TikTok advertisers stick by the app amid threat of US ban
Advertisers are committed to continue spending on TikTok due to its immense popularity with users despite threats of a potential ban in the US over national security concerns, ad experts said, Azernews reports citing Al Arabiya.
The steadfastness comes as TikTok, which is owned by Chinese tech firm ByteDance, is fighting to prevent a ban in the US after lawmakers introduced a bill that would grant President Joe Biden’s administration authority to ban apps that pose security risks. The short-form video app has already been banned from government-issued phones in multiple countries.
TikTok is set to host a presentation for advertisers on Thursday evening in New York as part of NewFronts, an annual week of events where social media and streaming video platforms reveal new content and features for marketers.
Despite the concerns about its Chinese ownership, TikTok’s ad business is poised to grow 36 percent to $6.83 billion this year, according to research firm Insider Intelligence.
Ryan Detert, chief executive of Influential, an influencer marketing company, said that of the firm’s clients “none are saying ‘don’t spend money on TikTok,’” he said.
“There’s no contagion that we’re seeing,” he added. Influential has worked with brands including Pepsi and the NFL.
Two media buyers at two different major ad agencies told Reuters that Washington’s scrutiny over the app had yet to impact their clients’ plans on TikTok. The two buyers spoke on condition of anonymity to discuss relationships with TikTok.
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