This is what we mean by loop giveaways
This is a kind of raffle in which influencers try to lure their followers with countless brands and products. In order to be able to participate in the draw, however, the subscribers must meet a few conditions beforehand – and these are closely related to other Instagram accounts.
Influencers usually ask as part of their loop giveaways to follow up to 100 other influencer accounts in addition to their own account. In the comments, Instagrammers often formulate the conditions of participation for the raffle according to the same principle: “Follow me first, then go to the Instagram account XY and subscribe to all accounts that the account XY follows.” What sounds harmless is in fact a sophisticated business strategy and can bring a large number of new followers to Instagramers overnight.
Subscribers are attracted with valuable gifts
Influencer subscribers are often enthusiastic about the generosity of their idols. When participating in such competitions, one goal is in the foreground: winning a advertised branded product, which many followers often could not afford in real life. The products to be won are often worth several thousand euros. So it is not uncommon for an Instagrammer to raffle a total of ten iPhones, 20 PlayStation 5 consoles and 20 MacBooks on their site. Fashion items and other branded products can also be found under the expensive prices of influencers. As the US online magazine VICE reports, model and influencer Kylie Jenner recently raffled nine luxury bags by Yves Saint Laurent and US $ 20,000 in prize money on her Instagram page.
Influencers hope for new followers
But what advantage do the content creators – as they call themselves – derive from such loop giveaways?
Outwardly, influencers often try to sell their competitions as a sign of their solidarity with their followers and as an expression of their gratitude. The successful giveaway account “giveback_giveaways” responds to a thank you message from a follower with the answer: “We really appreciate that and are pleased that it is not taken for granted,” reports VICE.
But influencers with loop giveaways often pursue a completely different goal: The quick gain of many new subscribers on their Instagram page. As VICE found out in research, the prices and the expected increase in followers through the giveaways vary greatly. For example, the Telegram group of a giveaway organizer recently advertised influencers with 5,000 to 10,000 new followers – for a hefty price of around 450 euros. But according to the magazine’s reports, there are also some competitions that are much more expensive. A future giveaway in cooperation with a well-known German rapper is likely to cost the smaller influencers around 5,800 euros – a high price that will probably still be worthwhile for the content creators given the large number of potential new followers.
Large reach enables expensive advertising deals
Because by participating in such giveaways, influencers can let their subscription numbers explode overnight. The consequence, however, is often not only higher subscriber numbers – the full-time bloggers also hope for more interaction on their own side from their investment. By increasing the number of comments and likes on their side, influencers can draw the attention of large companies to themselves and conclude worthwhile cooperation deals with them. Because the greater the reach of an influencer, the more money potential advertising partners are willing to pay if the Instagrammer recommends company products and brands on his site and sells them to his fans.
Smaller influencers pay to participate
The organizers of the loop giveaways are often part of the social media world and are looking for well-known influencers for their competitions who will promote the giveaway on their page. The high-reach Instagrammers often even receive a fee for promoting the competition – so what looks like an act of generosity is usually paid to the influencers who have been recruited. Because the number of followers participating in the competition often increases enormously through the post of an Instagramer with a large reach – that is, more potential, new subscribers for the smaller, lesser-known influencers. However, unlike the big influencers, they have to pay for their participation in the raffle.
Loop giveaways for influencers harbor these risks
But the tempting loop giveaways also harbor some risks for influencers. According to reports from influencers, it is not uncommon for followers to withdraw their subscription immediately after the competition ends. As a full-time blogger who goes by the name of Maria from the Instagram account “The Chic Pursuit” explains to the Instagram marketing platform Later, Instagram users often only subscribe to a page for the duration of the giveaway. As part of a loop giveaway, the influencer probably paid $ 500 for participation – in the hope of collecting long-term followers who would fuel her future advertising collaborations. But the effects of her investment turned out differently than the blogger had wished: “During the giveaway, my follower engagement was the best there has ever been,” the influencer told Later. But that didn’t last long, she says: “When the giveaway ended, so did the commitment. And not only that, it fell deeper than ever before,” is the blogger’s disappointed summary. But these weren’t the only negative effects that Maria had to record from participating in a loop giveaway: “Influencer platforms have access to everyone […] Data. So if an account is accessed by more than 10,000 followers in a day, this is immediately suspicious, “she says. According to her, this has led to potential cooperation partners dropping out and existing partnerships between companies being terminated. Because advertising partners are of no use from artificial followers – companies can only earn money with “real” subscribers, who stay on the site due to qualitative contributions and can be addressed via advertising deals.
Pauline Breitner / editors finanzen.net
Image Sources: Antonio Salaverry / Shutterstock.com
–
