{"id":18438,"date":"2025-01-16T15:00:39","date_gmt":"2025-01-16T20:00:39","guid":{"rendered":"https:\/\/illumin.com\/?p=18438"},"modified":"2026-02-27T11:00:07","modified_gmt":"2026-02-27T16:00:07","slug":"tiktok-advertising-us-ban","status":"publish","type":"post","link":"https:\/\/illumin.com\/insights\/blog\/tiktok-advertising-us-ban\/","title":{"rendered":"Times up for TikTok advertising in the US"},"content":{"rendered":"\t\t
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The TikTok ban in the US is set to hit and it will have a major impact on the advertising world.<\/span><\/p>

Social media<\/span><\/a> and TikTok advertising in the US have been buzzing \u2013\u00a0 though it won\u2019t be buzzing for much longer in the United States (unless the Supreme Court intervenes). While the platform is currently live and awaiting a promised executive order, it will face a complete shutdown in the country if it doesn’t sell its US operations. <\/span><\/p>

On March 13, 2024, the US House of Representatives pushed (in a 352 to 65 vote) to pass<\/span> a bill that could lead to a nationwide ban against TikTok<\/span><\/a>. The legislation named <\/span>Protecting Americans from Foreign Adversary Controlled Applications Act<\/span><\/i>, if enacted, would give TikTok about five to six months to separate from its Chinese parent company, ByteDance, or else app stores in the US (such as Apple and Google) would be banned from hosting TikTok on their platforms.<\/span><\/p>

Lawmakers supporting the bill expressed national security concerns over TikTok, citing the Chinese government could use its intelligence laws against TikTok\u2019s parent company ByteDance, forcing it to hand over data from US users.\u00a0<\/span><\/p>

Other politicians also argued that China could use TikTok\u2019s powerful algorithm to feed its users<\/span> political propaganda or run disinformation campaigns<\/span><\/a>. Others also raise concerns over the mental health and safety implications of TikTok use among US youth.<\/span><\/p>

TikTok, on the other hand, has stood firm in its opinion that the ban is a ploy to shut down the social media giant in the US in favor of other, US-based platforms.\u00a0<\/span><\/p>

From the very beginning, TikTok has pushed back with<\/span> lobbying campaigns<\/span><\/a>, including app notifications urging TikTok creators to call members of Congress. TikTok CEO Shou Zi Chew also published a video on social media platform X, warning users of the harmful consequences of the legislation if the US enacts it, as well as reassuring creators that TikTok has been keeping users\u2019 information safe from outside manipulation.\u00a0<\/span><\/p>

While TikTok has faced <\/span>operational shutdowns in Canada,<\/span><\/a> it remains available to the public and there is no current talk in the country of banning the app for users.\u00a0 <\/span><\/p>

The ban passed by the United States government states that ByteDance would have to de-invest and sell control over TikTok or its recommendation algorithms for Americans to retain access. ByteDane declined this solution and instead, announced it would be closing the app to US users on January 19, 2025.\u00a0<\/span><\/p>

The ban has been in and out of the news since its inception and in the end, was brought before the United States Supreme Court.<\/span><\/p>

The long-awaited news by advertisers and users arrived on Friday, January 17 \u2013 the ban would be upheld. Americans would have to say Goodbye. <\/span><\/p>

Advertisers were put on notice<\/b><\/h2>

TikTok\u2019s US ban will certainly impact consumers. According to<\/span> eMarketer<\/span><\/a> data, a majority of US Gen Z (ages 15-26) social media users prefer using TikTok over Instagram for various activities \u2013 such as watching short clips, watching live streams, and viewing long videos.<\/span><\/p>

Additionally, another<\/span> report<\/span><\/a> by eMarketer suggests that roughly half of US teens ages 13 to 17 use TikTok (49%) and YouTube (54%), and it continues to be the overall favorite social media platform among teens, beating Snapchat, Instagram, and X.<\/span><\/p>

Many US teens spend roughly 2-4 hours a day on social media for entertainment, communication, education, and informational purposes. This also includes learning new information about products and services via ads and commercials. Many US teens are exposed to advertising on TikTok and other social media platforms.<\/span>That said, the news of a TikTok ban will shake things up for US advertisers, creators, and marketers. Many marketers and brands turn to the social media giant for their digital strategies. TikTok advertising spend reached nearly $4 billion in 2023 according to<\/span> MediaRadar<\/span><\/a>. Now, in 2025, that number is set to plummet.\u00a0<\/span>Tech and media experts say the controversy surrounding TikTok should be a warning bell for companies who have been utilizing and associating themselves with the platform. Pierre-Lo\u00efc Assayag \u2013 CEO and co-founder of influencer marketing platform Traackr \u2013 says<\/span> advertisers and social media stakeholders should be on alert<\/span><\/a>.\u00a0<\/span><\/p>

