TikTok is in hot water once again, embroiled in controversy over concerns that ByteDance, its China-based parent company, is gathering sensitive data from 150 million US users.
At last week’s US congressional hearing, legislators appeared unconvinced that TikTok is operating independently of the Chinese government, or that it’s doing enough to protect user data and prevent misinformation.
The US has already banned TikTok from government devices, and 10 other governments have done the same: Canada, Denmark, France, Belgium, the UK, New Zealand, Norway, the Netherlands, Poland and both the EU’s executive branch and European Parliament.
Given TikTok’s wild popularity in the US, a broad ban would face steep opposition from the public.
But the US wouldn’t be the first country to ban TikTok on consumer devices. India imposed a countrywide ban on TikTok and dozens of other Chinese apps in 2020 due to similar concerns about privacy and safety (as well as due to military border skirmishes between India and China).
When the hammer fell, TikTok had close to 200 million users in India, the largest non-US TikTok market. After the ban took effect, brands redirected their advertising spending to Instagram, YouTube, Snapchat and various India-based social apps.
US advertisers are projected to spend more than $11 billion on TikTok by 2024, according to eMarketer. As TikTok’s fate hangs in the balance, brands are in a tough spot as they assess the app’s appeal and their ROI against its uncertain future.
We asked agency experts: With TikTok under the microscope and a potential US ban looming, what are you advising brands do?
- Christine Schrader, head of content, Wpromote
- Danielle Wiley, founder and CEO, Sway Group
- Aaron Shapiro, chairman and founder, Product
- Steve Wendling, vice president of media, MMI
Christine Schrader, head of content, Wpromote
We’re telling our clients to stay the course strategically and maintain their investment in TikTok.
A ban is an extremely unpopular move with the public, which means there are a lot of political headwinds – and potential legal challenges – that make it unlikely a full ban will go into effect. But that doesn’t mean we shouldn’t prepare for the worst-case scenario. No single platform is a one-to-one match for everything TikTok does, but Instagram Reels and YouTube Shorts have the most potential for short-form video, while Snap has significant overlap with TikTok users.
Danielle Wiley, founder and CEO, Sway Group
The first piece of advice we are giving brands is to not freak out.
There was amazing content on social media before TikTok, and in the event of a ban, there will be amazing content on social media after TikTok. That said, we don’t believe a ban will be implemented any time soon, if at all.
In the meantime, just in case, we are advising brands to have contingency plans in place. In the case of influencers, one great option is to ensure that all contracts with TikTok include a contingency clause that they can post on Instagram should TikTok go away.
Aaron Shapiro, chairman and founder, Product
We are advising a wait-and-see approach for brands. Despite congressional testimonies, TikTok remains an extremely popular app that is loved and heavily used. As long as consumers continue using it and there is not a negative association with TikTok, brands will continue to use the platform.
But this sentiment can change quickly and, if that happens, brands should be prepared to pause spend and direct their social efforts elsewhere. The problem is that there’s no ready substitute for TikTok.
Steve Wendling, vice president of media, MMI
If a ban is enacted, we would anticipate that a transition period would be announced, similar to what we saw after former President Donald Trump’s administration announced plans for a ban.
This may be a short window, however, so brands are advised to begin discussing plans now for a transition to other social platforms or their owned channels. Consider shifting ad dollars to Snapchat, YouTube Shorts or Instagram.
If brands are using creators, they need to work with them to establish or grow their presence on other platforms. It’s time to be proactive, not reactive.
Answers have been lightly edited and condensed.
