Just hours before the U.S. Supreme Court was set to hear arguments on whether the law that could ban TikTok is constitutional; the app announced that it would begin shutting down on January 19 if the ban was not delayed or overturned. This seemingly eliminates the option of finding a U.S. buyer before the deadline.
President-elect Donald Trump requested that the U.S. Supreme Court delay the potential TikTok ban until his administration can explore a “political resolution” to the issue.
The ban is scheduled to take effect on January 19, 2025 — just one day before Trump’s inauguration on January 20th — unless TikTok secures a U.S. buyer
The U.S. Supreme Court agrees to hear arguments about whether the law that could ban TikTok is constitutional. This decision does put the law on hold; it just means that the Court will make its decision after hearing arguments on January 10, 2025 — just nine days before TikTok’s sell by deadline.
TikTok’s request for a temporary injunction is denied. Following this decision, TikTok appeals to the U.S. Supreme Court, which has yet to decide whether it will hear the case.
TikTok requests a temporary injunction to block the law that would ban the app, pending a review by the U.S. Supreme Court.
After challenging the law signed by President Biden, on Friday, December 6th, a federal appeals court ruled against TikTok. This ruling means that TikTok could be banned in the U.S. starting January 19, 2025, unless ByteDance, its Chinese parent company, sells its stake in the app.
If the ban goes into effect on January 19, 2025, existing TikTok users can still use the app on their devices, but it will be removed from Apple and Google’s app stores, preventing new downloads. Additionally, TikTok will be unable to issue updates, security patches, or bug fixes, which will eventually make the app unusable.
TikTok could find a U.S. buyer before the January 19th deadline, avoiding a ban. This would likely lead to significant changes in TikTok’s content delivery algorithms and marketing effectiveness.
Despite the recent updates, WITHIN’s recommendation remains the same: continue maintaining TikTok within your usual marketing mix and maximizing its benefits while it’s still available. At the same time, we recommend diversifying your marketing strategies to increase your presence, enhance effectiveness, and reduce the risks associated with potential disruptions on TikTok.
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.
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.
The future actions of ByteDance/TikTok are uncertain, yet the following outcomes are possible:
1) 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.
2) 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.
3) 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.
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