What TikTok's Potential Ban Means for the Future of Businesses and Influencers
On March 13, 2024, the United States House of Representatives passed a bill in which Americans could lose access to TikTok within the next six months. If signed into law, this bill would require Beijing-based parent company ByteDance to sell the stake to an American-owned company. Lawmakers have long argued that TikTok is a threat to national security and that this bill would protect user data and prohibit the flow of potential Chinese propaganda. But TikTok isn’t going away just yet! The bill will first travel to the Senate. If passed, President Joe Biden told reporters “If they pass it, I'll sign it,”.
Image sourced from AP News
What could this mean for small businesses?
Over seven million small businesses use TikTok as a platform to promote themselves. Because of the potential for a wide reach, TikTok is a great platform for small businesses to build brand awareness. It has proven to be very successful in attracting more potential customers and generating increased sales. TikTok allows businesses an easy way to make fun and engaging content that resonates with their audience. This is important because customers value relatable and genuine content.
A great example of such success stories is Emily Swift, owner of Darkslide Film Lab. Emily posts TikToks documenting her process of developing film as a part of her small business. When one of these short videos went viral, Swift began seeing client orders pouring in leading to upwards of $6,000 in extra revenue per month. With the potential ban looming, Swift is worried about losing this extra flow of money. Attempting to simply mirror this success on another platform due to TikTok’s impressive algorithm is nearly impossible.
Images sourced from CNBC
To protect themselves, marketing agencies are urging businesses to start taking basic precautions. One New York marketing agency, Billion Dollar Boy, has encouraged its clients to spread their influencer spending across other platforms in preparation for the potential ban. This will ensure that businesses don’t have all their eggs in one basket. Even then, however, competitors such as Instagram Reels and YouTube Shorts haven’t mastered the magic formula TikTok has in relation to driving sales. Jasmine Enberg, a principal analyst at research firm eMarketer said, “Even though you can replicate the technology, you can’t really replicate the culture, and people aren’t behaving necessarily in the same way as they are on TikTok,” It is clear that if the TikTok ban goes into place, it’s affects on businesses will be felt across the board.
Will this ban strip influencers of their jobs?
In this age of social media, short-form videos are taking over the marketing landscape; not only for businesses but for personal branders and influencers as well. If TikTok does not sell their company, we could slowly see an end to some of our favorite creators. Without this platform, it may be very difficult for some influencers to emulate their success on other platforms. On TikTok, creators are making an average salary of $121,765 which could soon all come crashing down.
TikTok makes it easy for influencers to profit off of their personality and relatability. Showing the good, the bad, and the ugly attracts viewers and keeps them coming back for more. TikTok has allowed some influencers to be able to support themselves financially. Without TikTok, these influencers would likely lose a majority of their income. The looming potential ban could have far-reaching consequences for both individual influencers and the broader social media landscape. It would likely require influencers to adapt to new circumstances, explore alternative revenue, and potentially redefine their careers.
Image sourced from TRIBE
Navigating The Change
The potential ban of TikTok could have major implications for small businesses, influencers, and the general public alike. Small businesses would face the loss of a valuable marketing platform which would greatly disrupt their ability to reach and engage with a vast audience of potential customers. Influencers, who have built their careers and livelihoods on TikTok, would be forced to adapt their strategies and seek alternative avenues for content creation. Even the general public will be affected by the ban. Losing TikTok would mean the loss of a popular source of entertainment, creativity, and community. This has the potential to reshape online social dynamics and content consumption habits. We can only predict what the future of TikTok looks like, but potential fallout surely represents the evolving nature of digital platforms and the ever-changing landscape of media.
About Piper
Piper Young is a Junior pursuing a degree in Advertising & Public Relations with a minor in Studio Art. This is her second semester in GrandPR where she serves as the Media Coordinator as well as an Account Associate. Piper also runs the GVSU Alumni social media accounts and is the GVPRSSA Promotions Committee Chair. After graduation, Piper hopes to further her career in social media and eventually work as a publicist in the sports or entertainment industry.