TikTok nonetheless faces a ban in the USA. However based mostly on the alerts they’re getting from the platforms’ company reps and their very own danger calculations, media consumers and model entrepreneurs are keen to guess it isn’t going anyplace.
In truth, regardless of caveats over the platform’s future, funding is rising. Slightly than decelerate in anticipation of a shutdown (which might have kicked in June 19, previous to President Donald Trump’s newest govt order), model spending on TikTok elevated from $542 million in April to $588 million in Might, in response to estimates shared with Digiday by MediaRadar.
Final month’s advert spend was 76% increased than in Might 2024. Amazon, Comcast, Disney, Walmart and Intuit have been the platform’s high advertisers between January and Might, collectively spending $213 million — a 75% rise on the identical interval final yr.
“Every spherical of deadlines, we get much less and fewer questions,” stated one media purchaser, who exchanged anonymity for candor. “We’re not listening to a ton of chatter from shoppers this time round. Even TikTok themselves have stated that they haven’t heard something from their inner management but.”
A TikTok spokesperson directed Digiday to an announcement the corporate launched on June nineteenth, which expressed gratitude for “for President Trump’s management and help in making certain that TikTok continues to be obtainable for greater than 170 million American customers and seven.5 million U.S. companies.”
Businesses and advertisers have been anticipated to boost the subject of the ban in Cannes final week, however sources instructed Digiday any questions or considerations have been thought-about non-issues; TikTok execs circumvented any ban discuss to spotlight product updates and viewers figures.
Shamsul Chowdhury, international evp of paid social at Jellyfish, stated that the company’s spending on TikTok had grown year-on-year and would doubtless proceed to take action, whatever the danger of the platform disappearing.
“Our TikTok spend has continued to realize momentum and talks of a ban, whether or not present or pending, haven’t had any affect on consumer spend,” he stated, with out offering monetary specifics.
Even media retailers that took a cautious strategy main into the primary ban deadline again in January have dropped their warning. Media company KSM paused consumer spending on TikTok in January in the course of the temporary blackout of the primary ban deadline, for instance. Since then, in response to vp of funding providers Sara Lemmerman, it’s stored the faucets operating.
“The shoppers for sure shoppers that we’re seeking to attain are actively utilizing the platform repeatedly, and [it] is a really robust solution to attain particularly these youthful audiences, so we’ve continued to remain the course,” she stated.
One purpose behind their confidence is TikTok’s personal messaging towards media companies. One media purchaser, who exchanged anonymity for candor, shared that their reps on the platform had stated (paraphrasing) of the ban: “It’s not going to occur as a result of Trump is dedicated to the primary modification and believes in free speech, [and] they’re grateful and grateful for his understanding.”
One other nameless company exec instructed Digiday there was “an incredible quantity of optimism” in TikTok’s communications with their firm. “Nobody talks in regards to the downsides,” they stated.
They’ve been reassuring consumers that model accounts would stay practical by way of any acquisition handover, and that viewers knowledge stays in the USA, in response to a second nameless media purchaser.
That’s to not say that media consumers and entrepreneurs are taking TikTok’s phrase for it.
The platform’s significance for manufacturers investing in creator advertising and marketing, social commerce and paid social means it’s inconceivable to disregard. That’s significantly true for manufacturers going after youthful shopper audiences, although TikTok’s consumer base is extra numerous than it was (30% of the app’s customers are aged 25-34, per YouGov).
“It’s the easiest way to win Gen Z,” stated John Gladysz, head of product at media company Noble Individuals.
“TikTok now firmly sits as our second most scaled platform when it comes to complete media beneath administration behind Meta,” stated Darren D’Altorio, svp of paid media, Wpromote. “TikTok has remained a crucial layer within the media plan,” he added (he didn’t state precisely how a lot media funding Wpromote funnels by way of TikTok).
Value is another excuse to stay somewhat than twist, famous Andrew Ruegger, chief knowledge, analytics, and know-how officer at Media by Mom. CPM charges (cost-per-thousand) differ broadly relying on the purchase however on common, however Ruegger stated that TikTok’s CPMs had fallen from $11-$11.50 to $9.50-$10.
No person’s ignoring the truth that TikTok may nonetheless be banned. Trump’s brinkmanship has delay the deadline thrice already, however there’s no assure his strategy will yield one other extension past Sept. 17.
Ought to a deal to purchase the platform’s U.S. enterprise lastly take form, entrepreneurs may alter how a lot price range they allot to it — particularly if a changeover contains alterations to TikTok’s prized For You algorithm. Lengthy-term plans for promoting on TikTok nonetheless carry a ‘purchaser beware’ stamp on the quilt.
However till these potentialities develop into realities, consultants like Lemmerman see no purpose to vary course within the brief to mid-term. “Till there’s some type of change that’s going to affect customers we’re staying the course,” she stated.
“It’s an empty menace and largely political posturing, and the shortage of urgency round taking motion displays that actuality,” stated D’Altorio.
