- TikTok’s uncertain future could reshape brands’ digital footprints, consumer engagement strategies, and the martech landscape
- of Potential ban risks $24.2 billion in US GDP, requiring rapid adaptation of marketing approaches
- Explore why it’s essential for marketing leaders to plan for contingencies with flexible content strategies and practices that align with evolving regulations.
what happens with vegas China remains vegas China, right?
Yes, we are changing this representation because we know who it best suits (and it’s not Hollywood). Chinese-made TikTok is under threat of ban from the US House of Representatives, citing data privacy concerns and ties to the Communist Party.
The short-form video app could lose 170 million users if parent company ByteDance (also known as App Factory) doesn’t sell TikTok to a US company within six months.
TikTok creators, who are expected to lose $8.66 billion in revenue, have called the possible ban the “death of the American dream,” to which Kamala Harris responded, “They’re going to ban TikTok.” “We will deal with the ownership of the property.”
First, the death of the cookie and the “will they not” drama of the TikTok ban have advertisers concerned about the implications for MarTech, advertising, and technology law in general.
Let’s find out, he says.
FYP: TikTok’s connection to China
60% of TikTok is owned by US companies, but it is the 1% stake (golden stock) owned by the Chinese government that poses a problem, and ByteDance is using the law to help the Communist Party collect information. are restrained.
Current CEO Shou Zi Chew responded to a question about TikTok’s status as a Chinese corporation during a 2023 Congressional hearing by saying it was founded in China and is “global” in nature. I said it and dodged it.
Here’s a timeline of TikTok, ByteDance, and China’s policies:
Additionally, governments in Canada, Europe, France, and New Zealand have restricted the use of TikTok on government-owned devices, citing data privacy concerns.
Socio-economic impact of TikTok
As consumers and marketers, we have seen TikTok become a fabric of society and fuel an attention economy.
Social media apps have changed the face of product discovery, redefined consumer-brand friendships, fundamentally changed content creation, and cemented the prominence of social search.
People use the platform to learn, make purchasing decisions through product reviews, and seek entertainment and happiness. I can’t think of any other social media platform where users rave about #NewFinds, #TikTokTaughtMe, and #TikTokMadeMeBuyIt.
According to a report by Oxford Economics, TikTok contributed $24.2 billion to the US GDP in 2023. While the financial, medical, and regulated industries have not been keen on joining the platform, TikTok’s fortunes are set for e-commerce, retail, gaming, food and beverage, business services, automotive, and FMCG brands.
Why marketers and software buyers love TikTok
TikTok is not only built on data and proprietary algorithms, but also powered by the creativity of our community. (Pinterest, are you listening?)
It helps brands overcome single-sale barriers, provides full-funnel marketing capabilities, and fills the trust gap in an age of authenticity.
Big brands like Chipotle, Lululemon, Target, and Ulta Beauty are actively investing in TikTok, but the platform is home to 7 million businesses and is critical to the survival of about 40% of small businesses. A closer look reveals that his 32.6% of viewers are millennials with purchasing power and his Gen Z (ages 25-34).
TikTok’s magic number
- The average daily viewing time on TikTok is 95 minutes (33 minutes longer than the daily average on Instagram)
- 61% of TikTok users immediately make a purchase in person or online on TikTok after seeing an ad on TikTok
- 58% of TikTok users discover new brands and products on the platform (14% more than any other platform)
- TikTok ads increase brand trust by 41% and loyalty by 31%
- 90% of TikTok users report that the platform makes them happy
- 33% found value in TikTok ads due to improved brand, personality, and product fit
- Brands that advertised on TikTok for three to four years saw a 41% increase in consumer trust, proving long-term benefits
TikTok advertising has proven to be a tangible way to increase sales not only for businesses but also for small and medium-sized businesses. In an era of banner blinds, ad blockers, and compliance, TikTok provides an ecosystem of people who are open to buying and discovering new products.
To put TikTok’s marketing performance and attribution into perspective, I checked what software buyers are saying about TikTok ads.
G2 take
TikTok Ads has a 4.1/5 rating in our G2 review, showing that users find great value in seamless ad management, simplified retargeting, and lookalike audiences. Advertisers also have access to a variety of easy-to-set-up video ad formats that allow for creative testing.
TikTok Ads have helped businesses increase brand awareness, take advantage of peak seasons, expand marketing channels, reach new audiences, and build high-quality user-generated content (UGC).
