What Brands Should Do about TikTok’s Uncertain Future

Editor’s note: since we published the following post on March 26, the U.S. Congress has fast tracked legislation compelling ByteDance to sell TikTok within 12 months or be subjected to a ban in the United States. This legislation is now law. The road to a potential ban of TikTok is going to be a lengthy one, likely involving a protracted legal battle. The recommendations in the following blog post remain the same, however. Read on for more insight.

Will TikTok get banned in the United States? No one knows for sure. But the U.S. Congress is marching in a direction of forcing TikTok owner ByteDance to sell the app or be banned, owing to national security concerns. While Congress deliberates over the future of the app, businesses that rely on TikTok for advertising and marketing are faced with uncertainty. What should they do?  

First, it’s crucial to acknowledge the bipartisan support for this measure, indicating a widespread concern over national security issues associated with foreign-controlled apps like TikTok. This sentiment is likely to resonate with a portion of the American public, potentially leading to increased scrutiny and skepticism towards TikTok. 

But Congressional deliberation may take some time. Even though the U.S. House of Representatives quickly passed a bill calling on ByteDance to sell the app, the Senate has indicated it will take a more thorough, deliberate approach. Legislation will likely face legal challenges, leading to a protracted fight. And even though the Chinese government has indicated it would block the sale of TikTok, the app could in fact be sold instead of banned.  

Consider Other Platforms 

With the future of TikTok in the U.S. uncertain, brands should consider diversifying their social media presence across multiple platforms. While TikTok has been a valuable channel for reaching younger demographics and fostering engagement through short-form video content, it’s essential not to rely solely on one platform. 

For instance, Meta has responded to TikTok’s popularity by developing the Reels short-form video format. As a result, Instagram has been enjoying increased popularity. According to Sensor Tower, Instagram outpaced TikTok in app downloads during 2023. Sensor Tower also reported that Instagram’s downloads surged 20 percent year-over-year, compared to TikTok’s 4 percent growth. Instagram also led in download volume with 767 million versus TikTok’s 733 million.  

Meta is not the only game in town. YouTube Shorts and the perennial Gen Z darling Snapchat continue to challenge TikTok as a video sharing platform.  

Any exploration of other platforms should include an assessment of how to repurpose content for other platforms or mediums. While TikTok’s algorithm and format are unique, elements of successful content often can be adapted for use on other social media platforms or digital channels.  

Consider also how an uptick in brand (and user) activity on competing platforms could challenge businesses to differentiate themselves. An influx of users could lead to content saturation on these platforms, making it harder for individual brands to get noticed unless they adapt their strategies. And that’s not a bad thing if it means brands get more creative and resourceful to stand apart. 

Be Ready for a Changing Advertising Landscape 

With the influx of advertisers moving their budgets to other social media platforms, the cost of advertising could increase due to heightened competition for ad space. The basic principle of supply and demand suggests that prices could rise if the supply (ad inventory) remains constant while demand (from advertisers) increases. At the same time, other platforms might innovate or roll out new features to attract TikTok’s user base and advertisers. This could lead to new advertising products and opportunities, potentially at different cost structures. For more insight on how ad spend might shift, I recommend reading the eMarketer blog post, “If TikTok gets banned, where does brand ad spend go?“ 

Consider Alternative Influencer Partnerships 

If TikTok faces restrictions or a ban, brands should explore alternative influencer partnerships on other platforms such as Instagram, YouTube, or emerging platforms that may gain traction in the absence of TikTok. Influencer marketing remains a powerful tool for reaching audiences, and diversifying across platforms can mitigate risks associated with platform-specific issues. Some TikTok content creators on are already preparing for life without the app and urging their followers to join them on competing platforms. Brands should keep a close watch on their partnerships and be ready to pivot. 

Monitor Public Perception and Behavior 

Brands must stay vigilant in monitoring public sentiment surrounding TikTok and its potential ban. Depending on how the situation unfolds, there could be shifts in consumer attitudes towards the platform. This could affect brand perception and influence marketing strategies. So far, public perception has fluctuated. In March 2023, more than twice as many Americans support the U.S. government banning TikTok as oppose it – but by December 2023, a declining share of Americans favored a ban. By March 2024, sentiment was split evenly among Americans who support a ban, oppose it, and are unsure.  

Moreover, according to a recent Wall Street Journal article, TikTok usage is slowing down – not necessarily because of apprehensions over a possible ban, but because of increased competition from Instagram and an increasingly cluttered user experience. Bottom line: monitor sentiment and behavior.  

Prepare for Regulatory Changes 

Regardless of the outcome in the Senate, the scrutiny surrounding TikTok underscores the importance of staying informed and adaptable in response to regulatory changes impacting digital marketing. Brands should be prepared to adjust their strategies in accordance with evolving regulations and geopolitical developments. In fact, the public conversation about TikTok has sparked more lawmakers to call for a re-assessment of how social media apps treat user data.  

Be Proactive and Strategic 

In conclusion, I believe that while the House bill targeting TikTok raises significant concerns for brands and advertisers, it also presents an opportunity for strategic adaptation and diversification. By staying proactive and agile in response to these developments, brands can mitigate risks and continue to effectively engage with their target audiences across various digital channels. 

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