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Is Instagram Reels Monetization Better Than TikTok?

  • Felix Rose-Collins
  • 2 min read

Intro

As short-form video dominates social media, creators want to know: where can you earn more—Instagram Reels or TikTok? Both platforms offer massive audiences and viral potential, but their monetization systems are different. Here’s how they stack up for creators who want to maximize earnings.

Instagram Reels Monetization: How It Works

Instagram offers multiple ways for creators to earn from Reels:

  • Reels Play Bonus: (invite-only, select regions) Pays creators for high-performing Reels. Rates typically range from $1 to $8 per 1,000 views, with reported bonuses of $1,200 or more for 1 million views. Program eligibility and caps change frequently.

  • Ads on Reels: Some creators earn a share of ad revenue placed within or alongside Reels, with CPMs (cost per 1,000 views) in a similar range to bonus payouts.

  • Brand Sponsorships: Instagram has a mature influencer marketing ecosystem. Sponsored Reels can pay from $250 to $5,000+ per post depending on audience, niche, and engagement.

  • Affiliate & Shop Features: Creators can sell products or use affiliate links directly through Reels.

TikTok Monetization: How It Works

TikTok offers a mix of direct payouts and brand partnerships:

  • Creator Fund: Pays around $0.02 to $0.04 per 1,000 views (about $20–$40 for 1 million views)—lower than Instagram’s Reels payouts.

  • Creativity Program Beta: (newer, for longer videos) Reported to pay $0.50 to $1 per 1,000 views for videos over one minute.

  • Brand Sponsorships: TikTok’s viral nature means even smaller accounts can land deals, but typical rates are a bit lower than Instagram for similar audiences.

  • TikTok Shop & Affiliate: TikTok is aggressively pushing in-app shopping and affiliate sales, which can become significant for product-focused creators.

  • LIVE Gifts: Viewers can send virtual gifts that can be redeemed for cash.

Side-by-Side Earnings Comparison

Feature Instagram Reels TikTok
Direct payout (1K views) $1–$8 (bonus/ads) $0.02–$1 (fund/program)
Sponsored post (10–100K) $250–$5,000+ $100–$2,500+
Affiliate/shop sales Yes Yes
Virality & growth Strong Strong

Key Takeaways:

  • Instagram Reels pays more per view than TikTok’s Creator Fund and most TikTok programs, especially for US/UK creators.

  • Sponsored content rates are typically higher on Instagram due to the platform’s established brand relationships and older demographic with more purchasing power.

  • TikTok can deliver massive reach and faster growth, which can lead to more frequent brand deals or affiliate sales, even if per-view payouts are lower.

Which Platform Is Best for Monetization?

  • For direct payouts: Instagram Reels usually wins, especially for eligible creators in high-CPM regions.

  • For rapid follower growth: TikTok can help you scale fast, and viral success can boost other income streams.

  • For brand partnerships: Both platforms offer strong opportunities, but Instagram’s influencer market is more mature and typically pays more for similar reach.

Strategy for Maximum Earnings

Many top creators use both platforms. They leverage TikTok for viral growth and cross-promote to Instagram, where higher direct payouts and more lucrative sponsorships can turn attention into income.

Tips:

  • Focus on original, high-quality content—avoid reposting the same video with watermarks.

  • Track performance and audience location to target high-CPM markets.

  • Use analytics tools like Ranktracker to optimize content strategy and identify the best platform for your niche.

Conclusion

Instagram Reels monetization is generally stronger than TikTok, especially for creators eligible for bonuses or ad revenue programs and those focused on brand sponsorships. However, TikTok’s explosive growth and expanding shop ecosystem can’t be ignored. For most creators, the best approach is a multi-platform strategy that combines the strengths of both.

Felix Rose-Collins

Felix Rose-Collins

Ranktracker's CEO/CMO & Co-founder

Felix Rose-Collins is the Co-founder and CEO/CMO of Ranktracker. With over 15 years of SEO experience, he has single-handedly scaled the Ranktracker site to over 500,000 monthly visits, with 390,000 of these stemming from organic searches each month.

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