Marketers should consider the business risk of continued association with TikTok \u2013 regardless of the legislative outcome \u2013 and search for better opportunities.\u00a0<\/span><\/p>

With those relying on TikTok advertising facing uncertainty, it opens doors for competitors. Digital advertising alternatives like<\/span> Meta<\/span><\/a>, YouTube, and<\/span> Google Ads<\/span><\/a> would benefit from a potential US ban of TikTok, as it reduces competition in the social media space (especially in the video content segment).\u00a0<\/span><\/p>

Insider Intelligence<\/span><\/a> suggests that with the ban in place, Meta could take between 22.5% and 27.5% of TikTok’s US ad revenues, generating between $1.94 billion and $2.38 billion in potential incremental ad revenues in 2025.\u00a0<\/span><\/p>

YouTube could also net another $1.24 billion to $1.53 billion in ad revenue. Factoring in $410 million to $500 million of those TikTok ad revenues going to Google’s display and search business, YouTube and Google\u2019s parent Alphabet could net $1.74 billion to $1.94 billion in total from TikTok\u2019s US exit.<\/span><\/p>

Other platforms such as X, Pinterest, Snap, and LinkedIn, all stand to benefit, but to a far lesser extent. The same is true for<\/span> connected TV<\/span><\/a> and retail media players like Amazon, Netflix, Disney, and Walmart.<\/span><\/p>

This also brings to light another important marketing strategy: advertisers should immediately ensure their media mix is diversified.\u00a0<\/span><\/p>

As Assayag states \u201c<\/span>It\u2019s never a good idea to put all of your eggs in one basket. This is especially true in rapidly changing spaces where legislation hasn\u2019t caught up to innovation. So while brands continue to invest in TikTok, they [should be] sure to invest their time, resources, and budget in diverse ways.<\/span><\/i>\u201d<\/span><\/p>

With the flexibility and diversity of social media platforms, the marketing shift may not be as difficult. Previously, it was difficult to translate TikTok content to other platforms. Now, you can cross-promote TikTok videos onto Instagram Reels or YouTube shorts.<\/span> Multi-channel, cross-channel, and omni-channel marketing<\/span><\/a> has never been easier.\u00a0<\/span><\/p>

The battle for TikTok was a long one<\/b><\/h3>

This isn\u2019t the first time the social media phenomenon has faced such a controversy. In 2023, Montana lawmakers tried to pass<\/span> a state law banning TikTok<\/span><\/a> but were ultimately blocked by a federal judge on grounds that it likely violated the First Amendment.\u00a0<\/span><\/p>

Furthermore, the US ban poses economic and financial consequences. According to a study issued by financial consultancy<\/span> Oxford Economics<\/span><\/a>, TikTok drove $14.7 billion in revenue for small-business owners last year and contributed $24.2 billion to U.S. gross domestic product. The study also found that TikTok supports at least 224,000 American jobs, with more than 7 million American businesses marketing or selling their products through TikTok, according to the company.<\/span><\/p>

TikTok fought long and hard, exercising all of its legal rights. In the end, it decided not to consider a sale of its US operations. There were many technical and legal hurdles in selling the company, even though it would have had many happy buyers. One such potential buyer was former Treasurer Secretary Steven Mnuchin, who expressed interest and was prepared to put together<\/span> a consortium to buy the platform<\/span><\/a>.\u00a0<\/span><\/p>

The end of TikTok advertising in the US<\/b><\/h3>

It is possible firms investing in TikTok advertising may see little to no change in their strategies should the US ban not come to fruition. Advertisers could still stick by the app for targeting users from other countries. But this isn\u2019t likely.\u00a0<\/span><\/p>

Regardless, TikTok is no longer a haven for short-form content in the US – for users or advertisers. Now is the time for a moment of reflection for companies everywhere on the role social media advertising plays, especially for those heavily relying on a single social media platform for their marketing efforts. This could be a turning point for many; to stop putting all their eggs in one basket and start diversifying and pivoting their advertising strategies towards other platforms.<\/span><\/p>

To see more from illumin, be sure to follow us on X<\/a><\/span>\u00a0<\/span>and <\/span>LinkedIn<\/span><\/a> where we share interesting news and insights from the worlds of ad tech and advertising.<\/span><\/p>

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