TikTok Advertisers Unfazed by U.S. Court Ruling, Market Volatility
TikTok advertisers are taking a wait-and-see approach following a U.S. appeals court ruling that requires ByteDance, the parent company of TikTok, to sell its U.S. assets or face a ban on the popular short-form video app. The decision is set to take effect on January 19, which would lead to a ban on the app, which is used by 170 million Americans.
TikTok’s president of global business solutions, Blake Chandlee, announced that the company plans to seek an injunction to stop the ban from taking effect until the U.S. Supreme Court has an opportunity to review the decision.
Despite the uncertainty surrounding the app’s future, advertisers are maintaining their activities on the platform, while also preparing for a potential reallocation of their investments. Jason Lee, executive vice president of brand safety at media agency Horizon Media, stated that while some advertisers are developing contingency plans, they have not pulled back from the app.
The potential ban could lead to a significant shift in the digital advertising landscape, with Meta Platforms and Alphabet’s YouTube likely to benefit from the loss of TikTok. According to estimates, TikTok’s U.S. ad revenue is expected to reach $12.3 billion this year.
The stock prices of Meta Platforms, Alphabet, and Snap Inc. rose on Friday, with Meta’s shares reaching an all-time high. The potential for a TikTok ban has analysts and investors reevaluating the social media landscape, with many predicting a significant impact on content creators and small businesses that rely on the app for income.