As uncertainty looms over TikTok’s future in the U.S., marketers proactively strategize their next moves. The Supreme Court is set to hear ByteDance’s case on January 10, 2025, with a potential ban on TikTok slated for January 19. According to The Hill, former President Donald Trump has sought a delay to negotiate a resolution that could preserve the platform. However, national security concerns and legislative actions continue to fuel the platform’s uncertain future.
TikTok’s role in eCommerce adds another layer of complexity. Rolling Out reports that a ban could cost U.S. businesses and creators $1.3 billion in revenue within the first month alone. Likewise, Business Insider reports that sellers who rely on its integrated shopping features, such as TikTok shoppable videos, face disproportionate risks compared to influencers, who may transition more easily to other platforms. These issues highlight TikTok’s unique position as a critical tool for brands driving awareness and conversion.
TikTok remains resilient with U.S. advertisers despite its uncertain future
Although a TikTok ban may sound daunting, brands have grown accustomed to facing and overcoming uncertainty. In 2023, when Elon Musk's purchase of X made it a more risky platform for advertising, brands reallocated their spend, and moved forward. Similarly, in 2020, when Facebook faced ad boycotts, brands succeeded by remaining nimble.
Therefore, it is actually unsurprising that, even with a pending potential ban, TikTok is still driving the second-most traffic of any media platform in the MikMak Shopping Index.
TikTok’s advertising power, driven by features like TikTok shoppable videos, and growth in the past few years are undeniable, and brands recognize its potential. The MikMak Shopping Index has revealed that TikTok traffic from brands grew over 200 percent year-over-year, becoming the second-largest traffic source on the MikMak platform, driving 36.4 percent of traffic from media sources, just behind Meta. TikTok’s growth has primarily come at the expense of Alphabet (including Google channels such as paid search, YouTube, and DV360) , which saw its share drop by nearly 65 percent compared to Q4 2023.
If TikTok is banned, brands are likely to reallocate budgets to Alphabet channels
While TikTok sees a large amount of traffic, features like TikTok shoppable videos make it a vital upper-funnel discovery tool for brands. While viewers do click through to purchase, others swipe on by, which can translate to low conversion rates.
Meanwhile, Alphabet’s platforms are already dominant in driving conversions, with Purchase Intent Rates significantly outperforming TikTok. Meta’s broad reach offers brands an established alternative to maintain awareness and engagement. With higher conversion rates, brand advertisers will likely return to Meta and Alphabet platforms in the case of a TikTok ban.
It is apparent that other platforms would be presented with major opportunities to win advertising share if TikTok were banned. However, TikTok’s unique ability to drive awareness and consideration for brands with its personalized algorithm and the platform’s eCommerce capabilities, like TikTok shoppable videos, remains unmatched by competing platforms.
Stay close to the data to prepare
TikTok’s pending ban represents a critical inflection point for the digital advertising ecosystem. By partnering with an eCommerce analytics and enablement platform like MikMak, brands can see exactly what media platforms their products are performing well on, and reallocate spend to the places where shoppers are most likely to discover and purchase your products. To learn more about how your brand can leverage MikMak, schedule a demo today.
