The Future of TikTok in the US: What Marketers Need to Know

Just a few months after TikTok CEO Chew Shou Zi went viral for his polite but firm response to US Senators who grilled him about his ties with China, recent legislative actions in the United States have raised concerns about the platform’s future.

It goes without saying that TikTok is a big deal in most companies’ media mix, and it’s no wonder why. Its impact on brand sales is huge, especially in Southeast Asia (SEA). According to Nielsen, with its immersive formats and engaging content, TikTok has captured a significant audience in SEA, which has led to some pretty impressive growth. The study shows that TikTok’s paid media is really effective at getting a good return on advertising spend (ROAS). In fact, it’s 1.6 times better than other media! And when you add in the extra impressions from paid campaigns, the ROAS goes up by 100%.

So, as a marketer, it’s crucial to stay informed about its potential ban and implications for your marketing strategies.

But first…

Why does TikTok face a potential Ban?

In a nutshell, the US House voted to ban TikTok because of its ties with China. In fact, the platform’s owner, Bytedance, is a Chinese internet company. However, this only applies if the company doesn’t sell their stakes within a year.

Why are US legislators concerned? In 2021, a former TikTok recruiter told CNBC that its Chinese parent company has access to American users’ data and is actively involved in the company’s product development and decision-making process.

Data privacy, which refers to one’s ability to choose for themselves when, how, and to what extent their data is shared with or communicated to others, is a crucial topic of discussion in the digital era. Indeed many countries already banned the platform (among them, ironically, there’s China) and others prohibited their lawmakers from downloading the app on their phones, such as New Zealand, France, Canada, Belgium, and the United Kingdom.

With that being said, according to Norton, TikTok is as safe as any other social media platform you can download on your phone. Whether that’s reassuring or not, that’s for you to decide, my friend.

But, regardless of the platform’s safety (which is not within my competence to discuss) let’s say it does get banned in the United States…

How will TikTok’s potential ban impact marketing strategies targeting Gen Z?

TikTok’s potential ban might be a problem for your company if your primary target is Gen Z, given that they even use it as a Search Engine (40% of them use it instead of Google). Additionally, according to Statista, the US is the country with the largest TikTok audience as of January 2024.

So, now that we’ve established that its potential ban could really suck…what can you do?

• Diversify like there’s No Tomorrow (but within your budget): One strategic approach to prepare to the platform’s potential ban is to diversify your social media presence by exploring alternative platforms that can serve as substitutes. For example, Instagram and Snapchat offer similar features and audience demographics, making them ideal alternatives.
• Be Proactive: Keep a close eye on the latest developments surrounding TikTok’s status, including legislative actions and regulatory updates. Staying informed will enable you to swiftly adjust your marketing strategies and allocate resources to other platforms if necessary. Remember adaptability is key.
• Strengthen your Website presence: The truth is, it may be TikTok’s doomsday today, but it could be another social media’s tomorrow. You are a host on these platforms, so you have limited control. Your website, on the other hand, is yours, and it will not disappear tomorrow for reasons beyond your control.
• Reassure your Audience: Lastly, engage with your audience directly to maintain transparency and reassure them about your brand’s continuity. Communicate any changes in your social media strategy or platform preferences openly and address any concerns or questions they may have.

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