WHAT’S GOING ON

Recently, President Biden signed a new law that could lead to the shutdown of TikTok. Despite ongoing legislative developments, consumer engagement and perception remain unaffected, suggesting no immediate need to pivot away from TikTok.

It’s important to note that TikTok’s current situation is distinct from past challenges faced by other platforms. Currently, TikTok does not present any brand safety or reputational concerns, allowing it to remain an effective and valuable marketing tool.

OUR IMMEDIATE POV

At a high level, we recommend maintaining TikTok within your usual marketing mix. Simultaneously, we advise diversifying your marketing strategies to enhance presence, effectiveness, and mitigate risks from potential disruptions on TikTok.

WHERE WE GO FROM HERE

The future actions of ByteDance/TikTok are uncertain, yet the following outcomes are possible:

• TikTok finds a U.S. buyer and is sold by ByteDance
  This will likely cause a major shift in TikTok’s content delivery algorithms. We foresee a significant shift in TikTok’s marketing effectiveness, driven by changes in app usage and algorithm adjustments. Advertisers should stay vigilant and ready to adjust budgets to respond to these performance changes.
• TikTok successfully challenges the bill in court
  Anticipate lengthy legal battles; however, TikTok will remain available on the App Store and continue to be actively used. Continue leveraging TikTok unless brand safety issues arise due to shifts in user engagement.
• Legal challenges fail and no buyer is found
  TikTok will likely be removed from U.S. app stores, ceasing to be a viable platform for U.S. users. We recommend reallocating marketing funds to compensate for lost effectiveness. This could involve investing in other social platforms or exploring alternatives like Connected TV (CTV) to recapture user attention.