TikTok's future in the U.S. is uncertain due to recent legislation signed by President Biden to force a sale or ban of the platform. This has led to agencies adjusting their social media strategies and preparing contingency plans with clients and influencers. Despite the uncertainty, TikTok's growth rate is expected to slow to 18% year-over-year, totaling around $23 billion in global revenue.
Agencies are considering diversifying their platform investments and experimenting with newer channels. However, communication from TikTok to agencies and brands has been minimal. Some agencies have received information about user data security, ByteDance's corporate structure, and a timeline of security implementations, while others have received no guidance.
Agencies are advising clients to proceed with caution on TikTok due to the potential disruption of the platform. They are also advising clients to diversify their social media strategies and consider other platforms like Instagram. Influencers are being advised to make backups of their content and repurpose popular posts on Instagram and YouTube Shorts.
Agencies are also exploring alternatives to TikTok as they plan for the future. They are testing other platforms like Reddit, Snap, and Pinterest, and paying attention to different creator compensation programs.
A survey by Clarify Capital found that 26% of Americans discover new products or businesses on TikTok weekly, and 44% of small business owners using TikTok for business operations believe a ban will decrease their revenue. If TikTok is banned, small business owners said they would invest more in Instagram, Youtube, their company website/SEO, Facebook, and email marketing.
Despite the potential ban or sale, some believe there will be little impact on the average user. However, this situation serves as a reminder for agencies to experiment with emerging platforms and technologies.
