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On Wednesday, President Biden signed the latest foreign aid bill into law, which included a provision forcing TikTok to find a new owner within nine months or be banned from the United States entirely.
The deadline for a sale is January 2025, however, Biden could extend it for another 90 days if he determines there’s progress toward a sale, giving TikTok up to a year before facing a ban. What would this look like? The app would be prohibited from U.S. app stores and from internet hosting services that support it, which would effectively restrict TikTok from all current users as well as any new downloads of the app.
Impacts of the ban in other countries
TikTok is currently banned in multiple countries, driven by concerns ranging from misleading youth to spreading dissent and misinformation. In Afghanistan, the Taliban banned TikTok along with PlayersUnknown Battleground (PUBG), while in Uzbekistan, restrictions were imposed with proposals for a complete ban. Senegal and Somalia blocked TikTok due to its role in political dissent and the spread of harmful content, respectively. Kyrgyzstan and Nepal cited concerns about its impact on children and societal harmony before banning the app. Additionally, Iran and several other countries restricted the usage of TikTok, highlighting global concerns over the platform's influence.
In June 2020, India's TikTok ban sent shockwaves through its creator community and businesses that relied on the platform, prompting the rapid emergence of alternative short video platforms. Instagram's Reels, Meta's Reels, and YouTube's Shorts all rushed to fill the gap left by TikTok's absence. Creators faced challenges adapting to multiple platforms with different algorithms and audience dynamics. ByteDance, TikTok's parent company, also had to adjust its operations after the ban.
Beyond the creator community, concerns about free speech and legal battles emerged, echoing debates in the U.S. following India's ban. FCC Commissioner Brendan Carr highlighted India's ban as a crucial precedent, suggesting similar actions may be necessary in the U.S. to address concerning apps.
What does this mean for marketers?
Diversify marketing channels
If a ban seems inevitable later in 2024, brands with a strong presence on TikTok should be ready to invest in Instagram, YouTube, and/or Snapchat and let their audiences know what other platforms they are posting short-form videos to. Exploring alternative platforms and their different content formats can help mitigate the risk of losing audiences. By repurposing TikTok content to Instagram Reels and YouTube Shorts, marketers may be able to navigate potential disruptions while sustaining digital content momentum.
Reconsider influencer partnerships
Marketers may need to rethink their influencer strategy as the value and reach of influencers primarily on TikTok may plunge. For example, if influencer talent is contracted for a year term, consider shifting content to Reels and adjusting their fee.
Expect changes in e-commerce and product discovery
Many consumers, particularly younger ones, are turning to social media platforms for shopping. PYMNTS Intelligence reports that 68% of Gen Z consumers use social media to search for products. TikTok has provided a quick way to get a live review of a product and the ability to buy it immediately all in the same place. With a potential ban, users could shift back to purchasing from a platform like Instagram.
Be prepared for a cultural shift
Since its inception, TikTok has had social, political, and cultural impacts on society. The app is sparking music and fashion trends, propelling a new generation of creators and influencers, and becoming a news source for users. These audiences and influencers won’t disappear with the banning of TikTok, but they’ll likely shift to an alternative platform. Brands and marketers should be prepared to tap other platforms to reach the Gen Z audience and stay on top of trends and cultural movements.
What’s next?
Immediate removal of the app from U.S. users’ phones is not likely. However, the primary concern is that mandating ByteDance to divest ownership to a U.S. entity could alter the core driver of TikTok's success: its algorithm. This could pose a substantial challenge for the company in the event of a forced sale. Devoid of the “secret sauce” that has propelled the app to 170 million U.S. users, TikTok's viability could be severely compromised. Such a scenario could significantly diminish the app's effectiveness for marketing, networking, content discovery, and influencer collaborations.
At Praytell, we're keeping a vigilant eye on developments regarding the TikTok ban and are committed to keeping you informed every step of the way. Don't hesitate to reach out to hello@praytellagency.com with any questions you may have—we're here to help!
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