How Would a TikTok Ban Affect Your Business?

How Would a TikTok Ban Affect Your Business?

The Biden administration has threatened TikTok’s Chinese owners with banning their app in America if they don’t divest their ownership stakes.

TikTok is already banned on US government devices, but many observers think the political and financial fallout would be too great for a nationwide prohibition. Likewise, a sale doesn’t seem to be on the table for Beijing as China’s Ministry of Commerce spokesperson Shu Jueting said last week that they would “resolutely oppose” the forced sale of TikTok.

Shu also said this “would seriously damage investors from multiple countries including China” and hurt the country’s “confidence to invest in the United States.” 

Enforcement would be its own problem — TikTok has more than 150 million active users in the United States, and it’s likely many of them would look for workarounds to stay on the app.

The US Congress also held a tense hearing with TikTok CEO Shou Zi Chew for roughly five hours last week. It seems a compromise is in the works with TikTok hiring a former Biden aide to join their growing lobbying team in an effort to show their willingness for greater “regulation of content platforms.” 

But in the event that TikTok is banned in the US, it’s important that you have your backup plan ready now.

Diversification Is Key

Many brands rely on TikTok for organic marketing and paid advertising as their primary revenue driver, so a TikTok ban would potentially harm a great number of small business owners. With the UK and EU joining the US in considering TikTok bans, even global companies could see a significant drop in revenue if the prohibitions came into effect.

No matter what happens, the best way for marketers to future-proof their strategies is through omnichannel approaches. Community engagement on multiple platforms and a healthy balance of paid advertising and SEO will help any brand prepare for a potential disruption.

If a ban were to be put in place, Meta ads can offer a new landing spot for campaigns that have worked well on TikTok. Instagram Reels reach similar demographics as TikTok’s core users, and Reels see engagement rates nearly double those of other post types on the platform. Our social media marketing team can help you develop robust campaign planning and analytics-driven growth strategies.

As another alternative to TikTok, email marketing typically has a better ROI than social media initiatives. While social channels can be great for building brand awareness, email can engage with loyal customers and win repeat business. Winning marketing campaigns often use social media and email strategies in tandem for the best results.

Free Marketing Strategy Review

If you’re concerned about losing your core audience in a potential TikTok ban, the best path forward is to focus on what you can control. Coalition Technologies helps ecommerce brands in fashion, food, the arts, and more scale faster and generate more revenue. Talk to a digital strategist for a free consultation and strategy review.

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