Jun 28, 20237 min read

Instagram Loop Giveaways: The Comprehensive Guide for Brands

In the world of Instagram marketing, brands are always looking for new, innovative ways to grow their follower base and engagement rates. Among these strategies, one that has generated much buzz in recent years is the Instagram Loop Giveaway. However, there's a degree of controversy associated with them. Are they truly beneficial for your brand or just a short-term gimmick? Does all the follower growth consist of bots? Among my clients, many think the giveaways are the best thing ever, and many think they are horrible. What is the truth? This comprehensive guide will delve into the world of Instagram Loop Giveaways, outlining their potential benefits, drawbacks, and costs, as well as their effectiveness for different types of brands and products.

What are Instagram Loop Giveaways?

Instagram Loop Giveaways are promotional events where a group of Instagram users or brands collaborate to host a single, unified giveaway event. The host can often be a single celebrity, usually a "C" or "D-list" celebrity. Participants are required to follow a loop of accounts, typically by following the accounts on a list, to be eligible for the giveaway prize. Prizes can range from products to services, or even cash, depending on the brands involved. The prize(s) is(are) typically not one offered by any of the loop of accounts that must be followed. The critical factor is looking for a host with a similar demographic to your own, not focusing on the actual prize given away.

Here are some examples of products that could be used in a Loop Giveaway, grouped by common Instagram themes:

Fashion and Beauty

1. Designer handbags or accessories

2. High-end makeup and skincare products

3. Fashionable clothing items from a trendy brand

4. Personal styling or shopping sessions

Health and Fitness

1. Fitness equipment like yoga mats or weights

2. Protein powders, health supplements, or meal kits

3. Membership or classes at a local gym

4. Activewear from a popular sports brand

Tech and Gadgets

1. Latest model smartphones or tablets

2. Noise-canceling headphones or smart speakers

3. Smart home devices like Amazon Echo or Google Home

4. Game consoles or video games

Home and Décor

1. Trendy home décor pieces like rugs, lamps, or artwork

2. Kitchen appliances like a high-end blender or espresso machine

3. Luxury bed linens or throw pillows

4. Subscription boxes for home décor or DIY crafts

Travel and Leisure

1. Luggage sets from a renowned brand

2. Gift cards for airlines or hotels

3. Travel gear like cameras, travel pillows, or portable chargers

4. Experiences like a guided tour or adventure activity

Food and Beverage

1. Gourmet gift baskets with chocolates, wine, or coffee

2. Subscription to a meal delivery service

3. Cooking classes or chef's table dining experiences

4. High-end cookware or kitchen gadgets

Again, the Instagram host chosen must align with the audience's interests and be desirable enough to encourage participation.

Pros of Instagram Loop Giveaways

Rapid Follower Growth: One of the most evident benefits of Instagram Loop Giveaways is the rapid growth in follower numbers. As participants must follow all accounts in the loop to qualify for the prize, this tactic can substantially boost your follower count. Typically the cost is $0.10 a follower.

Extremely low-cost tactic: There are very few marketing tactics that you can engage for about $2,000. Typically buy-ins for loops or celebrity giveaways start at $2,000.

Increased Visibility and Reach: With multiple brands involved, the combined reach can extend far beyond what any single brand could achieve alone. The joint promotion can help expose your brand to new audiences, boosting your brand visibility.

Community Engagement: Loop giveaways can drive high levels of engagement, with users tagging friends, sharing posts, and commenting. This activity level can improve your Instagram algorithm ranking, leading to further exposure.

Boosts Brand Partnerships: You can build beneficial relationships and alliances within your industry or niche by partnering with other brands in your loop giveaway.

Cons of Instagram Loop Giveaways

Low-Quality Followers: The followers gained from loop giveaways may not be genuinely interested in your brand. They are likely there for the prize, which can lead to a high unfollow rate once the giveaway ends. Typically, 20% of new followers will unfollow your brand in the coming weeks. The ultimate cost per retained follower is still likely far above any other tactic.

Impacts Engagement Rates Negatively: Brands may notice decreased engagement rates after the giveaway. This happens because the new, largely disinterested followers won't engage with your regular content as they did with the giveaway post. Typically, if you see a 3% engagement rate on your Instagram account, you might drop to 1.5%. Overall, you will have more engaged followers, but you will have less as a percentage. Instagram will ding you for this, and you may notice that your content isn't showing up as frequently or prominently in your followers' feeds. Instagram's algorithm prioritizes showing users content from accounts they regularly interact with. Suppose your newly gained followers are not engaging with your content beyond the giveaway. In that case, Instagram may interpret this as a lack of interest in your brand. This, in turn, can lead to your posts being shown less frequently, even to your regular, engaged followers.

