TikTok has cemented its position as a global social media giant, boasting over 1.6 billion active users. Its short video format resonates particularly with younger audiences, driving an impressive average engagement rate of 2.65%, far surpassing Instagram’s 0.7%. Notably, 55% of TikTok users report making impulse purchases inspired by content, highlighting its substantial influence on consumer behaviour.
Among Generation Z, TikTok is unrivalled, with 76% naming it their favourite social platform. The app’s appeal stems from its authenticity, immediacy, and highly personalised user experience. Its integration into daily life is undeniable, with 57% of users expressing distress at the prospect of a ban, underscoring its cultural relevance and marketing potential.
However, TikTok faces increasing scrutiny over data privacy and national security concerns. In response, U.S. lawmakers have enacted the Protecting Americans From Foreign Adversary Controlled Applications Act, effective January 2025. This legislation requires TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations or face a nationwide ban. This decision would disrupt brands, creators, and small businesses dependent on the platform, forcing a shift in digital marketing strategies.
For SMEs (Small and Medium Enterprises), TikTok has been revolutionary, offering an affordable and effective way to engage targeted audiences. Its sophisticated algorithm enables even small accounts to achieve viral success, with many entrepreneurs crediting the platform for increased sales and customer engagement. A potential ban would have far-reaching implications for industries like fashion, beauty, music, and entertainment, which heavily rely on TikTok’s trends and expansive reach.
Fashion brands, in particular, have excelled in leveraging TikTok’s dynamic environment to captivate younger audiences. Labels such as Loewe, Marc Jacobs, and Jacquemus have created compelling content and strategic collaborations to engage Gen Z and millennial consumers. Similarly, brands like Lululemon have tapped into emerging trends, such as the “Pink Pilates Princess” aesthetic, aligning their products with low-impact sports like Pilates to target evolving demographics.
Valeria Lipovetsky, a beauty and fashion influencer and Chief Creator Officer at the influencer marketing platform Humanz, primarily attracts a millennial audience but is actively working to engage more Gen Z followers on alternative platforms. If in the event TikTok faces a ban, Lipovetsky anticipates her followers would likely migrate to platforms such as Instagram and, to a lesser extent, YouTube Shorts.
TikTok also plays a significant role in promoting sustainability. Creators use the platform to advocate for eco-friendly living, sharing DIY upcycling tutorials and zero-waste tips that inspire millions. This positions TikTok not just as a marketing tool but as a hub for fostering environmental awareness among younger, eco-conscious audiences.
TikTok’s contribution to the U.S. economy further underscores its significance, adding over $24 billion to GDP in 2023. It supports 170 million users, 7 million businesses, and countless creators who depend on it for growth and revenue. A ban would disrupt this ecosystem, reshaping the global digital advertising landscape.
Competitors like Instagram are poised to fill the gap. By 2025, Instagram is expected to generate over half of Meta’s U.S. ad revenue, making it a viable alternative for displaced creators and advertisers. Influencers such as the beauty and fashion expert, Valeria Lipovetsky are already diversifying their presence, engaging more Gen Z followers on Instagram and YouTube Shorts.
TikTok’s unparalleled engagement and influence make it indispensable for brands, creators, and industries. However, with rising regulatory challenges, businesses and influencers must adapt to an uncertain and evolving digital marketing landscape.
Sources:
Wikimedia Foundation. (2024, December 21). TikTok. Wikipedia. https://en.wikipedia.org/wiki/TikTok
What does the TikTok ban mean for small businesses? (n.d.). https://www.inc.com/larry-alton/what-does-the-tiktok-ban-mean-for-small-businesses/91068804
Siu, A. (2024, December 20). Uncertainty over TikTok’s U.S. future splinters creators and agencies. Digiday. https://digiday.com/marketing/the-creator-economy-is-both-unfazed-and-preparing-for-tiktoks-pending-ban-in-2025/
Kasumovic, D. (2024, December 5). TikTok Marketing Report 2024 – key trends, statistics, and insights. Influencer Marketing Hub. https://influencermarketinghub.com/tiktok-marketing-report/
Ceotodaymag. (2024, December 12). TikTok ban: Impacts on creators and small businesses. CEO Today. https://www.ceotodaymagazine.com/2024/12/tiktok-ban-looms-uncertainty-grows-for-creators-and-small-businesses/
