Potential TikTok ban – Impact on businesses

With the future of TikTok in the US hanging in the balance, businesses that built a presence on the platform are facing a wave of uncertainty. A potential ban could disrupt marketing strategies, sever connections with a massive user base, and force companies to scramble for new avenues of engagement.

This article dives into the potential consequences of a TikTok ban, but more importantly, offers practical solutions for businesses to safeguard their digital presence and ensure continued success, regardless of the platform’s fate.

What has happened so far?

In March 2024, the US House passed a bill targeting TikTok over national-security concerns. If the Senate and President Biden approve, ByteDance must sell TikTok within six months or face a US ban. Biden has said that once it hits his desk, he will sign off on the bill that bans TikTok. Countries such as Canada, Taiwan, the UK, and Australia have banned TikTok from government-issued devices owing to security concerns, with India putting a complete block on the app.

China blocks US applications

China has a long history of blocking various US applications, often citing national security concerns or a desire to control information flow. Here’s a breakdown of some prominent examples:

• Social media: The crackdown started in earnest around 2009. Platforms like Facebook (2009) and Twitter (various blockages, full block in 2012) were restricted after being used to organize protests. This extended to Instagram (full block in 2014) and Pinterest (around 2017) as well.
• Messaging apps: Similar concerns led to the blocking of WhatsApp (sporadic since 2017, full block unconfirmed), Telegram (2015), and Signal (around 2017). Messaging within China is dominated by homegrown apps like WeChat.
• Productivity and cloud storage: Services like Google Drive (since 2014), Dropbox (sporadic blocks), and Slack (around 2017) are restricted owing to their potential for file-sharing that could bypass government control.
• Video sharing: YouTube (since 2009) and Vimeo (around 2014) are inaccessible in China. This extends to live-streaming platforms like Twitch (2016) as well.

Impact on businesses

With several countries around the world going through the process of putting a full ban on TikTok, this is going to have several effects on businesses and industries that have come to rely on TikTok:

• Loss of marketing reach and engagement: A TikTok ban would significantly affect a business’s ability to reach a large and highly engaged user base. This could cripple marketing campaigns built on the platform’s unique algorithm and ability to turn viral trends into brand awareness. Businesses would lose a powerful tool for customer interaction and building brand loyalty.
• Disrupted influencer marketing strategies: Many businesses rely on influencer marketing on TikTok to reach target audiences and promote products. A ban would disrupt these established partnerships, forcing companies to find new ways to collaborate with influencers or rebuild their influencer networks on alternative platforms.
• Uncertainty and platform migration costs: A potential ban creates a period of uncertainty for businesses that have invested in building a presence on TikTok. They would face the challenge of migrating their content and audience to a new platform, incurring costs and potentially losing momentum during the transition. This could lead to a scramble for alternative short-form video platforms that can replicate TikTok’s success.

What should businesses do?

• Diversify your social media presence: Don’t put all your eggs in one basket. Even if the ban doesn’t happen, a strong presence on multiple platforms is key in today’s digital marketing landscape. Explore options like Instagram reels, YouTube shorts, or emerging platforms focusing on short-form video content. Tailor your content to each platform’s strengths and audience demographics.
• Focus on building brand loyalty through owned channels: Invest in your website, app, and email marketing. Nurture a loyal customer base that directly engages with your brand, regardless of social media platforms. Offer exclusive content, discounts, or promotions to those signed up for your channels, creating a sense of community and reducing reliance on external platforms.
• Explore alternative influencer marketing options: Research and identify influencers on alternative platforms with engaged audiences that align with your brand. Start building relationships with them now, even if you maintain a TikTok presence. This way, the transition is smoother if a ban occurs, and you have already established connections with influencers on other platforms.

I believe the ban will happen, as I can’t see TikTok selling the company to you as a US business. I don’t see TikTok making it into 2025, so do your due diligence to implement the suggestions above.

Keron Rose is a digital strategist who works with businesses to build their digital presence and monetize their platforms. Learn more at KeronRose.com or listen to the Digipreneur FM podcast on Apple Podcasts, Spotify, or Google Podcasts.