04/24/2024 | News release | Distributed by Public on 04/25/2024 02:34
April 24, 2024
TL;DR: TikTok's future ownership is in question, but given its importance in the social media marketing mix for U.S. brands and drawn-out timeline behind legislative impact, we recommend clients maintain their approach to TikTok while continuing to explore alternative social-first video platforms as part of ongoing channel prioritization.
This week Congress passed legislation that would require TikTok parent company ByteDance to sell the platform to a company that is not affiliated with a U.S. adversary (e.g., China, Russia, Iran) within 270 days or risk being banned in the United States. The bill was signed into law by President Biden today.
Although changes to social platforms occur often, this news is notable for a few reasons:
The app will not disappear from consumer phones overnight. The bill itself acknowledges the app has 270 days to sell with an additional 90 day buffer window at the President's discretion. Brands should also anticipate litigation that may further delay action concerning the platform's ownership. It could feasibly be more than a year before changes happen on the platform.
For now, we recommend brands maintain their approach to TikTok. If the channel factors heavily into your social media strategy and marketing mix and is delivering against your marketing plan's goals, continue as usual.
However, this is also a great moment to begin exploring and testing your brand's presence on other social video-first platforms like Instagram Reels, YouTube Shorts, and Facebook Reels. Although each platform has its own benefits and audience opportunities, in the changing world of social media platforms it's always wise to assess changes, implications, and opportunities across the available channel mix.
If and when there is a time where it makes sense to pause content, advertising and engagement on TikTok, it will be time to reassess.
POSTED BY: Erica Tackett