Advertisers are sticking by TikTok and continuing to spend to appear on its platform despite growing tensions about a potential US ban.
Chinese-owned TikTok is currently fighting to stop a ban in the US after the government passed a bill that grants the President the power to block apps that pose a security risk.
The US, and other nations around the globe, have already banned the popular application from government phones.
Despite the threat, TikTok’s advertising business has continued to grow – with predictions that it will increase 36% to $6.83bn this year alone.
“The upside of advertising on TikTok still outweighs any threat of a ban looming, with short-form video ad spend continuing to grow at a significant rate,” Stevie Johnson, founder of marketing agency Disrupt, told Verdict.
During a presentation to advertisers this week, TikTok announced a new advertising format that lets brands place ads next to large-scale publishers. The “premium” publishers, like WWE and BuzzFeed, will get 50% of the collected ad revenue.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Johnson added: “It is by far the most impactful way to reach what traditionally has been a tricky audience in Gen-Z, and with the uptake in the older demographic, advertisers will fall behind unless they continue to utilise it.
“Additionally, other platforms [that] have taken reputational hits in the past, such as Meta, continue to prosper.”
GlobalData is the parent company of Verdict and its sister publications.