What the TikTok Ban Means for Your Business?


Why is TikTok Getting Banned in the US?

All social media platforms collect user data and use it for the purposes of advertising and in order to serve content that is relevant to each specific user. This tracking has long been scrutinized by the United States government with other platforms, including Meta, testifying before congress about how their platform functions.

User privacy is always a conversation that goes hand-in-hand with social media, but what makes TikTok unique and, therefore, uniquely scrutinized?

TikTok owner, ByteDance, a Chinese-owned company, poses a significant enough security risk due to concerns the Chinese government could gain access to sensitive user data. Unless sold to an approved buyer, the United States government will ban TikTok for Americans.

What does the TikTok Ban Bill Stipulate?

The TikTok ban bill (H. R. 8038), states the company that owns TikTok, ByteDance, must sell their shares of TikTok in order to avoid a shutdown. This presents a challenge for ByteDance as the Chinese government has the right to make decisions regarding the sale of the company.



When will the TikTok Ban Take Affect?

TikTok has 9 months to comply with the United State government’s requirements. They will be given the option to extend that deadline by three months. The earliest we will see a TikTok ban in the US, even without the extension, would be January of 2025.

Despite how dire the news that Joe Biden signed a TikTok ban into law might sound, there will be no immediate impact on your TikTok Advertising efforts, neither in regards to paid or organic.

Is a TikTok Audience Still Worth Investing in for Your Business?

Ultimately, the decision about where to place your advertising dollars rests with you. However, we are here to help you make informed decisions about your marketing investments. Here is some additional information to help you decide:


  •  TikTok boasts over 1.5 billion active monthly users, which means it currently has the capacity to reach most target demographics.
  • Given how popular the short-form video application is, we do not anticipate a large increase in the cost per conversions you are able to achieve by advertising on TikTok.
  • We recommend diversifying your advertising portfolio in order to minimize your risk. If a significant percentage of your marketing budget is on TikTok, now would be the time to perform a comprehensive review of your efforts.
  • If your social audience is primarily on TikTok, it is advisable to begin encouraging your TikTok audience to find you on other platforms as well like Instagram and YouTube, who also support short-form video content like TikTok.


Do You Still Have Concerns?

The frank Agency specializes in strategy, content creation, and audience building, and account management in TikTok for Businesses. Feel free to contact us today for assistance gauging how impactful a TikTok ban would be on your overall advertising efforts.

Category: Social Media
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