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Strategic Thinking

CD's Thoughts on TikTok's Potential Ban in the USA.

CD's Thoughts on TikTok's Potential Ban in the USA.

CD's Thoughts on TikTok's Potential Ban in the USA.

Well, it looks like TikTok is making headlines again, but this time it's not for being the hottest social media platform around. Nope, it's because there's talk of a potential ban in the USA. Can you believe it?

According to the latest data, there are a whopping 113.3 million active TikTok users in the USA who are 18 years and above.

That's a huge number! So, it's no wonder that many businesses and brands have been jumping on the TikTok bandwagon as part of their marketing strategy.

Why TikTok is Facing a Potential Ban in the USA

You may have heard the buzz about TikTok potentially being banned in the USA. It's not the first time this has happened - other countries like India, The Netherlands and Germany have already banned the popular social media platform in recent years.

Why the ban? Well, many governments have expressed concerns that TikTok's Chinese parent company, ByteDance, may pose a risk to sensitive user data. There are worries that the app may track users' browsing history and location, as well as potentially contribute to the spread of misinformation.

In March 2023, TikTok's owner ByteDance received an ultimatum from the Biden administration - sell your shares in the app, or face a ban in the USA.

It remains to be seen what will happen with TikTok in the USA, but it's clear that concerns around data privacy and security are at the heart of this debate.

Our Take on the Potential Ban in the USA

TikTok is a major player in the US beauty industry, with over 61 million likes for beauty-related videos analyzed in January 2023. But if TikTok were to be banned in the US, it would open up opportunities for other similar social media platforms that have emerged in recent months.

India's experience with the TikTok ban shows that users and creators will adapt to alternatives, with Instagram and YouTube emerging as the biggest winners. If TikTok were to be banned in the US, digital ad companies like Meta, Snap, and Google would stand to benefit. While it's uncertain whether these platforms will grow as quickly as TikTok, creators and businesses will still have alternatives to explore.

For example, YouTube Shorts now has 1.5 billion monthly logged-in users, while Reels makes up over 20% of the time users spend on Instagram. In short, a TikTok ban in the USA would certainly be disruptive, but it wouldn't be the end of the world for creators and businesses. It would simply open up new opportunities and give rise to new competitors.

"TikTok has become a trusted tool for brands, especially in CPG, to boost new product launches and sales. At times of uncertainty, for example, during the Pandemic, brands that were able to jump on TikTok campaigns to achieve market penetration saw great revenue gains, especially in the US.  

There is currently too much skin in the game, in particular across industries with great political pull such as beauty, food & drink, to not put pressure on the government to keep TikTok available.

Businesses are finding less and fewer bankable avenues to invest in with Instagram becoming less dependable on achieving results. TikTok is one of the few channels left at a marketing team's disposal to reach consumers for both small and big businesses alike." - Jamila Ali

But If TikTok Gets Banned….What Happens to My Content and Followers?

  • Don't lose your TikTok videos: You can save them by downloading them without the watermark. That way, you can use them on other social media platforms without getting flagged. Some platforms you might consider using include Facebook Reels, YouTube Shorts, Pinterest, and Instagram.
  • Don't rely solely on third-party platforms: It's important for creators to have their own platforms, known as "owned media." This could include things like email newsletters, blog posts on your own website, and gated content. Start thinking about how you can get your TikTok fans to follow you on these platforms.
  • Don't put all your eggs in one basket: Make sure you're building a strong presence on other social media platforms, too. That means having a solid content strategy and engaging with your audience. Remember, your fans are following you, not just your content, so it's important to connect with them across multiple platforms.

So, Is It Still Worth Investing in TikTok?

Check out our recent CD Masterclass where we talked all things TikTok! You can download or rewatch the recording of the webinar by clicking here (but just remember that you'll need to sign up or sign in to CD World for free to access it).

In the meantime, our advice is to stay calm and be prepared for whatever happens. Only time will tell whether TikTok will face the same fate as it has in other countries that have implemented a TikTok ban.

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