In the constantly evolving world of digital advertising, cutting costs while maintaining or boosting results is every marketer’s holy grail. Recently, we discovered a game-changing strategy that helped us reduce our cost per lead (CPL) by around 50% using an emerging but often underutilized advertising placement on Facebook and Instagram: Reels. In this article, we’ll unpack how we achieved such significant savings and share actionable best practices for leveraging Facebook and Instagram Reels ads effectively.
The Challenge: Rising Ad Costs on Traditional Placements
For one of our long-term clients, the monthly ad costs suddenly skyrocketed—leads that once cost a reasonable amount became twice as expensive. Faced with these unsustainable costs, we sought new opportunities to optimize our campaigns without sacrificing lead volume or quality.
That’s when we turned our attention to Facebook and Instagram Reels placements—a relatively new and less saturated space in the Facebook Ads ecosystem.
The Breakthrough: Harnessing Facebook and Instagram Reels
By shifting our ad delivery exclusively to Reels, we managed to bring down the cost per lead dramatically. For example, while previous campaigns running on all placements averaged around $70 per lead, our campaigns solely on Reels dropped to approximately $33 per lead—a nearly 60% reduction.
The Reels format delivers full-screen, vertical video content designed for mobile, which makes it highly engaging and different from standard feed or sidebar ads on desktop. With over a million impressions and nearly 500 conversions from our Reels campaigns, the results were clear: this placement warrants serious attention.
Step-by-Step Setup for Reels-Only Campaigns
Setting up Reels ads on Facebook and Instagram is straightforward:
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Placement Selection: During ad set creation in Facebook Ads Manager, deselect all placements except Facebook and Instagram Reels. This means unchecking all other feeds, right-hand side ads, stories, or messenger placements and leaving only the Reels option enabled.
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Creative Format: Use vertical video tailored for the Reels experience. The video should ideally be between 45 seconds and 1 minute to maximize engagement.
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Leverage Proven Content: We found that repurposing high-performing TikTok videos worked exceptionally well. Simply take your best full-screen vertical videos from TikTok campaigns and upload them into Facebook and Instagram Reels without modifications.
Key Best Practices for Running Successful Reels Ads
1. Use Proven Audiences
Avoid testing entirely new audience segments initially. Instead, use audiences that have demonstrated strong performance in past campaigns. This approach helps quickly optimize for performance by focusing on users who are more likely to convert.
2. Manage Budgets Wisely
Start with modest budgets for each ad set—roughly enough to achieve about 10 conversions per day. For many advertisers, this translates to around $300 to $400 per ad set, though the exact number will vary based on your market and cost-per-action benchmarks.
Lower starting budgets help mitigate risk while testing this new placement, and as you gather data, you can scale budgets systematically.
3. Focus on Engaging Video Content
The Reels format is video-first, so static images won’t perform well. Use your best vertical video content focusing on storytelling that resonates with your target audience. Videos that worked on TikTok often translate directly into success on Reels.
4. Optimize for Mobile Viewing
Since Reels are primarily consumed on mobile devices, ensure your videos are optimized for vertical viewing and catch the viewer’s attention quickly within the first few seconds.
Why Reels Ads Work So Well
Reels present an immersive, full-screen advertisement that feels less intrusive and more engaging compared to traditional Facebook or Instagram ads. This format taps into the rising popularity of short-form video content, capturing audience attention effectively. Additionally, because the space is less crowded, the cost per impression (CPM) tends to be lower, which contributes to reduced overall advertising costs.
Conclusion: Give Reels Ads a Try
If you’re facing rising ad costs, or if you want to explore fresh opportunities for your Facebook and Instagram campaigns, Reels placements should be on your radar. By using engaging vertical videos, targeting proven audiences, and managing your budgets carefully, you can unlock significant cost efficiencies—often slashing your cost per lead by up to 50% or more.
Our advice is simple: take your best-performing TikTok vertical videos, run them on Facebook and Instagram Reels, and closely monitor the results. You might be surprised at how impactful this largely underutilized placement can be for your lead generation efforts.
Ready to supercharge your ad campaigns? Start experimenting with Facebook and Instagram Reels today and watch your cost per lead shrink while maintaining strong conversion volumes!
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