As per credible sources, China-based video sharing platform TikTok is likely to face a ban in the United States. Sources with relevant information stated that the company is providing refunds to campaigns which may not be run amidst the potential ban.
The recent development comes along the heels of administrative order signed by U.S. President Donald Trump, banning the Chinese messaging platforms TikTok and WeChat from 15th September 2020.
For those unfamiliar, TikTok is an application for making short videos which is still in its developing phase. The video sharing social networking service is projected to generate revenues worth USD 1 billion in the year 2020, which is a trivial share of total sales of its Chinese parent company ByteDance’s, state credible reports.
TikTok has evidently gained popularity among brands that aim to reach the youth through this app, who use the platform for making dancing, comedy, sketch, or lip-syncing videos with respect to the brand’s product or service.
Speaking of the move, Rob Pearsall, Senior Vice President of Biddable Media at Havas Media, was reported saying that TikTok will continue to support ad campaigns and refund them if they are unable to run. The company will also help major influencers to migrate to another platform if the app is banned, he added.
As per sources, given the potential ban, few advertisers are making contingency plans and thinking of other applications to utilize their marketing budget.
In this context, Account Director at HYFN, Meghan Rao claimed that the photo-messaging platform Snapchat is an alternate option for advertisers who want to reach out to the youth which are using TikTok.
Sources also claimed that brands are considering advertising on other platforms such as Byte and Triller, which are apparently competitors of TikTok. This in turn has resulted in an upsurge in number of downloads of these apps recently.