The Potential TikTok Ban and Why it Impacts Business

Businesses of all sizes are finding their place on TikTok and embracing the fast-paced video advertising it provides. However, if ByteDance does not sell its shares to a government-approved buyer, this could disappear. The original sale date was supposed to be January 19th. However, the new administration has extended this by 90 days. In this article, we look at what the potential TikTok ban looks like and why it will impact businesses across the US.

Why does the US want to ban TikTok?

There is great concern that TikTok and its parent company ByteDance are putting sensitive user data into the hands of the Chinese government. This relates to the many laws that allow the Chinese government full access to the data of Chinese-owned companies. Further concerns include the distribution of misinformation through the targeted use of political agendas. 

What would the ban do?

As TikTok users experienced on January 19th, the Supreme Court ordered a ban that would render TikTok unusable when using a US IP address. The ban also means that the app is unavailable in any US app store as of January 19th. Therefore, while current users can use the app during this 90-day deadline extension, new users can not download it. With the ban, the app is rendered almost completely useless, with users being unable to view or post content. Instead, the app will simply show a message stating it is unavailable in your region. Users can avoid this by using a VPN, however, that is a lot of extra work to view a social media app. 

Why does this impact businesses?

TikTok boasts over 170 million monthly active users around the world, which makes it a great advertising platform. With such a large amount of users, finding and building an audience that is interested in your specific products is relatively easy. Furthermore, the addition of TikTok Shop allows users to quickly and easily purchase products without leaving the app. All of this combines to create a powerhouse for businesses that can utilize the power of video marketing. The TikTok ban would mean that businesses will see a decrease in sales, revenue, and brand recognition. Especially if their primary audience is on TikTok. 

What can businesses do?

Businesses should be diversifying their marketing efforts. They can do this by also using platforms like YouTube Shorts and Instagram Reels to promote their business. Instagram, is a great alternative, as it also offers a shopping feature, making it very similar to TikTok. Businesses should also encourage their TikTok viewers to follow them on other platforms now, before the potential ban. After all, if the ban happens, your viewers will have no way to find you. Thus, you may lose a significant part of your audience. Right now, post your TikTok videos to both YouTube Shorts and Instagram Reels to build your profiles. The more content you have, the better your SEO rankings for those profiles will be. This will increase your reach on those platforms while improving the chances of TikTok viewers finding you if the ban happens. 

Luckily, creators and businesses now have several months to continue creating content and diversifying their presence before a potential ban. However, it is imperative that businesses review their social media marketing plans and create an alternative roadmap for the future without TikTok. This way, your business has a plan if ByteDance doesn’t sell or the Supreme Court ruling is not reversed.