By Paul Henry III
TikTok, which Chinese technology firm ByteDance owns, faces the threat of a total ban in the US, leading to the question of what problems this potential ban will cause for businesses that rely on TikTok. Before discussing what this means for these businesses, let’s examine the logistics of what is happening in Washington and what progress lawmakers have made on banning the platform.
The Ban Is Threatening Small Businesses’ Revenue Streams
The US has been voting to ban the vastly popular social media platform, which has 170 million US users, due to national security concerns. However, there is much more to it than people not being able to watch their favorite creators. Around 7 million small businesses rely on the social media platform to sell products and drive growth. In fact, it drove $15 billion in revenue for US small businesses in 2023 alone.
Lawmakers have brought up concerns about the platform being owned by ByteDance, and that it is bound to the Chinese government, which could demand access to the data of US users whenever it wants. Due to these concerns, Rep. Cathy McMorrua said, “We have given TikTok a clear choice.” That choice is to separate from their parent company, ByteDance, and be able to remain operational in the US, or they will face the consequences, which is a ban on the platform in the United States.
TikTok users and creators are in uproar over the platform’s impending ban. From making videos to calling senators, they are doing everything in their power to stop the ban discussion.
Most Representatives Voted To Ban TikTok
Specifically, the progress that has already been made on the ban has been voted on in the House of Representatives, with 197 Republicans voting for it and 15 against it. On the Democratic side, 155 Democrats voted for and 50 against. A vote of 352 for and only 65 against means that the bill was passed, and unless TikTok divests from ByteDance, the application will be removed from the App Store. So the clock for TikTok to decide on what to do is slowly ticking down.
As part of the political discourse surrounding the potential ban on TikTok, it’s important to understand what this means for the 7 million small businesses and other users that rely on the platform as a main source of marketing. The ease of use and ability to get millions of views and thousands of followers off of a single video just by posting and letting the algorithm take care of the rest make it an ideal platform unlike any other for marketing. With platforms such as YouTube and Instagram, it can take years to grow a following and get a lot of impressions.
TikTok Is Crucial For Many Small Businesses
39% of small businesses say that TikTok is critical to their business’s existence, and 69% say that the platform has led to increased sales in the last year. Creators such as Tori Dunlap, who goes by @herfirst100k on TikTok and has 2.4 million followers, said that the banning of the platform would be devastating for content creators who use the service to make money because we are living in a world where it’s impossible to have one traditional source of income. More than half of small retailers and restaurants say that it is extremely valuable to their overall marketing performance.
One example of a small business success story that has mainly used the platform for marketing is Brand Pierre. This brand, created by Pierce Woodward, which currently has 1.6 million followers and 60 million likes, makes fashionable rings out of new and vintage spoons, creating unique designs. It has garnered the attention of celebrities such as Benny Blanco and D D’Amelio. What started out as a hobby for Pierce to do during COVID has turned into a thriving business all because of TikTok. When turning this hobby into a business, after the immense growth of his account on the platform, he grossed six figures in the first three months and made twenty thousand rings in his first year.
Where Will Businesses Go If The Ban Goes Into Effect?
Generally speaking, a ban on the platform will lead to many small businesses losing a large revenue stream and a large potential for job loss. So, where will businesses divert their marketing efforts? Most likely, they will move to focus on other platforms that have features similar to those of TikTok, such as Instagram or Youtube. The difference is the algorithm of TikTok compared to other platforms. Julian McAuley, a professor of computer science at the University of California said that what sets TikTok apart is that they have “fantastic volumes of data, highly engaged users, and a setting where users are amenable to consuming algorithmically recommended content.”
What Should You Do If You’re A Small Business That Relies On TikTok?
If you’re a small business heavily relying on TikTok, the best suggestion is to diversify your marketing efforts to other platforms. This is to reduce your reliance on any single platform, so moving to different spaces, such as Instagram and YouTube, will help. You will also be able to repost your content from TikTok and post it on these platforms because they have similar features. This is where the Martin Hall Agency comes in handy. We will be able to help any business diversify their social media content and make the transition to using other platforms effortlessly.
For further information about and to dive deeper into this topic, check out the additional links below:
TikTok Statistics: The Impact of TikTok on Business and Social Media
The House passed a TikTok ban bill. But is the app really a national security threat?
The grim reality of banning TikTok
TikTok Crackdown Shifts Into Overdrive, With Sale or Shutdown on Table
Leave a Reply