What Effect Will the TikTok Ban Have on Advertising?

Author:

Nathan Buchanan

Category:

Social Media

News

Date Published:

Friday, June 14, 2024

TikTok's short-form video content captivated millions worldwide in 2017, propelling the app to prominence. Its addictive nature, varied spectrum of authentic producers, and new features have catapulted it to the top of social media, particularly among the younger demographic. While TikTok may be a very popular social media platform, there will still be ways to reach former TikTok users via other social platforms. As many already know, TikTok is being banned in the US due to concerns that the Chinese government may obtain sensitive user data via the short-form video app. While the law has been passed, it has yet to be enforced as TikTok is currently in the process of suing the government, citing that the law is unconstitutional. A TikTok ban could result in new social media winners down the road. If TikTok goes, where would consumers spend their time?

Where Would They Go?‍

With a possible TikTok ban across America, social media users will immediately hunt for a new successor, but nothing so far has been able to replicate the viral video site.

If the platform is restricted, the time spent may shift to other kinds of digital media, such as connected TV (CTV), Over-The-Top (OTT), Instagram Reels, and YouTube Shorts, among other digital media platforms.

Where would Consumers spend their time if TikTok left the US?

Exploring TikTok Alternatives

‍Google/YouTube

According to eMarketer, the group is more likely to use YouTube. According to our May 2024 projection, 71.2% of US Gen Zers use TikTok. 73.3% of US YouTube users watch Shorts, the platform's TikTok-like product. Marketers looking to reach Generation Z should establish a presence on YouTube organically or through creative partnerships and publish short- and long-form content.

Facebook/Instagram - Meta

If TikTok were banned, Instagram could also experience a massive rise. According to an MGH study published in March 2024, 58% of US TikTok users would move to Instagram Reels, similar to TikTok with their vertical video layout, which is designed to boost engagement and promote products/services.

CTV/OTT/Streaming Services

According to eMarketers’ projection, 36.6% of US internet users use TikTok, whereas 76.2% watch CTV. US subscription OTT viewers already spend an average of 2 hours and 37 minutes daily on the platforms. Most of the younger generation are more inclined to use streaming services. While TikTok audiences are anticipated to relocate to other vertical video platforms, some may shift to longer-form content, such as CTV, where marketers may reach them.

With popular streaming services like Netflix, Hulu, Spotify, and Paramount+, advertisers can deliver ads to these audiences and collect data on their behavior. This data can help advertisers create more targeted and personalized ad campaigns. CTV and OTT platforms offer various audience targeting options, including demographics, geographic area, genre, and content curation. Some streaming services, such as Netflix, use real-time data analytics, creative advertising, and the latest technology in their marketing approach.

That said, this also presents a significant potential for US Internet companies, including startups, to fill the hole TikTok could leave. Marketers must anticipate and plan for changes in the way younger and older viewers interact with information. The TikTok ban could impact digital consumption habits, forcing a shift to alternate platforms where these groups are likely to go.

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‍Advertising on Social Media:

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We continuously monitor campaign performance indicators such as impressions, clicks, conversions, and return on ad spend (ROAS). Our team utilizes machine learning algorithms and predictive analytics to identify trends, optimize bidding methods, and allocate budget effectively for maximum results.

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The Moran Group offers a comprehensive suite of services tailored to each client's unique needs, driving measurable results and delivering exceptional ROI across all digital marketing platforms. Continuously demonstrating our value and impact, we share the identities of countless brands, fostering brand recognition, trust, and loyalty among target audiences and clients. We consistently produce high-quality leads using a combination of traditional and digital marketing channels, resulting in increased conversions and revenue. While TikTok may be leaving the United States, our commitment to our clients remains unwavering.

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