The Future of TikTok

The controversy regarding banning TikTok in the United States continues.

What does this mean for digital marketers, businesses and agency owners? How could a ban affect your business? What decisions can you implement to curb the potential effects of a TikTok ban?

Let’s find out.

Current TikTok ban developments

Congress introduced a new bill titled the RESTRICT Act (Restricting the Emergence of Security Threats that Risk Information and Communications Technology Act), which enables the Biden administration to ban applications it deems a security risk.

The bill’s sponsor, Sen. Mark R. Warner, explained the focus on TikTok and ByteDance. “The threat that everyone is talking about is TikTok, and how it could enable surveillance by the Chinese Communist Party, or facilitate the spread of malign influence campaigns in the U.S.”

Given Sen. Warner’s comments and the introduction of the RESTRICT Act, the possibility of a ban on TikTok should be taken seriously.

TikTok and the U.S. economy

TikTok is used by millions within the United States to build their businesses, attract customers and develop brand loyalty. It is thoroughly embedded in the U.S. Economy, with 150 million Americans users, according to TikTok. The app boasts over 670 million downloads worldwide, with over $490 million in ad revenue in the first quarter of 2023.

Statistica reports that between January and July 2021, TikTok’s parent company ByteDance spent over $34 million on TikTok ads. The same year, ByteDance generated $38.6 billion from ad revenue, making it the third-largest media company worldwide. Statistica estimates TikTok’s 2023 reach in the United States to be a little over 42%.

Potential effects of a TikTok ban on businesses, professionals, and agency owners

If TikTok is banned, how would this affect you? Well, that depends on who you are.

If TikTok is banned, everyone within the U.S. will lose access to the platform, their accounts, and the leads garnered through TikTok. Digital marketers and agency owners would no longer use TikTok ads and TikTok marketing strategies, at least within the U.S.

Businesses that focus heavily on a TikTok marketing strategy may take a dip in leads and customer acquisition if a ban is finalized. Users and professionals alike will have to quickly switch and adapt to new social media platforms to ensure a following and lead generation.

While this may not seem like such a big deal to businesses and marketers, it can be a huge hassle. Audiences become familiar with the platforms they frequent. Learning a new platform and rediscovering their favorite accounts and brands is time-consuming and frustrating. Businesses focusing solely on TikTok should consider immediately cultivating other social media applications.

Roughly 18% of marketers use TikTok in their marketing strategy.  TikTok has an average engagement rate of 5.69%, which beats Twitter, Facebook and Instagram combined! Marketers, professionals, and users in general may also see a marketing message engagement decrease if TikTok is banned.

For marketers and agency owners, a TikTok ban could force an immediate migration to Instagram in the short term. Banning TikTok would have a moderate effect on advertising and marketing targets. 

TikTok alternative

There are multiple social media platforms that are similar to TikTok. Instagram, for instance, is “a clone of Tiktok” and can be used instead of TikTok. However, Instagram does have its setbacks and differences in its discovery and “For You” page.

Lemon8 is a recently launched TikTok alternative. It is already sitting within the top 10 in app stores, and many TikTok users are recommending it as a TikTok alternative. Techcrunch speculates that TikTok may be leveraging its existing platform to market Lemon8 to the public.

This TikTok alternative is similar to Instagram and TikTok, allowing users to post photos and short videos. Users can get “For You” recommendations, discover new accounts, and interact with their followers.

Apptopia indicates that Lemon8 has roughly 16 million downloads worldwide so far, with 4.25 million active users within the United States.

Business owners, agency owners and markets should consider diversifying their marketing efforts and lead generation streams. Keep an eye out for our next article, which will cover diversifying your marketing strategy.

In the meantime, professionals can use TikTok to their advantage and strengthen their customer loyalty and brand recognition. Consider a strategic marketing partner to get the most out of TikTok and TikTok ads. Dream Local Digital can help you quickly launch TikTok ads and implement an effective marketing strategy.