January 19 is ready to be the deciding date for the years-long battle round TikTok’s future within the US. ByteDance, TikTok’s Beijing-based mum or dad firm, has till Sunday to promote the app to a US firm, as ordered by the US Justice Division, or face a ban.
With over 170 million customers within the US alone, TikTok is a behemoth—each as a social platform and a hub for commerce, the place customers can seamlessly uncover, buy, and share. So, what does a possible ban imply for small to medium-sized companies (SMBs) using the wave of TikTok’s success?
US TikTok Ban Key Takeaways for SMBs:
Forward of the ban, companies ought to leverage their current TikTok presence.
Adapting to different platforms and diversifying methods might be essential for SMBs to thrive post-TikTok ban.
Study from TikTok wins—genuine and compelling content material retains audiences engaged.
The place Issues Stand
As of this writing, the way forward for accessing TikTok could possibly be determined any day now by the Supreme Courtroom, whereas TikTok is making ready to close off its app for US customers on Sunday.
Here’s a abstract of the timeline:
TikTok has lengthy been the topic of presidency scrutiny as a result of knowledge safety issues. Then-President Trump tried to drive a sale in 2020 and President Biden pushed for laws in 2023.
In March 2024, the Home of Representatives handed the TikTok invoice, forcing ByteDance to divest its stakes or face a nationwide ban, which Biden signed shortly after in April.
After authorized battles between the US federal authorities and TikTok/ByteDance, the Supreme Courtroom’s ruling is more likely to uphold the sale-or-ban regulation.
In line with Reuters, as soon as TikTok shuts off, the ban would apply to new downloads on Apple and Google app shops and current customers might proceed to make use of the app for a while.
We’re keeping track of the state of affairs because it unfolds, however for now, let’s take a more in-depth take a look at the US TikTok ban from a small enterprise perspective.
How Will the TikTok Ban Affect Small Companies?
A small enterprise proprietor talks about how TikTok has helped their enterprise and expresses dismay over the upcoming ban.
Small companies are already bracing for the potential ban taking a chew out of their income. In line with Oxford Economics analysis, over 7 million companies depend on TikTok, and 45% of SMBs take into account the platform vital to their enterprise’s existence.
TikTok’s intuitive algorithm and potential virality are the platform’s key differentiators. SMBs profit from TikTok each instantly, by advertising efforts, or not directly, by publicity. The identical report highlights how TikTok helps companies attain new audiences—73% reported a minimum of reasonable enchancment.
Then, there are the shops—over 31,000—promoting instantly on TikTok Store and catering to roughly 37.8 million US consumers, per Statista knowledge.
On a Sq. Vendor Neighborhood discussion board, one consumer commented {that a} ban can be “brutal” for his or her enterprise. In line with Dina, co-owner of Amityville Apothecary, their store had 260,000 followers on TikTok they usually bought between $40,000 and $60,000 month-to-month on TikTok Store.
Small enterprise proprietor Desiree Hill informed AP Information that TikTok movies of her work as a cell mechanic opened her enterprise as much as new audiences. Ultimately, this recognition helped her set up a brick-and-mortar store with 5 workers. Hill says she is nervous that different platforms don’t have the identical attain as TikTok and that she would “lose a big a part of her enterprise” or the “capacity to develop anymore.”
Learn extra about TikTok Store:
What SMBs Ought to Do
What’s subsequent for small companies which might be depending on TikTok in a single kind or one other? Whether or not the Supreme Courtroom strikes to dam the ban or not, your enterprise should adapt.
Don’t Neglect Your Present TikTok Presence
Whilst you can nonetheless entry TikTok, harness your attain and the information obtainable to you. It could be worthwhile to create posts letting your followers and prospects know the place to succeed in your enterprise—your different social media platforms, on-line retailer/web site, your Google Enterprise Profile, and so on.
Make posts or go reside and share how your enterprise is transitioning by the ban, letting prospects know which merchandise they gained’t have the ability to entry. This is able to additionally maintain engagement regular and assist nudge your present followers to remain related by different platforms. Moreover, obtain your knowledge to maintain a document of your efficiency.
Leverage Present Options
TikTok’s potential for low-cost, viral advertising is especially helpful for small companies. Nonetheless, throughout the digital financial system, a TikTok ban isn’t essentially a useless finish for manufacturers—different platforms, similar to Meta (Fb and Instagram), YouTube, X, and Pinterest, every characteristic their very own strengths, so be ready to diversify your method as you construct re-engagement methods.
