Despite Threats Of a US Ban, TikTok Advertisers Are Sticking With The App

(CTN News) – Due to TikTok’s immense popularity with users, advertisers remain committed to spending on it despite threats of a possible ban in the US over national security concerns, advertising experts claim.

ByteDance, which owns TikTok, is fighting to prevent a ban after lawmakers introduced a bill that would allow the administration of President Joe Biden to ban apps that pose a security risk.

In a number of countries, short-form video apps have already been banned from government-issued phones.

In conjunction with NewFronts, a week-long event where social media and streaming video platforms reveal new content and features for marketers, TikTok will host a presentation for advertisers on Thursday.

TikTok’s advertising business is predicted to grow 36% this year to $6.83 billion, despite the concerns over its Chinese ownership.

Influential, a company that provides influencer marketing services, says none of its clients have advised clients not to invest in TikTok.

The outbreak does not appear to be contagious, he added. In addition to Pepsi and the NFL, Influential has worked with a wide variety of brands.

Reuters spoke to two media buyers at two different major ad agencies who said that Washington’s scrutiny of TikTok has yet to have an impact on their clients’ plans to use the app.

The two buyers who spoke on condition of anonymity discussed their relationship with under the condition of confidentiality.

There will be a new ad format announced by TikTok at its presentation on Thursday, allowing brands to place ads next to content from publishers such as BuzzFeed, Dotdash Meredith and NBCUniversal, and will give these publishers a 50% cut of the advertising revenue tied to their ads.

The popularity of TikTok has made it irreplaceable until (advertisers) are forced to replace it, according to Mark DiMassimo, founder of the creative agency DiMassimo Goldstein. He has worked with brands such as Hello Fresh and Samsung in the past.

In spite of that, several media buyers acknowledged during the advertiser presentations that there would be a threat of the US ban being part of the discussion.

In a statement published on Tuesday, TikTok said its head of US trust and safety would depart the company next week, leaving TikTok without a key executive who was responsible for content moderation and the development of safety tools for the division that houses the data of US users.

According to Stephani Estes, chief media officer at the digital marketing agency Goodway Group, “there’s a lot of uncertainty, and a lot of uncertainty about the general economic situation,” said Estes. There are a lot of what-ifs that you need to consider.”

In a statement, TikTok said it is taking steps to address the concerns of advertisers in an open, fact-based, and ongoing dialogue.

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