Advertisers still betting on TikTok despite potential ban
Despite the possibility of a ban in the U.S. advertisers intend to continue spending on TikTok
TikTok is currently trying to avoid being banned in the U.S. as lawmakers have proposed a bill allowing President Joe Biden’s administration to ban apps they deem a security risk. The short-form video app has already been prohibited from government-issued phones in several countries.
Despite the possibility of a ban in the U.S. due to national security concerns, Reuters reported that advertisers intend to continue spending on TikTok because of its popularity with users. Insider Intelligence, a research firm, predicts that despite concerns about its Chinese ownership, company’s ad business will grow 36 percent this year to $6.83 billion.
Ryan Detert, CEO of TikTok said that none of their clients have expressed that they don’t want to invest in company. According to Mark DiMassimo, the founder of the creative agency DiMassimo Goldstein, TikTok is essential for advertisers until they have no other choice but to replace it.
However, media buyers acknowledge the potential threat of a U.S. ban as a concern. TikTok stated that it is directly addressing advertiser concerns through an open, fact-based, and continuous conversation.
Social media platform is introducing a new ad format to get more advertisers onboard, allowing brands to place ads alongside content from publishers such as Dotdash Meredith, and NBCUniversal. As part of the deal, publishers will receive a 50 percent cut of the ad revenue.