Is the clock ticking for TikTok?
Last week, during a congressional hearing, TikTok CEO Shou Chew was grilled by lawmakers. But unlike Facebook CEO Mark Zuckerberg, his appearance seemed to activate fan support (unless, of course, TikTok used its “heating” tool on itself).
With concerns over how kids use the app, the security of US citizens’ data and how the app’s algorithms could be used to influence what content people see, the US is considering joining nations like India and Taiwan in banning the app.
But agencies don’t seem too worried that a ban will go through. And if it does, well, at least they can shift budget to YouTube Shorts?
While lawmakers singled out TikTok for the hearing, TikTok and its social media peers will be equally affected by new laws designed to protect children from the dangers of social media, such as its addictiveness and how kids can endanger themselves while using it.
Last week, Utah passed a law that gives parents unprecedented oversight over their kids’ social media usage. The law, which goes into effect next March, requires social media platforms to share everything about their teens’ accounts, from DMs to posts to searches. Minors would also need consent from a parent to set up an account and would not be able to use a social media app at night unless their parents modify the settings.
Other states are also considering the idea. California passed a law that goes into effect in 2024 designed to protect teens from dark patterns. And states like Arkansas and Texas are following Utah’s path in creating more guardrails for minors.
Then, we close with a dose of data. Magna forecasted US ad spend for the second half of the year, which it estimates will grow 3.4%. Despite inflation, layoffs, bank runs and an overall doom-and-gloom feeling this winter, spring may be coming. Out-of-home, streaming and retail media are all areas seeing above-the-norm growth, sending a glimmer of hope into the ad ecosystem.