It was interesting to see how IT services and consumer goods businesses are finding success with short video platforms.
Users prefer TikTok over Meta because it offers affordable ad inventory and more precise targeting.
These reviews are evidence of the fact that marketers have a lot to lose if a TikTok ban happens, and we’ve only scratched the surface.
What happens if we lose our magic?
Businesses and the marketing community at large see TikTok’s untimely death as a significant loss of youth acquisition. They have invested millions of dollars into TikTok’s marketing strategy and intend to remain committed to the platform until a permanent decision is made.
“Companies across the country have already invested heavily in TikTok, and removing access would mean a huge waste of time and money. It’s interesting to take an approach that might alienate young people.”
matt rogers
Campaign management manager Add people
Marketing forecasts are biased, leaving brands and agencies with uncertainty around budgets, spend, audience engagement, and advertising. Smaller social media agencies and TikTok-only entities may experience a drop in cash flow and will struggle to survive unless they pivot to providing omnichannel marketing services.
There’s a lot to unravel regarding the fate of TikTok. Audiences will move, jobs will be lost and new technologies will emerge. Conversely, experts predict that Meta, Snapchat, and YouTube will be the winners in this situation. Meta has a lot to gain especially since most Gen Z and Millennials are actively consuming Instagram Reels. It’s also possible that new social media platforms will emerge that feed the same “quick fame” aspirations.
Our experts predict:
“I expect advertisers will have to work harder to reach and engage Gen Z and younger Millennial audiences on other platforms such as LinkedIn. Younger Audiences will disrupt engagement and impression metrics. But that’s not necessarily a bad thing!”
Natalie Hill
Senior Social Media & Communications Specialist; G2
A ban on TikTok could have a negative impact on professionals and worsen the outlook for the global job market.
“The threat of a TikTok ban could lead to career instability in the marketing world. For those who have spent the past few years specializing in TikTok advertising, news of a ban could mean losing their jobs. Especially if there is nothing to replace TikTok advertising, these marketers will need to rely on transferable skills to secure their next role. The loss of TikTok has a significant impact on previous predictions. I’ll give it to you.”
matt rogers
Campaign management manager Add people
How to protect your marketing investments from failure
Diversification remains king of the castle. Advertisers and marketers need to invest in Instagram, Meta, and Marketplace to neutralize TikTok’s deficit.
A quick comparison of the platforms shows that Instagram currently leads the pack, making it the first choice for attention and ad spend to shift.
sauce: G2
In video marketing, doing more with less is an important way to diversify. Flexible content strategies and video optimization practices help marketers minimize waste and maximize performance. This helps you tailor engagement for similar cohorts on Reels, LinkedIn videos, and YouTube Shorts.
Attention spans are fickle, and brands can’t simply disappear with the demise of one social platform. With more and more advertisers spending a few dollars for the same attention and retention, asset optimization becomes extremely important.
Marketers need to find a way to export valuable ad targeting data that they can safely own on cloud storage systems. This data should be integrated into marketing attribution and analytics software to feed predictive models and audience groups to expand customer interaction touchpoints.
This not only improves operational efficiency but also serves as a single source of truth for diverse data sources and marketing platforms.
But don’t just take it away from me.
“Maximize content diversification and efficiency! The content brands create for TikTok can now easily be used on other social channels, so some TikTok-like content will likely end up on Instagram or Snapchat for the time being. It is expected that this will be transferred.”
Natalie Hill
Senior Social Media & Communications Specialist; G2
Don’t fall into the trap of “doubling down on the best performing platform” as your CPC (cost per click) can be high.
“Diversify. Putting more effort into other successful channels you’re already working on could be an effective way to steady the ship until an alternative to TikTok emerges in the future.” ”
matt rogers
Campaign management manager Add people
Is TikTok banned or is it a TikTok joke?
The US first applauded India’s ban on TikTok in 2020, citing data privacy and geopolitical concerns, but is the land of the free following suit? Is this a real data protection concern or a conspiracy to corner foreign companies that benefit American platforms? When TikTok was banned in India, Reels and YouTube shorts emerged as winners, but history could repeat itself.
“Looking for a silver lining to the prospect of a national ban, agencies, content creators, and software companies have an opportunity to innovate here.”
matt rogers
Campaign management manager Add people
While skeptics speculate and governments regulate, the common theme between Google’s cookie demise and TikTok’s possible ban is a shift to privacy-first technology platforms.
Because where consumers go, brands follow and technology innovates.
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