Everything You Need to Know About the Potential TikTok Ban

03/28/2023

TikTok is a short-form video-sharing app geared mostly toward Gen-Z. Content on the platform ranges from cooking videos to funny animal clips to practically anything you could think of. According to Business of Apps, as of January 2023, TikTok had almost two billion monthly active users globally. And this doesn’t even include users from China since the app uses a different name there. As of just last week, TikTok’s CEO, Shou Zi Chew, boasted that TikTok now has 150 million active monthly users in the U.S. alone. But this claim also comes amongst talks over a potential ban of the app. 

TikTok’s Data Security Concerns

The app, while popular, poses privacy and data security practices for one big reason: TikTok’s parent company, ByteDance, has ties to China. Other countries worldwide, including the U.S., have banned the app altogether or restricted its use in certain cases. For example, India placed a ban on not only TikTok but also other Chinese-owned apps like WeChat, and Pakistan banned the app at least four times. While the U.S., Canada, and Taiwan haven’t officially banned the app, government-issued devices only have restricted access to TikTok. However, there isn’t currently any hard proof of these privacy concerns; it’s more of a concern for what China could do with TikTok’s users’ data in the future.
 
To counteract this potential, the U.S. government created the RESTRICT Act. This bipartisan bill, in short, allows the secretary of Commerce to ban apps that pose a risk to U.S. national security. It doesn’t explicitly name TikTok, but it covers companies owned not only by China, but also by Cuba, Iran, North Korea, Russia, and Venezuela. Last week, Chew faced congress to answer questions they had over TikTok's data concerns. Unfortunately, it didn't seem to change the status quo as many representatives didn't seem to know much about how the app works. While this bill exists, U.S. lawmakers, including President Biden, aren’t pushing to ban the app. Instead, they’d much prefer it if a U.S.-owned company acquired ByteDance, removing its ties to China.

How Advertisers Are Responding

Despite the uncertainty about the app’s future, advertisers are sticking with TikTok and are largely unfazed by it. Privacy and data security concerns on social media are nothing new to marketers. Facebook and Instagram’s parent company, Meta, is still a formidable force in the social media market today. Especially for marketers, as Facebook’s ad business has only gotten stronger since. So, it’s safe to say they were able to walk away mostly unscathed from the Facebook and Cambridge Analytica data scandal in 2015. So, with this example in mind, marketers know the privacy issue concerns will eventually die down.

Marketers have experienced this wave of security concerns for social media in the past, only to see it ultimately pass. So, for now, advertisers are sticking with TikTok and keeping their ad spend on the platform. And for marketers who have employed a TikTok-first approach, they’re sticking with it, despite the threat of a ban. TikTok, for better or for worse, delivers droves of the Gen-Z audience, making it an attractive marketing platform. So, as far as advertisers are concerned, TikTok is here to stay.

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