2024 RECAP

In early 2024, unimpressed by the concessions and progress that TikTok had seemed to make regarding data storage and protection,  the U.S. House of Representatives overwhelmingly passed a bill with a 326 to 65 vote that could force the app owner, ByteDance, to sell TikTok to a non-Chinese owner within six months or face a comprehensive ban within the United States. The bill was expected to face increased opposition in the Senate, and the expectations were correct. The bill stalled out. 

Fast forward to late April when the TikTok ban was tied into a high-priority foreign aid bill where it passed the U.S. Senate with an overwhelming majority with bipartisan support. Within 24 hours the bill was signed into law by President Biden on April 24th, 2024, giving ByeDance a deadline of January 19, 2025, to sell TikTok. There is a provisional 90-day extension period that may be granted if serious progress is shown. 

DECEMBER APPEAL

On December 6, the federal appeals court unanimously rejected TikTok’s legal challenges regarding the ban, ruling it constitutional. However, ByteDance has vehemently voiced that it has no plans to sell. In response, the company brought its appeal to the Supreme Court and on December 11, requested the U.S. appeals court temporarily halt the January 19 deadline due to the potential review.

ByteDance relayed that President-elect Donald Trump, who had previously attempted to ban the platform during his time in office but has voiced his change in stance on the subject, has vowed to prevent the ban, which is set to go into effect prior to his inauguration. The company stated in its request the incoming administration’s position may make a Supreme Court hearing unnecessary. It was requested that the court act on their petition by December 16. 

WHAT DOES THIS MEAN?

As the impending ban reaches the final one-month stretch before going into effect, we will likely continue to see an aggressive push to delay that deadline. Based on the likelihood of the Supreme Court reviewing the case, there is a strong possibility of that happening.

However, continuing to plan for an impending ban may be a good course of action to have in the back pocket of advertisers in the case of the appeal being rejected. Having a set plan in place will give advertisers a jump on competition as the audience – and ad dollars – shift to other platforms. Below details how advertisers can prepare if there is a need for quick action against a change in strategy.

• Explore ways to maximize presence on other channels. Your audience may be migrating, but they are still present. With TikTok no longer on the market, surveys show the majority of users plan to migrate to other platforms like Instagram, and the looming ban has resulted in boosted stocks for platforms like Meta, Snapchat, and YouTube over the last several months. As other channels look at how they can fill the TikTok-sized gap in the social media landscape, now is the time to investigate how your audience engagement on platforms is shifting and how you can continue to leverage your short-form content to drive performance on other platforms.

• Plan for a shift in ad spend. Whether or not the ban goes through is up in the air, but having a solidified plan, especially with the looming holiday season approaching, is key to staying ahead of the competition moving into the new year. Review your media strategy, take a look at current content and audience, and find what makes sense for your brand to continue maximizing performance.

• Continue to monitor news updates as they roll in. Stay up-to-date with where the case sits in the court system. Oodle will be continuing to update the story as this moves along, so check in here for the latest. If you are continuing to drive high performance on the platform, there is no reason to take action against shifting away from TikTok quite yet.  There is no sign of a decline in ad spend from advertisers, and users have not shown a sign of decreased usage of the platform. Utilize updates in the case to make an informed decision once it becomes necessary.