TikTok is set to be banned in the USA this month, but the platform is still asking advertisers to make large expenditures – and wants to secure these with any repayments.
On January 19th, the time has already come: TikTok will no longer be allowed in the USA at this point, unless there is a last-minute rescue. After Information from the BBC TikTok has asked for a postponement, a so-called “emergency pause”, regarding the entry into force of the law, which could mean the end of the platform in the USA. TikTok must be sold by parent company ByteDance to a US-based company by January 19th – or the platform will be banned. ByteDance vehemently refused to sell, and an appeals court recently rejected TikTok’s objection to the legal requirements. It is questionable whether the new request will be granted. US President-elect Donald Trump will not be inaugurated until shortly after the deadline, but he made TikTok in one Interview mit NBC News At the end of 2024 there was initially little hope that he would want to prevent the sale or ban, but now the company has a silver lining.
Despite the precarious situation, TikTok wants to continue to retain advertisers – and lures them with the assurance of reimbursements for ad spending beyond January 19th The Information reports.
TikTok ban in the USA is approaching:
Creators and brands are taking desperate steps
Refunds offered: lucrative advertising business in danger for the time being
The first advertisers in the USA are already withdrawing from TikTok. They fear that their spending will be in vain or even that they may not get their money back if TikTok is banned in the US due to the law signed by Joe Biden. But TikTok wants to counteract this fear. The Information reports emails to advertisers that insure possible refunds should the worst case scenario occur for the entertainment platform. In the first half of 2024, ByteDance increased Non-Chinese revenues increased by 60 percent to almost 17 billion US dollars. A large part of this income comes from TikTok, the major international sales driver. TikTok introduced various new advertising solutions in 2024 alone, including new placement options for Pulse campaigns, experimental mid-roll ads and smart solutions such as Smart+, GMV Max and Out of Phone: Retail.
We’re excited to announce Out of Phone: Mission, an extension to our Out of Phone program that enables brands to leverage one of our most powerful advertising tools, Branded Mission, beyond the platform. Learn more on our Newsroom: pic.twitter.com/7mfQhxclCO
— TikTokComms (@TikTokComms) June 20, 2024
TikTok still has hope and could even optimize its ad business
While TikTok has already failed in some courts with the hope of suspending the ban or at least delaying it, the situation could change dramatically on January 10th. The US Supreme Court has one for this appointment Hearing scheduled with arguments for suspension of ban. In addition to TikTok itself, TikTok users have also filed a complaint and want to prevent the ban. Over 170 million users use the app in the USA.
Donald Trump also commented again on the TikTok case – after a meeting with TikTok CEO Shou Zi Chew last week. Now he would like to grant TikTok a reprieve, which he is asking for as the future US President. This comes as a surprise since he himself pushed for a TikTok ban in the USA during his first term as US President. However, he may want to continue using the relevant platform for political purposes or to secure the favor of the numerous TikTok users and creators. BBC Sea Trump is pushing for a “political solution.”
There may be a happy ending for this one after all. In this case, TikTok should continue to hope for immense advertising revenue in the large US market and offer advertisers plenty of room to develop.
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Source: onlinemarketing.de
