Some Instagram influencers who once gave away handbags or other luxury goods in exchange for following certain accounts on the service are giving away money – all in the name of helping out their followers in the time of COVID-19. But these giveaways aren’t quite what they seem.
Tech expert Omar Gallaga told Texas Standard host David Brown that the cash giveaways, which can sometimes offer as much as $5.000, are a way for Instagram users who make money from their accounts to boost their follower counts, and deliver those followers to sponsors.
Gallaga said instagram influencers who post about fitness or fashion often make the offers of cash to their followers if the followers then subscribe to a number of other accounts. It’s called a “loop” giveaway. This only makes influencers more popular and allows marketers to target people in the future.
“It’s about building networks,” said Gallaga. “… It’s about connecting brands with individual Instagram users who might not otherwise follow specific brands or influencers.”
What you’ll hear in this segment:
– How Instagram influencers are using giveaways to boost followers and sponsorship
– How a loop giveaway works
– What warning signs indicate that a giveaway is a scam
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