The TikTok ban drama continues.
Today, the Supreme Court announced its decision not to block a federal law that could effectively ban TikTok in the U.S. as early as this weekend unless the app’s Chinese parent company, ByteDance, divests its ownership.
With the ban looming—and now more imminent—advertisers have been scrambling to adapt, as the law could take effect on Sunday, the 19th.
Why This Matters:
The ad industry’s response has been a mix of concern and opportunistic thinking. TikTok’s popularity with consumers has made it a fairly critical channel for brands. However, many began preparing for this scenario as soon as the ban was announced last year.
If the ban does, indeed, go into effect, Meta (including Facebook and Instagram) and Google (particularly YouTube) are expected to capture nearly 50% of the displaced TikTok ad dollars. Platforms like Amazon, Pinterest Shopping, and Snapchat are also likely to benefit as marketers shift budgets elsewhere.
According to an Adweek report, TikTok has informed ad buyers it will pause U.S. ad campaigns starting Sunday, January 19. However, U.S. media buyers can still buy inventory internationally, and advertisers will be able to restart campaigns without losing data if the ban is delayed.
Importantly, the law doesn’t require TikTok to shut down entirely. Instead, it mandates that ByteDance sell the platform to a U.S. company to continue to function. This distinction undermined TikTok’s First Amendment defense, as ByteDance, a Chinese company, doesn’t have First Amendment rights in the U.S.
Interestingly, the ban never really scared off adtech companies from hugging TikTok. Nielsen, for example, announced a partnership with them in December.
Experts React:
Here are some of the best adtech-related tweets about the ban:
Our Take:
Brands will adapt—they have other platforms to rely on for short-form video. This goes for open web or walled gardens. The bigger issue here, in our view, is attention fragmentation.
Where will users go for an experience comparable to TikTok?
Unlike Instagram, TikTok is primarily a destination for video content, not social interaction. YouTube Shorts may seem like the closest alternative, but for many TikTok loyalists, it’s seen as a hollow imitation. Ad dollar displacement will be challenged as attention displacement is figured out.
Here’s a good take on that by marketing and trends expert, Michael J. Miraflor. He’s right!
