How to Interpret the TikTok Drama as a Marketer

If you’re following media and marketing in the news, then you know just how controversial a topic TikTok is! This behemoth video platform has rocketed in importance in the media landscape, but it has also drawn the ire of many lawmakers and policy experts at the state and local levels. Now, some are even going so far as to propose bans on TikTok. What will the impact of these measures be on marketers?

We might not have a crystal ball, but we can make some recommendations about how marketers should prepare for any potential or probable TikTok drama.

Read on to Learn More!

The Context of the TikTok Drama

TikTok has exploded onto the social media scene in the last few years. By some estimates, TikTok has over a billion users, and 150 million are located in the U.S. This has also led to TikTok’s viability as a marketing platform increasing as well. With that type of reach, TikTok has been a great destination for advertisers, and the platform pulled in a cool 10 billion in 2022.

However, TikTok has not gained this type of fame without making some enemies along the way. Allegations of improper data storage and collaboration with the Chinese government have made TikTok a target of criticism within defense circles. Cries for banning the app have finally come to fruition, with Montana becoming the first state in the country to ban TikTok. The efficacy of this legislation and the constitutionality of the ban are still in limbo, but it is worth considering what marketers need to think through when following the public discussion on TikTok.

3 Takeaways from the TikTok Drama

TikTok Bans Would Impact Certain Industries

Any potential TikTok ban would certainly have ramifications for a myriad of different industries, but those consequences would not be equally distributed. Large brands that use video content on TikTok in the form of paid advertising would likely merely pivot to another advertising platform. Other industries would be upended by TikTok-prohibiting legislation. Many online influencers or performers currently use their own TikTok content as a quick way of reaching additional eyes, and any ban would have drastic consequences for smaller individuals, brands, or movements.

Other Social Channels Would See a Rise

If advertisers divested from TikTok, either as a consequence of legislation or due to increased public scrutiny, we’re fairly confident who would be the big winners: TikTok’s rivals. Most advertisers who are using TikTok use it for brand awareness and conversion-based advertising campaigns. Divestment from TikTok would almost certainly result in a transition to other brand and conversion-based marketing plays. This would theoretically float all boats, but we would expect to see the biggest increase in ad revenue at Facebook and Google.

All advertising platforms at these two multimedia conglomerates would benefit, but YouTube and Instagram advertising are the two we would really expect to see fill the void left by TikTok. These mediums are visual-focused, great for short-form video content, and are also super targeted. We’re keeping our eyes on the news for more information about any potential TikTok bans, but know that these social media platforms are useful alternatives in the meantime if you don’t feel like TikTok is a good investment at the moment.

Data Security Is a Top Concern

Regardless of where you fall in the TikTok debate, one thing is clear. Data security is a huge concern at the moment and one that is likely to stay top of mind throughout 2023. This is actually a bigger macroeconomic trend. TikTok is just the latest flashpoint in the story of consumer data and how to protect it. Cambridge Analytica, numerous Facebook data leaks, high-profile cases of doxxing via social media, and the deprecation of cookies by Google have all been in the news over the last few years. TikTok is the most controversial topic within the data security space at the moment, but we assure you that it will not be the last. Savvy marketers would do wise to think about how they are securing data and assuring users that their data policies are sufficient. This has always been a good practice in the digital age, and it’s now becoming a necessity.

Expect the Market to Adapt

It’s always difficult to say where proposed regulations will take the industry. It is, however, likely that these regulations will lead to massive changes in the industry and probably in unexpected ways. Maybe regulation will open the door for other US-based video apps. Maybe large corporations will prioritize other video channels or use lobbying to advocate for less regulation of Tik Tok. Maybe user consumption of viral video content will change. Regardless of the impact, it is almost certain these regulations WILL have some sort of massive impact on the marketing industry and likely in unforeseen ways.

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