Conversely, if users leave the platform and ad buyers pull ad dollars from TikTok, CPMs become more efficient and auctions would be less competitive, said Johnston.
Meta’s Reels and YouTube Shorts are runner-ups
TikTok remains a key focus for brands, driving performance and boosting influencer marketing efforts alongside brand messaging. Ad spend on TikTok reached $1.2 billion in Q4 2023, 43% more than the $805 million spent during Q1 2023, per MediaRadar.
Brand partners at Tinuiti have increased its investment in TikTok by between 10% and 15% year-over-year for the last two to three years.
However, in the event of a renewed call for a nationwide ban, advertisers are expected to shift their ad dollars to platforms where TikTok’s 170 million active users migrate. Meta’s Reels and YouTube Shorts could emerge as alternatives, according to Johnston.
As a result, creators whose primary audience is on TikTok may find themselves in a difficult position if brands decide to allocate their marketing budgets to creators with larger audiences on other platforms.
At media agency Collective Measures, brands are already testing identical ad units offered by Snap, YouTube Shorts and Reels. According to Lauren Beerling, the agency’s director of performance media, Meta emerges as the top performer, as Reels run across Instagram and Facebook, resulting in higher reach.
“There’s been a lot of hesitancy in the marketplace, even with our clients to use TikTok, because of the ever-growing privacy era,” Beerling said. About 4% to 6% of digital ad spend for 2024 is allocated to TikTok.
“TikTok just keeps a lot more under lock and key. They’re willing to share less about how they’re using data,” she said.
Still, no platform quite works like TikTok with its built-in editing tools and unique algorithm, according to Ryan Enoch, svp and director of strategy at Momentum Worldwide.
“While YouTube can have similar effects, the process to create content is more arduous and relies more on search functionality vs. discoverability. Instagram on the other hand requires quite a bit more strategic thought and creative polish in how to connect with and reach audiences vs. TikTok,” he said.
Call for federal privacy law
A ban on TikTok could lead to more market share for American social media companies despite having nearly the same brand safety and data accessibility issues as TikTok.
Many social media services make their money in part by harvesting user data, and so—to some degree—many of these services present some of the same concerns for misuse of user data as TikTok does, according to Kate Ruane, director of the Center for Democracy and Technology’s Free Expression Project.