Despite TikTok’s Political Turmoil, Tech Platforms Pitch For Ad Deals

(CTN News) – With Snap and Meta looking to take ad dollars away from TikTok, short-form video took center stage at social media and tech companies’ annual presentations to advertisers.

NewFronts’ presentations in New York follow vice-president Biden’s signing legislation giving Chinese technology company ByteDance one year to divest TikTok or the app will be banned for national security reasons. TikTok will fight legislation.

On Thursday evening, TikTok announced new partnerships in sports and entertainment, including an agreement with NBCUniversal to post clips of this summer’s Paris Olympics on the app.

Based on an estimate by the research firm Emarketer, TikTok is expected to generate $8.66 billion in ad revenue in the United States this year. Even though TikTok is only a fraction of the size of Google and Meta, it has become a pioneer in the short-form video craze and influenced competitors to develop similar functions.

It is crucial that TikTok conveys the impression that it is business as usual, even though it is anything but,” said Jasmine Enberg, principal analyst at Emarketer.

As part of its partnership with NBCUniversal, Snap, the company that owns photo messaging app Snapchat, announced on Wednesday that it would also send popular influencers to the games to capture content related to the games. Live Nation will also provide clips from its top concerts.

Currently, Snapchat and its partners are having very productive discussions about how Snapchat can assist, as a lot of noise is being generated,” said Patrick Harris, Snap’s president for Americas and partnerships. While we are working hard to ensure that our platform remains reliable and viable, we have our heads down.”

Video content that has been professionally produced is designed to attract brands that are wary of the downsides of social media or artificial intelligence (AI).

According to Robert Silver, head of media at digital marketing company Razorfish, brands must take more time to consider the quality of environments.

In its NewFront, Meta, the owner of Facebook and Instagram, focused on Reels, which is the company’s TikTok competitor and now accounts for more than half of the time users spend on Instagram.

Emarketer’s Enberg stated that “Instagram Reels already stands to benefit from a TikTok ban, and Meta wants to ensure that it can attract as many potential users and revenues as it can.”

The company reported on Monday that YouTube Shorts, its short-form video feature, are increasingly being viewed on televisions as well as mobile devices.

Even though TikTok’s future is uncertain, advertisers say they intend to focus on the near-term and some plan to continue advertising until it becomes impossible.

According to Alex Stone, senior vice president of agency partnerships at media buying firm Horizon Media, we need to put some blinders on and focus on what innovative capabilities TikTok’s NewFront offers advertisers.

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