Furthermore, the surge of disengaged followers can dilute your efforts to understand your core audience better. With many inactive or uninterested followers, it becomes challenging to decipher what kind of content resonates best with your genuine followers. Your analytics data could be skewed, making it harder to implement effective content strategies.

These effects can be particularly damaging for brands relying heavily on Instagram for business, as a lower engagement rate can significantly impact visibility, reach, and sales. Therefore, while Instagram loop giveaways can be an effective tool for quickly gaining followers, it's essential to consider the potential impact on engagement rates and overall content performance.

Potential for Unfavorable Brand Associations: Partnering with brands that don't align well with your brand image or values could dilute your brand message or even harm your reputation. This one is easy to avoid. Ensure you see the demographics and media kits for any brands you are considering engaging with.

Are All the Followers Bots?

I recently had a potential new client swearing that 100% of giveaway followers are bots. But, they didn't have the budget or timetable for other forms of slow, steady social growth. Not all followers gained through Instagram Loop Giveaways are bots. In fact, the percentages of bots are quite low. However, any type of Instagram contest or giveaway can indeed attract a certain percentage of inauthentic followers, such as bots or accounts that are only interested in winning prizes, not engaging with the brand's content.

Accounts that participate in giveaways for the sole purpose of winning a prize are likely not bots, but they are typically not interested in the brand's content either. After the giveaway, these accounts may unfollow the brand, remain inactive followers, or even block the brand's account. Again, the percentage of unfollows averages about 20%.

What Types of Products and Brands Do They Work For?

Instagram Loop Giveaways can be used by a variety of brands and for a multitude of products. However, specific sectors might experience more success with this strategy than others.

Lifestyle and Fashion Brands: Instagram is a visually-driven platform making it an ideal space for lifestyle and fashion brands. These brands often have products easily showcased and desired by many Instagram users, making them prime candidates for successful loop giveaways.

Beauty and Skincare Brands: Like fashion, beauty, and skincare products are visually appealing and in high demand. These brands often have substantial success with loop giveaways, especially when they can partner with other non-competing brands within the same industry to offer a comprehensive beauty package.

Travel and Hospitality Brands: Offering a free vacation or a luxury hotel stay can attract many participants. While the cost might be higher for these brands, the potential increase in visibility can make it a worthwhile investment.

Tech Brands: The appeal of winning the latest gadget or tech accessory can make tech brands particularly suited to loop giveaways. These prizes often have a high perceived value, attracting many participants.

Small Businesses and Startups: For newer brands with limited reach, a loop giveaway can be a cost-effective way to increase their visibility and follower count quickly. This strategy is particularly effective when they can partner with larger, more established brands.

Conclusion

Instagram Loop Giveaways can be a powerful tool in your social media marketing arsenal, offering rapid follower growth, increased visibility, and high levels of engagement. However, brands should be aware of the potential drawbacks. Instagram Loop Giveaways come with both benefits and drawbacks. They can rapidly increase the follower count and potentially the visibility of a brand, offering a relatively simple and cost-effective way to reach new audiences.

However, these followers are often more interested in the prospect of winning the giveaway rather than engaging with the brand's content on a regular basis. This can result in a decrease in engagement rates after the giveaway ends, which may negatively affect the visibility of a brand's content within the Instagram algorithm. In addition, the influx of disinterested followers can skew analytics data, making it harder to understand and cater to the needs of the brand's genuine audience.

While the prospect of quickly gaining a large number of followers can be tempting, it's crucial to consider the potential long-term impacts on engagement and content visibility. For brands seeking to build a loyal and engaged audience, focusing on organic growth through high-quality, relevant content and authentic interaction may yield more sustainable results.

In conclusion, whether the pros of Instagram Loop Giveaways outweigh the cons largely depends on a brand's specific goals and strategies. If the aim is primarily to increase followers in a short period, a Loop Giveaway might be beneficial. However, if the focus is on long-term engagement and building a genuinely interested community, the cons could outweigh the pros. Therefore, each brand should carefully weigh these factors and consider their specific goals before deciding to proceed with such a giveaway.

A successful loop giveaway requires strategic planning and execution. It's important to partner with the right brands, offer appealing prizes, and ensure your giveaway is effectively promoted and managed. By doing so, loop giveaways can help propel your brand's Instagram presence to new heights. As always, it's essential to consider this strategy as a piece of a larger marketing puzzle and not a quick-fix solution for long-term growth and engagement.