Instagram Reels: The Digital Graveyard Where TikTok Dreams Go to Die

Introduction

If you're watching the platform wars like a spectator at a slow-motion car crash, Instagram Reels is one of those wrecked sedans everyone keeps poking. Meta built Reels to be a direct challenger to TikTok’s crown jewel — short-form video that can turn an unknown creator into a viral sensation overnight. But the numbers, the creator testimonies, and the quiet churn tell a different story: Reels has become, for many creators, a "digital graveyard" where TikTok-style creativity goes to wither.

This exposé digs into why that narrative is surfacing in 2025. We’ll unpack the conflicting metrics, reveal where Reels is actually succeeding and where it's failing, and show how creators and brands are making hard choices about where to invest their content energy. Along the way we’ll cite the hard data: TikTok reached 1.88 billion monthly active users by Q2 2025 while Instagram sat at 1.63 billion (Q2 2025)[1]. Reels accounts for a meaningful slice of Instagram time — 41% of all time spent on the app[1] — yet engagement and reach patterns are complicated and often unfavorable to creators who thought migrating their TikTok content would be a straight swap for success.

This post is for the Platform Wars audience: marketers watching budget allocation, creators deciding where to build the next wave of their careers, and industry watchers hungry for an honest audit of algorithmic reality. Expect an investigative tone: we’ll surface contradictions (Reels showing higher raw reach in some studies but plunging engagement in others), highlight the human cost (creators leaving or plateauing), and map the real trade-offs between broad visibility and deep engagement. If you’ve ever reposted a viral TikTok to Reels and watched it get ghosted, this is for you. Read on — and bring your skepticism.

Understanding Instagram Reels vs TikTok (the ecosystem and the conflict)

At surface level, the fight looks simple: TikTok perfected short-form discovery; Meta copied that model and folded it into Instagram as Reels. But beneath that narrative are tensions in how content is surfaced, who benefits, and how creators are rewarded.

User counts tell part of the story. By Q2 2025 TikTok claimed 1.88 billion monthly active users (MAU) and Instagram 1.63 billion MAU[1]. Those raw totals suggest both platforms have massive scale, but scale is not destiny. Engagement quality — how viewers interact, share, and follow — is what converts views into careers. Several studies in 2024–2025 show mixed signals: some analyses reported Instagram Reels had a higher median reach (62% vs TikTok’s 38%) and a higher share of video views (64% vs TikTok’s 36%)[1]. Yet other metrics paint a worse picture: TikTok reportedly showed superior engagement rates — a headline figure of 58% engagement for TikTok versus 52% for Instagram in some reports[1]. Those percentages may refer to different definitions of "engagement" (like watch time, likes, comments, shares), which is a big reason the conversation is messy.

The creator economy felt a sharper sting. Reels’ average engagement rate dropped 20% year-over-year and settled at just 1.48% by late 2023 after peaking at over 2.5% in July 2023[3]. This downward trend hit larger accounts especially hard: accounts with 50,000+ followers saw average reach shrink by 49.95% between 2022 and 2023[3]. Ironically, smaller creators (0–500 followers) often see the highest engagement rates — 6.08% compared to 5.54% for those with 50,000+ followers[3]. That suggests the algorithm can still reward tiny accounts, but it's less forgiving to mid-tier creators who used to reliably convert their existing audiences to Reels viewership.

Why does this matter? Because the core value proposition of short-form platforms is discovery and conversion. TikTok’s "For You" feed remains renowned for surfacing content to non-followers and creating overnight virality. Anecdotal tests add color: when Justin Bieber posted identical videos to both platforms, the TikTok iteration reportedly hit a 49% engagement rate with 9.5 million likes, while the Instagram Reel of the same content managed a 3% engagement rate and 4.8 million likes[2]. Whether that’s an outlier or emblematic, creators notice.

Complicating the picture is trust and regulation. Privacy concerns have pressured TikTok: 74% of U.S. adults in 2025 reportedly expressed moderate to high concern over TikTok’s data practices[1]. TikTok has responded with features like a Privacy Dashboard and regional data centers in the US and Europe to address regulatory scrutiny[1]. Instagram, meanwhile, enjoys an 18% higher trust score among U.S. respondents, but Meta hasn’t been immune to privacy controversies — for example, an April 2025 backlash over alleged ad targeting tied to private messages (which Meta denied)[1]. These trust battlefronts influence who migrates where, but are not the only determinant.

