Looming uncertainty over a potential U.S. TikTok ban is not putting off advertisers from committing ad spend to the platform. In fact, agencies are pledging a year-over-year increase in ad dollars in 2025.

One agency executive, speaking anonymously to protect industry relations, plans to increase the agency’s TikTok spend by 20%–30% this year. DigiShopGirl Media will increase spend by between 15%–18% over the year, according to CEO Katya Constantine. At VML, clients are boosting their yearly influencer budgets on TikTok by 30-50%. Some brands are committing for the entire year, while others are focusing on the first half of the year or maintaining a steady stream of ad-hoc campaigns throughout, according to Mae Karwowski, CEO of Obviously, VML’s influencer marketing agency.

U.S. ad spend on TikTok is projected to surge 57% YoY in the first two months of 2025, according to ad data firm Guideline, based on forward booking data from agency partners for upcoming campaigns. And TikTok has been growing: Since 2020, TikTok has posted an annual compound growth rate (CAGR) of 118%, rising from 2% to 20% of total U.S. social ad spend, per Guideline.

“TikTok is still pushing agencies and brands to commit to increased YoY spend through up-front deals, and they are still selling up-front media placements well into 2025,” the first agency executive said. “TikTok has confirmed in writing, although not in contracts, that they will honor refunds for reserved inventory if the app is shut down.”

Despite regulatory uncertainty, TikTok’s ad revenue trajectory highlights the platform’s resilience. Advertisers are making commitments for 2025, drawn by TikTok’s ability to drive engagement and sales, especially among younger audiences.

“A lot of it is net new created ad budgets towards TikTok because it’s created a pocket of success within their business,” the first agency executive said.

The looming U.S. TikTok ban, set for January 19, mandates app stores like Google and Apple to remove TikTok. However, the bill does not specify a timeline for fully shutting down the app itself, creating a “fragile couple of weeks for agencies and advertisers,” the executive notes. Without app store access, the app will not receive updates and will eventually become so buggy to be unusable.

As brands navigate uncertainty, many are also hedging their bets with contingency plans. Some aren’t fully convinced by TikTok’s lack of refund commitments in contracts, which adds to the hesitancy to commit to upfront ad inventory.

Pagine: 1 2