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How is the Potential TikTok Ban Going to Affect Business

Have you heard about the potential TikTok ban in the US? Legislation was recently passed in the US stating that TikTok must be sold to another company or become banned in the US. The parent company—Chinese-owned ByteDance—now faces a complex legal battle that is likely to drag out. Now, it is easy to assume that this is an issue that will not affect UK businesses, but this is not necessarily true. While it will certainly impact US brands more, you might find that it has a negative impact on many companies in the UK. This post will explore what the ban might mean for businesses. 

How is the Potential TikTok Ban Going to Affect Business

A Social Media Juggernaut

You do not need to be a digital marketing guru to recognise the impact that TikTok has had in the last few years. TikTok has over 1 billion monthly active users globally, making it an incredibly effective marketing platform for brands of all sizes and in all industries. The growing trend of short-form video marketing is largely driven by the popularity of TikTok, particularly among younger generations. 


Loss Of American Audience

So, what might the ban mean for UK businesses? One of the primary concerns will be the loss of an American audience. These days, global markets are interconnected, and many businesses in the UK target US-based consumers. A ban on TikTok in the US could make it a lot more challenging for UK businesses to engage a US audience, especially those operating in industries such as fashion, ecommerce, tech, and beauty. 


Of course, there are other platforms that businesses can use to reach a US audience, but TikTok is the number one choice for younger demographics. Additionally, this means brands may face an increase in marketing costs and have to adapt their social marketing strategy to suit an alternative platform. 



Loss Of US Influencers

Influencer marketing is another massive trend in the digital marketing world in recent times, and TikTok has been at the heart of this. Influencer marketing is particularly prevalent in the US, which is one of the biggest consumer bases, so the potential ban is sending shockwaves through the influencer industry. Any UK business with US-based influencers will want to keep a close eye on developments as the ban would require significant adjustments to the marketing strategy to be made. 


What Can UK Businesses Do?

So, what can UK businesses do? While this is a legal battle that will rumble on for some time, it is important to take action now in case the ban does go through. Obviously, diversifying social media presence is worthwhile, with an increased focus on other platforms. Brands should also look to partner with UK-based influencers or US influencers with a strong presence on other social media channels. 


The potential TikTok could have a seismic impact on businesses in many industries. It is not just as US-issue either, so UK-based businesses need to be intelligent and proactive when it comes to finding alternative ways to engage its target audience.


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