Marketers are confused, too. In 2024, 58.2% of U.S. marketers planned to use Instagram Reels for influencer marketing while 54% planned to use TikTok[4]. That narrow margin suggests marketers value Reels’ integration with Instagram’s broader suite (Stories, Shopping, Feed), even if engagement quality is sometimes lower. In short: Reels offers reach and cross-platform visibility; TikTok offers engagement and virality. The collision between those strengths is where TikTok “dreams” meet Reels’ cold reality.

Key components and analysis: algorithm, creator economics, and metrics

To explain why Reels has become a "digital graveyard" for some creators, we need to unpack the algorithmic and economic mechanics that shape outcomes.

Algorithmic differences - TikTok’s algorithm favors interest signals and session-based content discovery. It aggressively surfaces content from creators a user has never seen if it matches viewing patterns. The consequence: strong virality for any creator who nails a trend or format. - Reels was retrofitted into Instagram’s networked model, which still privileges relationships (followers, likes on photos) alongside Reels’ discovery layer. Meta has doubled down on making Reels prominent in feeds, and it now accounts for 41% of all time spent on Instagram[1]. But prominence does not equal equitable distribution: the algorithm’s decisions prioritize content that keeps users on Instagram longer, which can mean a bias toward assets that are already trending or produced by creators Meta views as "safe bets."

Reach vs. engagement paradox - Some studies reported Reels getting higher median reach (62% vs 38%) and capturing 64% of video views vs TikTok’s 36%[1]. That sounds like a win for Reels — more impressions, more eyeballs. - However, engagement rates (the deeper metric of likes, comments, shares per impression) are where TikTok often wins. Reported engagement rates of 58% for TikTok vs 52% for Reels[1] show TikTok converts more of those impressions into interaction. - Engagement decline on Reels is notable: a 20% YoY drop to 1.48% by late 2023 after a 2.5% peak in July 2023[3]. That decline hits creators’ ability to build communities and monetize.

Creator economics and account-size impacts - Large accounts are seeing the steepest reach declines: accounts with 50,000+ followers experienced an almost 50% drop in reach between 2022 and 2023[3]. This is the opposite of what many creators expect; usually follower base gives a safety net. - Smaller creators paradoxically perform better on a percentage basis: 0–500 follower accounts saw a 6.08% engagement rate while large accounts hovered around 5.54%[3]. This suggests the Reels algorithm may be experimenting or favoring novel content from micro-creators, but mid-sized creators who migrated from TikTok are squeezed.

Brand and marketer calculus - Marketers’ slight preference for Reels (58.2% in 2024 planned to use Reels for influencer marketing vs 54% for TikTok)[4] reflects two realities: Reels sits inside Instagram’s broader commerce and discovery ecosystem, making it attractive for campaigns; and marketers still believe Instagram provides predictability and brand safety. - Yet predictability can be a trap. If engagement quality falls, ROI for influencer campaigns can drop, leading to wasted ad spend even with large view counts.

Regulation, trust, and perception - TikTok’s regulatory headwinds (EU investigations, U.S. scrutiny) prompted feature-level responses: Privacy Dashboard and regional data centers[1]. While privacy concerns are real (74% of U.S. adults reported concern in 2025)[1], the platform’s engagement mechanics have preserved its viral advantage. - Instagram’s trust advantage (18% higher trust score among U.S. respondents[1]) gives Meta leverage, but trust alone won’t resurrect creators whose content stagnates in Reels’ feed.

The bottom line: Reels can offer broad visibility, but visibility without sustained engagement, monetization mechanics, and creator satisfaction is a hollow victory. For many creators, Reels amplifies distribution in name only while eroding long-term growth signals that made TikTok attractive.

Practical applications: what creators, brands, and platforms should do now

This isn’t just theory — there are immediate, actionable steps creators and brands can take to avoid Reels-as-graveyard outcomes.

For creators: diversify, adapt, and experiment - Don’t throw all your content at one platform. The data shows different strengths: TikTok for engagement/virality, Reels for cross-platform visibility and integration with Instagram commerce. Maintain presence on both, but tailor content rather than reposting verbatim. - Test verticals and formats. Smaller accounts saw higher engagement rates on Reels (6.08% for 0–500 followers)[3]. If you’re micro-influencer, lean into Reels experimentation — you have the algorithmic advantage. If you’re mid-tier, double down on formats that historically performed on TikTok, but adapt delivery for Instagram’s audience (shorter hooks, stronger calls-to-action, and integrated CTAs for shopping or lead capture). - Track the right metrics. Vanity reach numbers (impressions) can mask horrible conversion. Measure follower growth rate, click-throughs to links/shop, true engagement rate, and retention on longer forms (Stories, Lives). Historical drops (1.48% engagement for Reels by late 2023 vs 2.5% peak)[3] mean you need higher signal-to-noise in reporting. - Build off-platform assets. Email lists, Patreon, Discord, and owned websites are insurance policies. If the algorithm buries your content, you want direct lines to your audience.

