‘The birth of an entire format’: Instagram’s short-form video feature Reels started as a TikTok copycat but has become a lucrative revenue source for influencers

• The short-form TikTok competitor Instagram Reels first launched in August, and since then influencers and brands have incorporated the feature into their sponsored-content packages and marketing plans. 
• But the feature is still relatively new and pricing has not become standard across the industry, with some influencers charging a premium for Reels and others charging around the same as for an in-feed Instagram post.
• Business Insider spoke with creators, managers, and industry insiders about how much money Reels are worth and how the industry is approaching the new Instagram feature.

Instagram Reels launched in August as a TikTok copycat, but it has since carved out more of a separate identity and become a staple product for some Instagram influencers. And some brands have begun to pay high price tags for these short-form videos.

Instagram has updated the feature several times since its launch. Creators can now make longer videos (which increased from 15 seconds to 30 seconds), include ways to buy products directly through Instagram’s shoppable features, and use the “paid sponsorship” feature.

“Instagram is really pushing Reels right now,” said Becca Bahrke, the senior director of talent at management firm Socialyte.