Should your brand invest in a robust TikTok strategy and presence or avoid it because of the growing uncertainty about its future in the US? 

TIKTOK UNPACKED: NAVIGATING ITS ROLE IN YOUR SOCIAL MEDIA STRATEGY

Here’s a question that might be keeping brand decision-makers up at night: Should you invest in a robust TikTok strategy and presence or avoid it because of the growing uncertainty about its future in the US?
No matter what direction you go, understanding the broader picture of TikTok, including its role in the social media ecosystem and the potential US ban, is essential for determining its place in future marketing strategies.
Understanding TikTok: What is it and who’s using it?
When TikTok launched in 2016, it carved out a niche in social media by allowing average individuals with little or no following to go viral and become long-term influencers, mostly through short, music-based snippets. The often funny and creative clips gained traction among a younger audience, and TikTok quickly became the place to engage tween and teen audiences.
Over the past eight years, TikTok has evolved from a short-content youth entertainment platform to one that includes audiences of all ages, with videos that go up to 60 minutes and where upcoming and popular influencers, brands, and artists take full advantage.
TikTok content has expanded to include trends, humor, political discussions, and everyday-life snippets, with an approach and content designed to appeal to a broader age range, including older Gen X and millennials. Indeed, TikTok’s content pillars—humor, creativity, satire, and authenticity—make it a valuable platform for brands seeking to tap into its broad demographic appeal.
According to <a href="https://sproutsocial.com/insights/tiktok-stats/" target="_blank" rel="noopener">Sprout Social</a>, with just over 1.5 billion monthly active users, TikTok is the fifth-most popular social media platform in the world, trailing behind Facebook (3.049 billion), YouTube (2.491 billion), WhatsApp (2 billion), and Instagram (2 billion). In 2023 alone, TikTok was the highest-grossing app and was featured on Apple App Store’s must-have app list. 
Notably, the US has the largest TikTok audience of any country, with 148 million monthly unique users.
In addition to staying true to its focus on creativity and authenticity, TikTok has added features like built-in recording and editing functions that enable users to enhance content with music, effects, and filters. Its unique algorithm also gives every video a fair chance to go viral, fostering rapid audience growth and encouraging creative experimentation.
TikTok’s role in modern marketing
TikTok has effectively transformed the social media landscape by focusing solely on video content, leading to both the spread of TikTok-generated videos and an increased focus on social video in general. Viral content from TikTok often spreads to Facebook, Instagram, and Twitter, driving users back to TikTok to view the original videos. This trend prompted Meta to develop 15-second video snippets called Reels in 2020, which were integrated into <a href="https://about.fb.com/news/2021/09/launching-reels-on-facebook-us/" target="_blank" rel="noopener">Facebook by 2021</a>. TikTok’s influence also pushed other major platforms like LinkedIn, Pinterest, X (formerly Twitter), and Reddit to incorporate more video formats into their offerings.
Additionally, TikTok prioritized engagement from the start, focusing on user interactions with content. Today, TikTok remains the most engaging social media platform, boasting an <a href="https://sproutsocial.com/insights/tiktok-stats/" target="_blank" rel="noopener">average engagement rate of 2.65 percent by follower count</a> (per Sprout Social). This significantly outpaces Instagram, which has an average engagement rate of just 0.70 percent.
TikTok privacy concerns and potential ban in the US
TikTok’s fast growth has not come without challenges, as questions around data privacy and national security have plagued the platform for much of its existence. This concern has been especially noticeable in the US. Over the past five years, American politicians and others have fueled conversations about whether TikTok—whose parent company is China-based ByteDance—should be forced to sell their app to a non-Chinese-based company in order to continue to operate in the US.
The main concern, some argue, is that the platform gives the Chinese government direct access to millions of US users. With tensions growing, the US Senate officially passed a bill in early 2024 stating that TikTok will be banned in the US unless ByteDance sells the app to an American owner. In April, <a href="https://www.cbsnews.com/news/tiktok-ban-bill-why-is-tiktok-getting-banned-senate" target="_blank" rel="noopener">President Biden</a> signed the bill into law, setting a deadline for the ban to take effect in 2025 unless the company complies. While TikTok has filed a case on the legal credibility of this potential ban, it also <a href="https://www.reuters.com/legal/tiktok-says-us-ban-is-inevitable-without-court-order-blocking-law-2024-06-20/" target="_blank" rel="noopener">acknowledged in July that unless a court order blocks the law</a>, the ban will likely go into effect because the company does not plan to sell the platform.
This turn of events has impacted TikTok’s revenue, as large brands (including Target) have reduced their ad spend by as much as 30 percent, according to <a href="https://www.socialmediatoday.com/news/big-brands-reduce-tiktok-ad-spending-ahead-us-removal/720923/" target="_blank" rel="noopener">Social Media Today</a>. However, the ban likely will be delayed due to <a href="https://www.npr.org/2023/03/23/1165579717/tiktok-congress-hearing-shou-zi-chew-project-texas" target="_blank" rel="noopener">ongoing litigation</a> and the potential for a US buyer to acquire TikTok. This gives brands additional time to capitalize on their TikTok activity and to define an updated social strategy in preparation for US audiences potentially losing access to the platform.
How should your brand handle TikTok’s uncertain future?
TikTok remains at a crossroads, with its future in the US clouded by potential regulatory changes and national security concerns. This uncertainty makes it crucial for brands to consider their approach to the platform carefully. While TikTok’s engaging content and extensive user base offer significant marketing opportunities, particularly among younger audiences, the potential US ban poses a considerable challenge.
Key considerations brands need to take when considering activity on TikTok:
<ul>
<li>Assess how TikTok aligns with your brand’s overall social media strategy, considering the current digital landscape. Consider your target audience, the platform’s focus, and the creative approach needed.</li>
<li>Evaluate the resources needed for TikTok content creation, including time, budget, and personnel. Ensure that the investment is feasible and in line with your brand’s broader marketing budget.</li>
<li>For brands already active on TikTok, evaluate the benefits from both organic and paid efforts. This analysis will help determine if continued engagement at the current level is advantageous.</li>
<li>For brands not yet on TikTok, consider if investing time and resources into building an active presence supports your brand’s long-term goals.</li>
<li>Develop a contingency plan in case TikTok is removed from the US social media landscape.</li>
</ul>
TikTok remains a powerful tool for brand engagement and content creativity as it continues to have a unique space in the social landscape. Whether or not TikTok is part of your marketing strategy, it is crucial to recognize how the platform has shifted the focus toward greater engagement and video content across all platforms. Because of the political challenges taking place, marketers need to be prepared to adapt strategies as the situation evolves, ensuring they can continue to connect with audiences in the most effective ways possible.
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Do you have questions or thoughts or just want to chat about TikTok or social media strategy? Shoot an email to Emily at <a href="mailto:mediagroup@cmdagency.com">mediagroup@cmdagency.com</a>.

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