In a dramatic turn of events, TikTok, the popular video-sharing app, has experienced a temporary shutdown in the US as a result of a new law banning its operation across the country. The app, owned by the Chinese tech giant ByteDance, has been at the centre of a heated debate over national security and data privacy, with concerns over its links to the Chinese government prompting the ban.
On Saturday night, US users of TikTok were met with a stark message: “You can’t use TikTok for now.” The announcement followed a Supreme Court ruling that upheld a law passed in April 2024, which required ByteDance to sell the app to an approved US buyer by 19 January, or face a ban. With that deadline passing, the platform was removed from both Apple and Google’s US app stores, and TikTok.com stopped serving videos. The app was briefly offline for 12 hours, before being granted a 75-day reprieve by President Donald Trump, who had previously advocated for a ban on the app.
Despite the temporary restoration, the threat of a permanent ban looms large, as the Supreme Court ruling remains in place, demanding that TikTok be sold or face further restrictions. Potential buyers include high-profile figures such as Elon Musk, Mark Zuckerberg, and MrBeast, but until a deal is finalised, TikTok remains in a state of uncertainty.
A Global Ripple: The Economic and Social Impact
The US ban has highlighted just how deeply integrated TikTok has become in the lives of both businesses and creators. The app boasts a user base of 170 million Americans, with many using it not just for entertainment, but as a vital tool for income and community building. Creators such as Nicole Bloomgarden and Erika Thompson voiced their concerns, with Bloomgarden estimating a significant salary cut if TikTok is permanently banned.
For small businesses, the impact would be severe. TikTok Shop has become a key channel for brands to market and sell products directly to consumers, rivaling giants like Amazon and Google. Rachel Sterling, CMO at Identity Digital, pointed out that a potential TikTok ban would force brands to quickly adapt their e-commerce strategies, seeking new platforms for social shopping.
Thomas Walters, CEO of Billion Dollar Boy, stressed that the loss of TikTok would be a massive blow to US creators and businesses, estimating nearly $300 million in lost earnings for the two million creators who rely on the app. Meanwhile, Raf McDonnell of Talent & Brands highlighted the devastating effects on small business owners who often juggle part-time content creation alongside running their enterprises.
A Changing Marketing Landscape
The uncertainty surrounding TikTok’s future has already started to ripple out across the global marketing landscape. In 2024, US ad spend on TikTok surged to $4.8 billion, a 27% increase from the previous year. With the platform’s fate uncertain, marketers are faced with the challenge of reassessing their strategies.
Callum Gill, head of strategy at Rehab Agency, explained that the ban could lead to a “budget crisis” for brands, with companies forced to reallocate resources to other platforms such as Instagram or YouTube. However, Gill warns that these platforms may not offer the same cultural relevance or return on investment that TikTok provides, leaving brands scrambling to salvage their campaigns and justify the new direction to stakeholders.
Dylan Patel, Head of Social Media at Born Social, pointed out that while the US ban could cause short-term disruptions, it would not have a significant long-term impact on the UK market. Brands that have already seen success on TikTok are likely to maintain their presence on the platform, weathering the storm as they wait for clearer guidance on the app’s future.
The UK: No Ban in Sight… For Now
While TikTok faces growing scrutiny in the US, the situation in the UK remains far less contentious. UK government officials have stated that there are currently no plans to follow the US in banning the app. Darren Jones, Chief Secretary to the Treasury, made it clear in an interview that the UK would only consider such a move if there was a legitimate security threat to British interests. He added, “For consumers who want to post videos of their cats dancing, that doesn’t seem like a security threat to me.”
However, the app’s controversial nature has not gone unnoticed in the UK. TikTok was banned from UK government devices in 2023 over security concerns, though it remains available for general users. As the US wrestles with the app’s future, many are questioning whether other countries will follow suit, or if the platform can weather this storm of geopolitical tension.
What’s Next for TikTok and Its Users?
For now, TikTok’s future in the US remains precarious. While President Trump’s 75-day reprieve offers a temporary respite, the app’s long-term viability is contingent upon a sale to a US-based entity. This uncertainty has already forced many creators and businesses to consider diversifying their digital presence, ensuring they are not too reliant on a single platform.
As TikTok faces growing political pressure, businesses and creators alike will need to stay agile, exploring new ways to engage audiences and safeguard their revenue streams. The app’s rapid rise has reshaped social media marketing, but its uncertain future is a reminder of how quickly the digital landscape can change. Brands that weather this uncertainty successfully will be those that have a diversified approach to digital marketing and are ready for whatever comes next in the ever-evolving world of social media.
Next Steps for Businesses:
- Diversify marketing strategies: Explore new platforms and channels to reduce reliance on TikTok.
- Reallocate ad budgets: Adjust spending to ensure continued reach and engagement with target audiences.
- Monitor developments: Stay updated on TikTok’s status in the US and the UK, and be prepared for any sudden changes.
