TikTok. Literally, the clock is ticking.
United States President Joe Biden signed a bill in April 2024 that gives TikTok’s Chinese parent, ByteDance, 270 days to sell the popular social media platform. According to the bill, TikTok would be prohibited from U.S. app stores and “internet hosting services” supporting it if a sale does not go through.
So, what does this mean? In theory, TikTok has until January 19, 2025, to find a buyer.
However, the deadline could be extended another 90 days if progress has been made.
ByteDance is not going down without a fight and is pursuing legal action against the bill.
Our friends at Inspira wrote a blog post titled “Should You Worry About the Potential TikTok Ban?” to put the lawsuits into perspective and ease marketers' minds.
What would a world without TikTok look like? A ban would have a significant economic impact.
According to a report authored by Oxford Economics, TikTok generated $14.7 billion in revenue across twelve critical sectors of the U.S. economy and contributed $24.2 billion to the overall US GDP in 2023. Small and medium-sized businesses in the food and beverage industry were among the sectors most impacted.
For those who want to be in control (and let’s be honest, many founders do), Inspira suggests taking a wait-and-see approach but still making plans for a world without TikTok.
Here are five things entrepreneurs can do today to prepare.
Have a presence on other platforms. TikTok is an excellent platform for CPG brands. However, if TikTok is no longer allowed in the U.S., various social media channels will benefit. Check out our blog, “What Social Media Platforms are Best for Your Brand?” to understand the options and which makes the most sense for your company. Encourage your TikTok audience to follow you on those other platforms.
Make sure TikTok followers know where to find you online. Create or update a bio link to a designated webpage that houses all the important links you want to share with your audience. Linktree is a great, free option. Once they’re on your site, try to capture email addresses and SMS info so you can continue the conversation via text and email.
Introduce influencers to other channels. Content creators and influencers are most likely to be impacted by a TikTok ban. If you regularly work with influencers, check in with them directly (or with your influencer management agency) to understand their plan for a potential ban. Then, start proactively working with them on other channels.
Prioritize sales on TikTok vs. getting followers. Hypothetically, if TikTok gets banned, those followers will be left behind. TikTok ads are still a worthwhile investment, but the goal should be to drive sales. Here’s a guide from TikTok on ads for small businesses.
Keep tabs on how other CPG brands are preparing. Google ‘CPG brands and TikTok brands’ or subscribe to digital marketing newsletters to learn from others. Every company will have to strategize for the same scenario and it could be helpful to learn from others. In a recent Forbes article, Milani Cosmetics’s Chief Marketing Officer, Jeremy Lowenstein shared he was exploring other platforms, including YouTube and Instagram and alternative apps like Flip, a shopping platform that allows users to earn money by reviewing and purchasing beauty products from brands.
Bottom Line: As of now, TikTok is not ceasing operations. If it’s not sold, the bill would only impact the United States, and TikTok would still be available internationally. Additionally, 2024 is an election year, and things might change between now and January 2025. So, Inspira’s strategy is perfect – let’s wait and see and control what we can control.
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