For brands and marketers: align KPIs and split budgets strategically - Split campaign allocation based on objective. Use TikTok for performance campaigns centered on engagement, virality, and UGC-driven awareness. Use Reels for product catalog visibility, integrated shopping, and brand-safe content that benefits from Instagram’s ecosystem. - Demand creator-level reporting. Large reach numbers on Reels look attractive, but ask for engagement rate, conversions, and attention metrics. Remember that large accounts saw reach declines of nearly 50% between 2022 and 2023[3]; historical performance may not predict future results. - Pilot A/B content: run identical creative on both platforms to validate which route yields better outcomes for your target. Anecdotal tests like the Justin Bieber example (TikTok 49% engagement, 9.5M likes vs Instagram 3% engagement, 4.8M likes)[2] underscore the need for data-driven allocation.

For platforms (Meta): fix incentives and creator pathways - Meta needs transparent creator incentives. If Reels is going to claim 41% of platform time[1], creators deserve predictable reward structures for that time investment. - Improve monetization clarity. Creators leave when monetization feels opaque or unrewarding. Reels must make monetization pathways explicit and reliable. - Address algorithmic fairness. Large accounts losing nearly half their reach[3] is a sign of an uncalibrated distribution system that discourages creators from investing in Reels long term.

Actionable takeaways (quick list) - Don’t repost TikTok content verbatim to Reels; adapt to platform nuance. - Split content budgets: TikTok for engagement and virality, Reels for shopping and cross-post visibility. - Measure conversion, not just impressions; focus on follower growth and retention. - Micro-creators should test Reels aggressively; mid-tier creators should diversify and optimize. - Platforms must provide clearer monetization and distribution transparency to keep creators engaged.

Challenges and solutions: the hard truths and how to fix them

Challenge 1 — Conflicting metrics and mixed signals Solution: Standardize reporting and interpret metrics contextually - Problem: Studies show Reels with higher median reach and more video views in some analyses (62% reach vs 38% for TikTok; 64% of video views vs 36% for TikTok)[1], while engagement metrics favor TikTok (58% vs 52%)[1]. These contradictions stem from inconsistent metric definitions. - Fix: Marketers and creators must standardize KPIs when comparing platforms (eg, average watch time per viewer, engaged audience percentage, conversion-per-impression). Demand that platforms offer comparable reporting exports for campaigns.

Challenge 2 — Declining engagement on Reels Solution: Re-engineer content strategy and push for platform reforms - Problem: Reels engagement fell 20% YoY to 1.48% by late 2023 from a 2.5% peak in July 2023[3]. Many creators feel the algorithm buries content without clear patterns. - Fix for creators: Prioritize community-leaning content (Q&As, Lives, responses) that drives repeat visits. Use Stories and Lives to re-engage audiences missed by Reels. - Fix for Meta: Provide clearer signals about what content the Reels algorithm favors, create incentive programs for mid-tier creators, and test distribution tweaks that don’t penalize formerly high-performing accounts.

Challenge 3 — Large accounts losing reach and mid-tier creators being squeezed Solution: Rebalance distribution mechanics and support creator ladders - Problem: Accounts with 50,000+ followers saw nearly a 50% reach decline between 2022 and 2023[3]. That discourages investment and causes creators to migrate or burn out. - Fix: Meta should implement a "creator ladder" program that rewards sustained creators with guaranteed distribution windows, monetization bonuses, and transparent content review processes to maintain trust.

Challenge 4 — Privacy concerns and regulatory pressure Solution: Proactive transparency and user control - Problem: 74% of U.S. adults expressed concern about TikTok’s data practices in 2025[1], prompting TikTok to roll out privacy dashboards and regional data centers[1]. Instagram enjoys higher trust but still faced backlash in April 2025 over alleged ad targeting tied to private messages[1]. - Fix: Both platforms must increase transparency on data handling, offer granular privacy controls, and communicate changes clearly to creators and marketers. For TikTok, regional data centers are a good move; Meta should double down on clear opt-ins and transparent ad-model disclosures.

