TikTok Advertisers Brace for App Ban, Shifting Budgets to Instagram and YouTube

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TikTok Advertisers Brace for App Ban, Shifting Budgets to Instagram and YouTube
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Advertisers using TikTok as a major marketing platform are scrambling to create contingency plans as a potential US ban looms. A deadline of January 19th could see TikTok, used by 170 million Americans, shut down on national security grounds. This has sparked a 'hair on fire' moment in the ad world as marketers prepare to shift billions in annual ad spending to platforms like Instagram and YouTube Shorts.

The US flag and the TikTok logo seen through broken glass are seen in this illustration taken Jan 16, 2025. NEW YORK: Advertisers reliant on TikTok as a major digital marketing tool rushed to prepare contingency plans this week, as the realisation dawned on many that the

If a ban does occur, more than US$11 billion in annual US ad investment would be up for grabs, according to a forecast from marketing group WARC Media. Even as the ban approached, the company continued to pitch advertisers on new features, like a tool launching in test form on Thursday that would make it easier to create, modify and add advertisements in bulk, according to an email from this week described to Reuters.

“Here’s how to download your TikTok data so you don’t lose literally everything you’ve had from the past five years,” said Maria Slate, grimacing, as the words “it’s fine I’m fine” displayed over her head. TikTok has become a powerful tool for advertisers looking to reach young Americans in particular in recent years, growing to 20 per cent of US social media ad spending from only 2 per cent in 2020, its first full year of operation in the United States, Guideline.ai said.

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