5 Key Implications for Ads, Creators, and Businesses

With a potential ban on TikTok set to take effect on January 19 in the United States, the ripple effects It will be felt far beyond its millions of users in the country, causing major disruptions to the wider digital landscape.

In April last year, Congress passed a law banning “apps controlled by foreign adversaries” from app stores, which could force TikTok’s Chinese parent, ByteDance, to sell the app in the country or face a US ban. Amid growing national security concerns, the legislation has sparked debates about censorship, the First Amendment, and potential ramifications for the broader digital ecosystem.

Meanwhile, President-elect Donald Trump, who initially started talking about banning the app in 2020, reverse route and called for a break on politics last week, seeking time to reassess its implications. The Supreme Court will hear the arguments in the case on January 10.

Beyond the political ramifications, a ban also alters the global social media ecosystem.

TikTok’s influence has sparked innovation in short-form video, leading to changes in user behavior and spreading copy features from competitors, such as Instagram Reels and YouTube Shorts. If TikTok is removed from the US market, rivals could see a boost, but it could also hinder the creative and cultural momentum that the video platform has catalyzed.

“TikTok is really the last app that has emerged and made its way into the mainstream and stuck,” said Jasmine Enberg, vp principal analyst, Emarketer. “The loss of TikTok will cause major disruption to the digital landscape, having a ripple effect across media, marketing and ecommerce.”

Here are 5 critical implications of a TikTok ban in the US

Performance ad budgets are recovered

For performance ads, reallocating TikTok’s ad spend to other platforms is not a simple move. Clients want to make sure they’re getting the same return on ad spend and results before shifting their budget elsewhere, according to Gartner vp analyst Eric Schmitt.

“It’s not a given that money just flows into other paid media channels,” Schmitt said. “Measurement challenges are greater than ever, with clients struggling to gain visibility into the business results of their ad spend.”