What a US Ban on TikTok Could Mean for Brands

by Samuel Pordengerg Mar 24, 2023 News
What a US Ban on TikTok Could Mean for Brands

The House Committee on Energy and Commerce heard testimony from the CEO of TikTok. There were tense exchanges on TikTok's connection to China and the measures taken to safeguard the 150 million Americans who use the app.

There were many questions about protecting Americans' data privacy, ensuring children's online safety and TikTok's association with the Chinese Communist Party. The hearing was chaired by the committee chair.

If TikTok is banned in the U.S., the consequences will go beyond the app's disappearance. It would have a huge impact on brands and retailers who depend on the platform to make money.

A Brief History of TikTok

Byte Dance launched TikTok in September of 2016 The original name of the app was "Dooyin".

ByteDance saw an opportunity to expand the app's reach around the world after it gained popularity in China. The international version of the app was made available for download in app stores outside of China. TikTok became the most downloaded app in the U.S. and other countries by the end of last year.

TikTok has become a cultural phenomenon with 150 million monthly active users in the U.S. Retailers and brands use it to reach younger audiences and promote their products. If TikTok is banned in the U.S., it will be a big blow to brands and retailers that rely on the app to reach consumers.

Brands and Influencers

Not only would brands and retailers lose their established presence on the platform, as many companies have invested time and resources in creating TikTok content to reach a younger audience and drive engagement, they would lose a connection that TikTok has built a following on Content that thrives on TikTok tends to lack production and has a way of making viewers feel like they are in the same room as they watch.

Many brands today partner with popular creators to promote their products if TikTok is banned.

More than 70% of brands and retailers plan to increase their influencer marketing spend in the next five years, while 23% plan to spend more than 40% of their marketing budget on influencer marketing.

It is just another form of influence for brands.

A Revenue Driver

Many businesses have been able to gain exposure and trust with the help of TikTok. More than 50% of small businesses using TikTok have experienced a substantial improvement in their marketing performance, and more than 80% have reported a positive return on investment from their TikTok ads. Over 50% of these brands saw a positive return on their advertising investment within six months.

If the app were banned, many TikTok users would go back to other platforms. TikToker said he wouldn't go back to Facebook. Meta is no longer alive. They are insane if they think I will leave if TikTok is banned.

Who Will Take Over?

Who will take over if TikTok ends in the U.S. Is it going to be social media sites? Is there another app that we don't pay much attention to?

Similar features to TikTok, such as short-form video content and filters, can be found on popular platforms likeSnapchat andInstagram. Since it has a large user base, it could be considered a contender.

New and emerging social media apps can potentially take advantage of the TikTok ban and gain more attention from brands and consumers. Triller, Byte, and Dubsmash have become popular as alternatives to TikTok. It is not certain if these apps can gain the same level of popularity as TikTok.

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