In recent years, TikTok has revolutionized the social media landscape, capturing the attention of billions worldwide with its short-form video format and vibrant community. For brands, TikTok has become an integral part of marketing strategies, offering unprecedented opportunities for engagement, creativity, and audience reach. However, with the looming threat of a potential ban on TikTok in certain regions, brands may be left wondering about the implications for their marketing plans [4]. TikTok has also been urging members of their community to put a stop to this ban [3].
Loss of Audience Reach and Engagement
TikTok boasts over a billion users worldwide, spanning diverse demographics. For brands, this represents a massive potential audience to engage with. TikTok’s unique format, characterized by short-form videos and immersive content, has proven highly effective in capturing users’ attention and fostering engagement. Brands have capitalized on this by creating compelling content that resonates with TikTok users, resulting in increased brand awareness, loyalty, and potential conversions. At least once a month, 37.36% of US mobile internet users visit TikTok. This indicates that over half of all mobile internet users in the US are actively using TikTok. Over 50 million people use TikTok every day. Of all Americans with a mobile device and internet, 18.68% log on to TikTok daily [10]. Losing access to TikTok’s vast audience would significantly limit brands’ ability to reach and engage with their target demographics in a meaningful way
Innovation and Creativity at Stake
TikTok has emerged as a hub of creativity and innovation in content creation and marketing strategies. Its algorithm driven “For You” page constantly surfaces fresh and trending content, encouraging users and brands alike to experiment with new ideas and formats [6]. Brands have leveraged TikTok’s creative tools, trends, and challenges to develop innovative campaigns that capture users’ imagination and drive engagement TikTok even utilizes a “TikTok” University that is free and provides free courses on enhancing engagement within your account [8]. A ban on TikTok would not only stifle this creativity but also deprive brands of a platform where they can continuously innovate and differentiate themselves from competitors.
Disruption to Influencer Partnerships
Influencer marketing has become a cornerstone of many brands’ strategies on TikTok. The platform has nurtured a thriving community of content creators and influencers who wield considerable influence over their followers. Brands have collaborated with TikTok influencers to amplify their message, tap into niche audiences, and foster authentic connections with consumers [1]. According to Harvard Business Review, with expenses ranging from $200 to over $100,000 per post, 2,412 influencers wrote the posts in their dataset for 861 brands spanning 29 product categories. In fact, we discovered that an average 1% increase in influencer marketing budget resulted in a 0.46% increase in engagement, indicating that the approach might, in fact, produce a positive return on investment. They also discovered that most businesses miss out on a lot of opportunities: on average, the dataset’s firms could have increased engagement by 16.6% just by allocating their influencer marketing resources more effectively [8]. However, a ban on TikTok would disrupt these influencer partnerships, forcing brands to reassess their approach to influencer marketing and potentially seek out alternative platforms or strategies to maintain their reach and influence.
Data and Analytics Dilemma
TikTok offers robust data and analytics tools that enable brands to track the performance of their campaigns, monitor audience engagement, and glean valuable insights into user behavior. This data-driven approach allows brands to refine their strategies, optimize content, and make informed decisions about future marketing initiatives [7] [9]. However, if TikTok were to be banned, brands would lose access to these valuable analytics, making it more challenging to measure the effectiveness of their marketing efforts and adapt their strategies accordingly. This could result in a lack of transparency and hinder brands’ ability to achieve their marketing objectives with precision.
Maintaining Brand Visibility and Awareness
TikTok has emerged as a powerful platform for building brand visibility and awareness, particularly among younger demographics. Brands have used TikTok as a stage to showcase their personality, values, and products/services in a way that resonates with users on a personal level. By participating in viral challenges, creating engaging content, and collaborating with influencers, brands have been able to stay top-of-mind and connect with consumers in meaningful ways [5]. However, with the potential ban of TikTok, brands risk losing a valuable channel for brand promotion, which could lead to a decline in visibility and awareness, especially among the coveted Gen Z audience with 32.5% of their users being 10-19 and 29.5% being 20-29 who spend on average 95 minutes per day on the app [2].
