How devastating is a TikTok ban for brands?
TikTok was in the process of bringing in a wider range of brands, with the launch of its ad management platform. That notwithstanding, only 12.2% of brands view TikTok as a key channel, according to a recent survey by PRWeek. So, in sum, the loss of TikTok wouldn't be catastrophic for brands as a whole. Too few have yet to build strategies for it.
BUT, with TikTok’s (potential) ban, marketers in the US would be losing THE most dynamic channel for organic results and rapid impact on social media. For brands who have unlocked the formula on TikTok, the results have been exceptional. Organic results for many brands have been off the charts!
In the work we do with clients on planning investments on social media, we talk a lot about how to manage a portfolio - diversifying risk and reward. Taken in the context of being the high reward/risk part of a larger portfolio, even now, TikTok could still be worth investing into, IF it’s only a 10-15% share of spend.
For brands with a larger share of spend on TikTok and those brands with significant sunk costs on the platform, this (potential) ban will sting!
