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Everything You Need to Know About the TikTok Ban
Derek Oss • March 22, 2024
TikTok's foreign ownership and access to personal data has fueled concerns in Congress, possibly leading to a nationwide ban on the app through H.R. 7521. Let's explore this potential ban’s consequences and see how businesses and marketers can know what to do if or when will TikTok be banned.
In recent years, TikTok has exploded as a social media powerhouse for small and medium-sized businesses. Its user-friendly format and massive audience are goldmines for reaching new customers, building brand awareness, and cultivating engagement. However, a political storm is brewing that could threaten TikTok's future in the US.
The Bill’s Driving Force
U.S. Lawmakers are apprehensive about the potential for a citizen’s data to be accessed by foreign officials through TikTok. This data could encompass a user's search history, precise location, private messages, and viewing habits.
ByteDance (TikTok's Chinese parent company) has maintained that user data is stored outside of China and is not subject to Chinese law. However, this claim has been disproven, with some creators' information stored in China as of July 2023. Take this with a grain of salt, as the limited exception only applies to creators who benefit financially from their content.
ByteDance’s Two Options
If H.R. 7521 is also approved by the Senate and President Biden, the bill would take a two-pronged approach:
- Forced Divestiture: This option requires ByteDance to sell its US operations to a separate group within a strict six-month timeframe.
- A Nationwide Ban: If the sale isn't finalized within this period, the app faces a complete ban from operating in the US.
A Ban’s Impact on Businesses
A ban on TikTok would undoubtedly significantly impact any business with a presence on the platform. Here's how a ban could potentially play out:
- Limited Reach: With millions of active users, TikTok offers a vast potential audience for businesses. A ban would significantly restrict businesses' ability to connect with these users, potentially stalling their social media marketing in its tracks.
- Marketing Disruption & Wasted Efforts: Businesses that have poured resources into cultivating a follower base through engaging TikTok content will see those efforts go to waste. If the platform disappears, this disruption could significantly dampen their marketing strategies.
- Increased Competition: The remaining social media platforms would likely experience a surge in user activity and content creation following a ban. This would lead to intensified competition for user attention, making it harder for businesses to stand out from the crowd.
Marketing Lessons from Abroad
Several countries, specifically India, have already banned TikTok for different reasons. These bans offer valuable insights into how users and businesses might adapt if the US takes a similar approach:
- Shift to Existing Platforms: Users may migrate to existing platforms offering similar short-form video features, such as Instagram Reels and YouTube Shorts. Businesses would likely follow suit to maintain audience reach.
- Rise of New Platforms: A TikTok ban could create fertile ground that empowers entirely new platforms (that specialize in short-form video) to sprout! However, businesses and marketers must stay vigilant and adapt to these new platforms.
- Evolving User Behavior: Users may adapt their existing social media platforms to use the same formats as they did on TikTok. But with this change, businesses must keep up with their audiences’ evolving behavior to adjust their content creation strategies.
Build a Resilient Social Media Strategy
Given the uncertain future, businesses must be proactive and develop a plan B and C if or when TikTok will be banned by:
- Diversifying Their Social Media Presence: Don't put all your eggs in one basket. Maintain a strong presence across multiple platforms to mitigate the impact of a ban or disruption.
- Building Brand Loyalty: Focus on building strong brand loyalty with your customers so you can drive traffic to your website. A loyal customer base is more likely to move over to another platform if necessary.
- Exploring Alternative Platforms: Research and experiment with alternative platforms that prioritize short-form videos. This will help you prepare for a potential shift and identify new ways to reach the same audience.
Rising Short-Form Successors
However, H.R. 7521 could strengthen the dominance of existing social media giants like Meta. These platforms would likely benefit from a surge in activity following a TikTok ban, giving them even more control over America’s social media landscape. Here are some existing and potential rising platforms businesses should keep an eye on:
- Instagram Reels: Already a popular feature within Instagram, Reels offers similar short-form video creation and sharing functionalities as TikTok. Many businesses are already leveraging Reels to reach their audience.
- YouTube Shorts: Alphabet (Google & YouTube’s parent company) has also entered the short-form video game with YouTube Shorts. This platform offers the potential to reach a massive audience already familiar with the YouTube ecosystem. A simple rebranding to “Shorts” could create a brand-new social media juggernaut.
- New Entrants: A TikTok ban could create fertile ground for entirely new platforms focusing on short-form video content. Plus, innovative new startups and intrapreneurs will incorporate new AI-enhanced technologies to capture their users’ attention. Or hey, maybe Elon will just come up with the next big thing...
Potential Ramifications Beyond the Ban
A TikTok ban wouldn't just impact businesses. Here are some potential long-term consequences to consider:
- Shifting Social Media Landscape: A ban could lead to increased regulation of foreign-owned social media platforms in the US. This could create a complex, potentially restrictive environment for social media companies.
- Global Domino Effect: Other countries might follow suit and implement similar bans on Chinese-owned platforms. This could lead to a more fragmented global social media landscape.
- Social Demand Endures: Regardless of the platform, the demand for social media and user-generated content will remain. Users will find new ways to connect and share content, even if familiar platforms disappear.
When Will TikTok Be Banned? Time Only Knows
At True North Technologies, we understand the challenges businesses face in managing their social media presence. We can partner with you to develop comprehensive social media strategies that can help you:
- Diversify Your Social Media Presence
- Build Brand Loyalty
- Stay Informed
Don't wait, contact our superstars today, and let's discuss your social media marketing needs. Take a proactive approach and help your business thrive in our ever-changing social media landscape.
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