2.6x (better for new customer acquisition)
Reels may edge out Stories in 2025 due to its viral algorithm and younger audience skew.
When to Use Instagram Stories Ads
- You’re promoting time-sensitive offers
- You want fast click-throughs
- Your creative assets are static or limited
- You’re retargeting website visitors or add-to-carts
When to Use Instagram Reels Ads
- You’re building brand equity
- You want to tap into creator culture
- You need reach across a wider audience
- You’re experimenting with new content formats
Creative Tips for Instagram Stories Ads
- Use vertical images or 9:16 videos
- Include clear CTAs: “Swipe Up,” “Tap to Buy”
- Design for quick comprehension (first 3 seconds matter)
- Add urgency with countdown stickers or limited-time offers
Creative Tips for Instagram Reels Ads
- Hook viewers in the first 2 seconds
- Include on-screen text with key messaging
- Leverage trending audio tracks and challenges
- End with a subtle CTA: “Learn more,” “Follow for more”
Tools to Optimize Instagram Ads for Business
- Meta Ads Manager: Budget allocation, audience segmentation
- Creative Hub: Ad mockups and inspiration
- Hootsuite/Buffer: Post scheduling & performance monitoring
- Canva/Premiere Rush: Easy video editing
Case Study: E-Commerce Brand Using Both Formats
A DTC fashion brand A/B tested Reels and Stories ads:
- Reels focused on outfit styling tips using influencer UGC
- Stories promoted time-limited discount codes
Results:
- Stories: 3.2x ROAS on retargeting
- Reels: 2.7x ROAS on prospecting + 5,000 new followers
Future Trends for Instagram Advertising in 2025
- More AI-driven creative recommendations from Meta
- Stories and Reels blending via unified feed experiences
- Increased monetization options for creators = more influencer ads
- Better attribution across devices with Conversion API
Using Instagram Ads for Business Growth: Additional Strategies
Beyond the choice between Reels and Stories, businesses should consider multi-format ad strategies. Incorporate:
- Feed ads for consistency and retargeting
- Explore page ads to reach interest-based audiences
- Live ads during influencer streams or product launches
Integrating these with Reels and Stories amplifies brand visibility and conversion potential.
Collaborations and Influencers
Partnering with Instagram influencers in your niche can boost reach. Reels, in particular, thrive on influencer-led storytelling. Ask influencers to:
- Showcase product use cases
- Share unboxing experiences
- Create UGC for ads
Building Brand Voice
Reels offer an opportunity to humanize your brand. Share behind-the-scenes, team stories, or customer testimonials to build trust.
A/B Testing
Always test:
- Different CTA placements
- Static vs. video content
- Time of day
- Caption length and tone
Data from these tests helps refine your approach and improve ROAS.
Final Verdict: Which Format Wins?
Both Reels and Stories have their place in a well-rounded Instagram ads strategy. Reels win for discovery, engagement, and creativity. Stories excel at speed, clicks, and retargeting.
If your goal is to build brand awareness and social following, lean into Reels. If you’re driving conversions and scaling bottom-of-funnel efforts, invest in Stories.
Partner with a Results-Driven Instagram Ads Agency
Instagram ads for business in 2025 demand more than just good visuals; they require a holistic strategy.
At EON8, we help brands build data-backed campaigns that maximize ROI across both Reels and Stories. Whether you’re launching a product or scaling D2C sales, we craft ad ecosystems that convert.