Everything Marketers Need to Know about the TikTok Bill
In many ways, TikTok has revolutionized the marketing landscape. Its unique algorithm has helped brands and creators engage with consumers in ways that weren’t possible in the past. Paired with influencer collaborations and personalized advertising, TikTok has democratized marketing, empowering businesses of all kinds to connect with consumers on a more personal level, build tight-knit communities, and drive viral sales.
Multiple studies validate TikTok's power to drive full-funnel impact for brands:
- 92% of TikTok users say they take action after watching a TikTok video.
- 65% of TikTok users agreed that when shopping online, they always rely on online reviews and creator recommendations to decide what to buy.
- 64% of TikTok users say that they will buy a product directly after seeing a creator advertise.
- TikTok is 1.7x more likely than the other platforms to be the source for product discovery.
- TikTok is now the world’s most popular search engine, with nearly 40% of young people preferring the app over Google for searches.
Needless to say, the potential ban of TikTok in the United States holds major implications for brands across industries. But there’s no need to panic. Keep reading to learn more about the TikTok bill and what brands can do to minimize impact.
What is the current status of the TikTok bill?
For years, lawmakers in the US have unsuccessfully tried to shut down TikTok in order to tackle the app’s alleged national security risks, claiming that the Chinese government could lean on ByteDance, TikTok’s China-based parent company, for access to sensitive data belonging to its 170 million US users or to spread propaganda.
This past weekend, the House of Representatives passed a foreign aid bill, which included a potential ban on TikTok in the US — unless ByteDance sells the social media platform to a government-approved buyer. The bill was passed on to the Senate, who approved it on Tuesday. Finally, today, President Biden signed the bill into law.
But don’t jump ship yet!
The provision gives ByteDance roughly 9 months to sell the app or face a national ban — a deadline the President could extend to a year. According to experts, it may even take years to take effect because ByteDance is likely to challenge the statute in court, citing that a forced sale would violate users’ First Amendment rights.
TikTok CEO Shou Chew also announced in a video posted to the platform, “Rest assured, we aren’t going anywhere. We are confident, and we will keep fighting for your rights in the courts.”
Aspire’s advice
For now, there’s no need to abandon the platform or shift your existing TikTok strategy. Nothing will happen to the platform for at least another 9 months, and the app will operate as business-as-usual during this time.
What we do advise is diversifying your marketing channel mix. Relying too heavily on one channel has never been a good marketing strategy, as brands and creators have no control over the fate of these platforms — remember the sudden disappearance of Vine?
In the case that your brand is working exclusively with TikTok creators today, use this opportunity to start building relationships with creators across Instagram, Facebook, YouTube, and Pinterest as well. By taking a multi-channel approach, you can maximize audience reach, create multiple touchpoints with consumers, and find customers on the channels they respond with best.
Additionally, expand your content distribution strategy to Instagram and YouTube. Instagram Reels and YouTube Shorts both follow similar algorithms to TikTok, and both platforms have the ability to enhance content discoverability and provide personalized content to users based on their interests, just like TikTok.
Continue leaning into the “lo-fi,” short form video content that works so well on TikTok, whether it’s a “Get Ready With Me” video or a try-on haul. Casual content that feels like you’re on FaceTime with a friend is what resonates with young consumers today — regardless of which platform they view it on.
In short, there’s no need to panic about the TikTok bill. Use this as a call-to-action to diversify your social channel presence and content distribution strategies, embracing a multi-channel approach to safeguard against unforeseen circumstances.
If you have any questions on this topic, get in touch with us at hello@aspireiq.com.