In summary, a ban on TikTok could have far-reaching consequences for brands’ marketing plans, impacting their ability to reach and engage with audiences, innovate creatively, leverage influencer partnerships, access valuable data and analytics, and maintain brand visibility and awareness. As such, brands must remain vigilant, adaptable, and prepared to explore alternative strategies and platforms to mitigate the potential impact of a TikTok ban on their marketing efforts.
questions that a marketing manager might consider:
- How do you think digital marketing will change if the ban of TikTok is accepted?
- How do you think brands will adjust their campaigns without paid advertising through this app?
References
[1} Developing your content strategy. TikTok Creator Portal. (2021, June 1). https://www.tiktok.com/creators/creator-portal/en-us/tiktok-content-strategy/developing-your-content-strategy/
[2] Doyle, B. (2024, January 5). Tiktok statistics – everything you need to know [Jan 2024 update]. Wallaroo Media. https://wallaroomedia.com/blog/social-media/tiktok-statistics/#:~:text=The%20percentage%20of%20U.S.%2Dbased,All%20data%20via%20Comscore.&text=Average%20Minutes%20Per%20User%20%E2%80%93%20TikTok%20users%20love%20the%20app.
[3] Hutchinson, A. (2024, March 8). Sociable: TikTok calls on US users to oppose latest proposal to Ban App. Marketing Dive. https://www.marketingdive.com/news/tiktok-calls-on-us-users-to-oppose-ban-app-proposal/709725/
[4] Johnston, W. (2024, March 13). Content creators blast a potential tiktok ban. NPR. https://www.npr.org/2024/03/13/1238207543/tiktok-ban-house-vote-creators-reaction
[5] Leung, F. F., Zhang, J. Z., Gu, F. F., Lu, Y., & Palmatier, R. W. (2022, November 24). Does Influencer marketing really pay off?. Harvard Business Review. https://hbr.org/2022/11/does-influencer-marketing-really-pay-off
[6] Sheikh, M. (2024, March 13). How the TikTok algorithm works in 2024. Sprout Social. https://sproutsocial.com/insights/tiktok-algorithm/#:~:text=The%20TikTok%20algorithm%20is%20a,highly%20personalized%20for%20each%20user.
[7] TikTok for Business: Marketing & Advertising on TikTok. Get your business discovered on TikTok. (n.d.). https://getstarted.tiktok.com/ttvalue?attr_source=google&attr_medium=search-br-ad&attr_adgroup_id=131664212817&attr_term=tiktok+analytics&gad_source=1&gclid=Cj0KCQjwncWvBhD_ARIsAEb2HW9-rO3YNLrpIX7S_iHVmuyWU7ac6dzyRhEPfE_EJTTyBFZDiZG9wckaAg7kEALw_wcB
[8] Tiktok University. TikTok Creator Portal. (2023, August 18). https://www.tiktok.com/creators/creator-portal/en-us/getting-started-on-tiktok/tiktok-university/
[9] Understanding your analytics. TikTok Creator Portal. (2022, March 17). https://www.tiktok.com/creators/creator-portal/en-us/tiktok-content-strategy/understanding-your-analytics/
[10] Woodward, M. (2024, March 7). Tiktok user statistics 2024: Everything you need to know. SearchLogistics. https://www.searchlogistics.com/learn/statistics/tiktok-user-statistics/#:~:text=37.36%25%20of%20US%20mobile%20internet,to%20TikTok%20every%20single%20day.
Image Sources:
[1] https://www.cato.org/blog/could-latest-tiktok-ban-pass-constitutional-muster
[3] https://www.socialchamp.io/blog/tiktok-engagement/
[4] https://tiktokcreatoruniversity.com/
[6] https://buffer.com/resources/tiktok-analytics/
[7] https://www.yellowhead.com/blog/best-tiktok-ad-examples/
Marketing Management 