And though their algorithms won’t goal audiences the identical approach as TikTok, manufacturers can capitalize on alternatives as these platforms develop them. Meta, for instance, continues to spend money on AI for extra personalization. Instagram is an efficient different for connecting with customers who reply finest to video-based content material. Companies may even leverage boards like Reddit to interact their viewers and goal area of interest communities.
Customers and creators will logically shift to those different platforms, so put together for a surplus of content material on the onset. New platforms, similar to RedNote, are additionally anticipated to crop up within the wake of the ban.
Work With Influencers
Influencer advertising stays a viable technique for manufacturers. As you discover different platforms, tapping into influencers can enhance your attain. Meta, for instance, is teeming with a wide range of influencers with the flexibility to focus on area of interest communities and demographics.
Work with an influencer that finest aligns together with your targets and launch campaigns—whether or not a sponsored put up on X or a giveaway with a micro-influencer on Instagram.
Hold It Natural
As you transition from TikTok advertising, it’s vital to take applicable time to grasp your viewers on varied platforms. Prioritize creating content material that your viewers will resonate and interact with, and work towards consistency. You possibly can finally spend money on extra focused promoting on platforms like Meta to make sure you’re maximizing your price range.
Double Down on E-mail Advertising
E-mail advertising is a tried-and-true technique, particularly for companies with restricted assets. Companies can use each e mail and SMS to mitigate visitors losses from TikTok and keep related with prospects.
With the uncertainty of TikTok and TikTok Store, nurturing and rising your e mail subscriber checklist generally is a dependable software to maintain changing prospects.
Think about AI Options
Synthetic intelligence instruments let companies tailor prospects’ procuring experiences by personalization. For instance, an AI chatbot might make it simple for customers to establish native companies or suggest merchandise based mostly on latest purchases. Implementing an AI resolution for personalization might assist your enterprise turn into much less reliant on TikTok’s algorithms for suggestions.
“The potential TikTok ban is a strong reminder to by no means depend on a single platform for all of your advertising or gross sales wants. As a small enterprise, take this chance to diversify—develop your e mail checklist, make the most of SMS advertising, spend money on search engine optimization, and educate your self on different instruments to increase your attain. Re-engage on Instagram, discover Pinterest, and construct buzz in your model throughout a number of networks to remain resilient and adaptable.”
—Kathleen Rock, Social Media Specialist
What to Anticipate in 2025: US TikTok Ban Ripple Results
In 2023, small companies’ use of TikTok contributed $24 billion in gross home product (GDP) and supported 224,000 jobs, based on Oxford Economics. TikTok’s web promoting income in 2024 was projected to succeed in $11 billion, per Statista knowledge. From an financial standpoint, the stakes are excessive.
The consequences lengthen to companies in different international locations that stand to lose gross sales coming from the US. The BBC stories that some companies have deemed the ban “probably devastating” for UK companies—about 1.5 million working on TikTok. Equally, imported merchandise, similar to cosmetics from Korea and China, must discover their approach to American consumers by totally different means.
Whereas some fear that the ban would set a precedent, a number of international locations have already applied bans. Most notably, India banned TikTok in 2020, forcing 200 million customers into alternate options.
Ceaselessly Requested Questions (FAQs)
These are some questions we’ve lately encountered concerning the US TikTok ban.
What is going to occur to TikTok on Jan nineteenth?
January 19, 2025, is the deadline for ByteDance, TikTok’s mum or dad firm, to promote the app to a US firm or face a nationwide ban. As of this writing, TikTok plans to close off the app on the stated date.
Can I promote my small enterprise on TikTok?
With the destiny of TikTok within the US unsure, small companies ought to leverage different platforms for his or her advertising efforts.
What ought to manufacturers do if TikTok is banned?
Manufacturers ought to diversify their methods—market by different social media platforms, nurture their e mail subscriber lists, and take into account AI for personalization. General, manufacturers ought to proceed to interact prospects with compelling content material that resonates with them.
Backside Line
As customers and types alike await the ultimate phrase on the looming TikTok ban, one factor is obvious—TikTok’s 170-million-strong US base might want to go some place else. For companies which have constructed their followings on the app, that is each a problem and a chance to diversify their methods and authentically join with their audiences. Publish-TikTok, companies might want to adapt shortly to thrive.
