Exchange: Instagram Branding

As years and years have passed, social media has developed and introduced new and insightful ways people can interact with their friends, their fans, and their idols. Social networks such as Instagram have introduced variations of “business and marketing”, one can add to their online profile. 

People with large followings such as celebrities or “influencers” may be paid by companies to promote a product or website through Instagram. Depending on the number of followers the influencer/celebrity might have, the higher they will charge.

This relates to the concept of ‘exchange’. Exchange “in its simplest form refers to the act of giving and receiving” (Kuttanien, 2019). Regarding Instagram, companies will reach out and ask for a chance to be featured as well as offer a payment. Once a negotiation is met the influencer then creates a post, possibly including the product in the photo. Whether the product within the post is liked by the influencer is relative. They don’t care, as long as they are getting paid.

In a BBC interview with Kat Richardson, the creative director of influencer marketing agency WaR, she explains how money is earnt through Instagram. Typically, users may need approximately 30,000 followers and with a fashion/beauty related post, you could earn around $750. She detailed that a continuous relationship between the brand and the influencer tends to be more beneficial, rather than a singular post. 

 

Kim Kardashian promoting on her official Instagram account.

In the 2003 book, Key contemporary concepts by John Lechte, he identifies how the concept of money transfer and exchange has become much more abstract. He explains how money has transformed from what was once a physical substance. With the introduction of electronic money, exchange itself is also becoming abstract. Exchange for value price is now the dominant form of exchange. Karl Polanyi defined three different modes of exchange: reciprocal, redistributive, and market exchange. Polanyi believed that these types of exchange can be identified in societies across the world. However, the two modes which are commonly discussed are reciprocal and market exchange.

Regarding Instagram, reciprocal exchange is present through the outcome of a brand deal between a company and an influencer. The influencer earns money and possibly more followers whilst the company being promoted receives publicity and possible sales. Market exchange is present through how the brand sells their product. If you find a post from an influenced interesting and decide to explore the product or brand, the site will provide you with pricing, often immediately to ensure the sale. 

Influencers often promote products online whether it’s their own or a sponsored brand, considering all they have to do is post a selfie holding something and instantly earn “easy money”. With everything taken into consideration, it’s a win-win for both parties, even if they might be exploiting their audience.

References

Exchange. (2003). In J. Lechte, Key contemporary concepts. London, UK: Sage UK. Retrieved from https://elibrary.jcu.edu.au/login?url=https://search.credoreference.com/content/entry/sageukcc/exchange/0?institutionId=429  

How much do Instagram influencers earn?. (2019). Retrieved from https://www.bbc.com/news/uk-45735861 

Kuttainen, V. (2019). BA1002: Our Spaces: Networks, Narrative and the Making of the Place; Week 6 Lecture Powerpoint. Retrieved from https://learn.jcu.edu.au