Challenge 5 — Monetization clarity Solution: Open predictable revenue paths - Problem: Creators leave platforms that are inconsistent in payouts or opaque in how reach converts to income. - Fix: Platforms need predictable, tiered monetization programs: revenue shares, creator funds based on sustained performance, and tools for direct commerce (tips, subscriptions, shopping) that are easy to access and reliable.

Future outlook: platform trajectories and what to expect in 2025–2027

Short-term (next 12 months) - Continued dual-strategy usage. Marketers will keep splitting budgets: Reels for integrated commerce and brand presence, TikTok for performance and virality. The 2024 marketer split (58.2% for Reels vs 54% for TikTok)[4] will tighten into more tactical allocations where campaign objectives dictate platform choice. - Algorithmic tweaks and feature arms race. Meta will continue experimenting to keep Reels dominant in-app time (Reels already accounts for 41% of Instagram time[1]). Expect more cross-product features tying Reels to Shopping and Feed.

Medium-term (12–36 months) - Creator stratification accelerates. Platforms will increasingly tier creators into micro, mid, and mega categories. The mid-tier pain on Reels will force either platform policy fixes or mass migrations. The nearly 50% reach drop for larger accounts between 2022–2023[3] is a pressure point that may catalyze reforms or exoduses. - Regulatory and privacy shaping adoption patterns. TikTok’s move to regional data centers and privacy dashboards[1] likely stabilizes usage among privacy-conscious users, while Instagram’s trust advantage (18% higher in the U.S.)[1] remains a selling point for brands.

Long-term (3+ years) - Convergence and specialization. Both platforms will evolve distinct specialties: TikTok as the engine for cultural virality and trend incubation; Instagram (Reels+Feed+Shop) as the commerce-first, polished brand destination. Creators and brands that lean into each platform’s strengths will thrive; those who expect parity will be disappointed. - Platform accountability and predictable creator economies. If Meta wants Reels to be more than a distribution engine that wastes creator time, it must offer clearer, fairer monetization. Expect monetization contracts, guaranteed distributions, and potentially even third-party tools that bridge analytics across platforms to become standard.

Winners and losers - Winners: Creators who diversify and play platforms strategically; micro-creators willing to experiment on Reels; brands that tailor KPIs by platform. - Losers: Mid-tier creators who exclusively mirror TikTok to Reels and expect identical outcomes; platforms that ignore the creator churn problem risk losing talent to alternatives (emergent platforms or direct-to-audience solutions).

Conclusion

Instagram Reels is not a literal graveyard — it still delivers scale, and for some creators and brands it works well. But the "digital graveyard" metaphor is useful: Reels can turn the kinetic energy of TikTok-style creativity into dampened engagement, missed conversions, and frustrated creators when strategy and platform mechanics collide.

The evidence is clear and nuanced. TikTok had 1.88 billion MAU in Q2 2025 vs Instagram’s 1.63 billion[1]; Reels accounts for 41% of Instagram time[1]; yet engagement metrics tell a mixed story — some studies report Reels’ higher median reach[1], while engagement rates and creator economics have favored TikTok and exposed Reels’ declining engagement (down 20% YoY to 1.48% by late 2023)[3]. Mid-tier creators are especially bruised (50,000+ follower accounts saw a near 50% reach drop between 2022–2023)[3]. Privacy and regulatory dynamics matter too: 74% of U.S. adults reported concern about TikTok’s data practices in 2025, prompting features like privacy dashboards and regional data centers[1], while Instagram maintains a trust advantage among U.S. respondents[1]. Marketer intentions (58.2% for Reels vs 54% for TikTok in 2024)[4] highlight that many still believe Instagram’s ecosystem has unique value.

This exposé is not a verdict so much as a call to action. Creators must be strategic and metric-literate: adapt content, diversify distribution, and build owned audiences. Brands must align KPIs to platform strengths and demand meaningful reporting from partners. Meta must stop treating distribution as a replacement for predictable creator economics and provide clearer, fairer incentives.

If you run content like it’s 2020 — posting identical assets everywhere and expecting identical outcomes — you’ll find your TikTok dreams decomposing on Reels’ doorstep. But if you adapt, experiment, and insist on transparency from platforms, you’ll survive the platform wars and find places where your content genuinely thrives. The choice is stark: treat Reels like an experimental channel with specific uses, not a guaranteed replacement for TikTok’s lightning.