The uncertain future of TikTok in the U.S. due to potential ban could be a win for Snap. The ban, initiated during former President Donald Trump's tenure, has led marketers to create contingency plans. TikTok has retaliated with a lawsuit to prevent the enforcement of a bill that would require its parent company, ByteDance, to sell TikTok or face a ban in the U.S.
In the midst of this uncertainty, Snap is positioning itself to capitalize on TikTok's predicament. Patrick Harris, president of the Americas at Snap, suggests that people are exploring other platforms for investment. Snap has been working on attracting advertisers with incentives, improved ad products, and a new brand campaign. In Q1 2024, Snap's ad business generated nearly $1.2 billion, following the $1.36 billion in Q4 2023 and $1.19 billion in Q3 2023.
Harris believes that Snap still has room to grow by expanding its advertiser base across all segments. The potential TikTok ban could be a significant opportunity for Snap to attract more ad dollars.
Other platforms like Google are also eyeing the potential benefits of a TikTok ban. Google is encouraging advertisers to spend more on YouTube in light of the potential ban.
Despite the competition, none of the four agency executives Digiday spoke to have heard directly from Snap, Google, or other major platforms about the TikTok ban. However, since TikTok started gaining a larger market share, it has been a target for competitors. Platforms like Meta, Snap, and YouTube have launched their own versions of TikTok's short-form video format.
Short-form video has become a major theme in the industry, making it a key area for platforms to compete for ad dollars. Brands and agencies are preparing contingency plans in case of sudden changes in TikTok's situation.
