TikTok Advertisers Commit to Continue Spending on App Despite Threat of US Ban

 TikTok will host an advertiser presentation on Thursday evening in New York.

The resoluteness comes as ByteDance, a Chinese tech company that owns TikTok, fights to avoid a ban in the United States following the introduction of a bill by legislators that would give President Joe Biden’s administration the authority to outlaw applications that pose security risks. In numerous nations, the short-form video app has already been outlawed on phones that are provided by the government.

Despite threats of a potential ban in the US due to national security concerns, advertisers are committed to continuing to spend on TikTok, according to advertising experts.

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As part of NewFronts, an annual week of events where social media and streaming video platforms reveal new content and features for marketers, TikTok will host a presentation for advertisers on Thursday night in New York.

Despite worries about its Chinese ownership, research firm Insider Intelligence predicts TikTok’s ad revenue will increase by 36% this year to $6.83 billion (roughly Rs. 55,800 crore).

According to Ryan Detert, CEO of Influential, an influencer marketing company, “none of the clients are saying ‘don’t spend money on TikTok,’” he said.

No contagion is being observed, he continued. The NFL and Pepsi are just two of the brands that Influential has worked with.

Two media buyers at two different sizable ad agencies told Reuters that their clients’ plans for using TikTok had not yet been affected by Washington’s scrutiny of the app. The two buyers discussed their interactions with TikTok under the condition of anonymity.

TikTok will reveal a new ad format at its presentation on Thursday. This format will let brands place ads next to content from publishers like BuzzFeed, Dotdash Meredith, and NBCUniversal and will give those publishers a 50% cut of the ad revenue.

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“TikTok is irreplaceable unless and until (advertisers) have to replace it,” declared Mark DiMassimo, founder of the creative firm DiMassimo Goldstein, which has worked with companies like Hello Fresh and Samsung.

The threat of a U.S. ban, however, was acknowledged by a number of media buyers as the “elephant in the room” during the advertiser presentation.

The chief of U.S. trust and safety at TikTok announced on Tuesday that he would leave the company the following week, depriving the app of a crucial executive who oversaw content moderation and the creation of safety tools for the division that housed U.S. user data.

According to Stephani Estes, chief media officer at digital marketing firm Goodway Group, “there’s a lot of uncertainty combined with uncertainty in general about the economic situation.” “You have to think about the possibilities.”

According to TikTok, it is dealing with advertiser concerns “head on in an open, fact-based and ongoing dialogue.”