Marketers seem unconvinced of looming TikTok ban but assemble contingency plans just in case

The current status of the TikTok ban in the U.S. is that it has been brought back into discussion after Senate Republican Leader Mitch McConnell called for a ban unless ByteDance sells its stake. The bill has passed a vote in the House of Representatives and is now awaiting a decision in the Senate. The future of TikTok in the U.S. remains uncertain, and if the ban is enacted, TikTok would have six months to find new owners.

Brands' reactions to the potential TikTok ban vary, but many with active presences on the app, such as Halara and Duolingo, seem unfazed. These brands have already diversified their social media strategies to not rely solely on TikTok. For instance, Halara has begun a brand-building campaign, and Duolingo has focused on growing its audience on other platforms like Instagram Reels and YouTube Shorts. Similarly, BelliWelli has invested in out-of-home advertising after experiencing viral success on TikTok.

TikTok's potential ban is a concern for viral marketers and direct-to-consumer brands because many have relied on TikTok's viral nature for growth. If the ban passes, these brands will face the challenge of losing a platform that has been at the heart of their success. The ban could disrupt their marketing strategies and force them to seek alternative ways to engage with their audience and drive business.

The projected ad revenues for TikTok in the U.S. this year are expected to reach $8.66 billion, according to eMarketer. This represents a growth of 31% year-over-year. TikTok is also expected to account for 10.5% of U.S. social network ad spend and 2.8% of U.S. digital ad spend.

Agency executives suggest contingency plans that include brand building on TikTok's competitors, such as Instagram Reels and YouTube Shorts. These platforms have not yet achieved the same level of cultural cachet or engagement as TikTok, but they are seen as viable alternatives. Agency executives advise clients to monitor the progress of the bill and to strengthen their brand presence on other social media platforms.