TikTok will be banned in the US on 19 January, unless the app gets a last-minute reprieve to prevent a nationwide shutdown.
Many small businesses rely on TikTok for marketing opportunities. So what might the ban mean for them?
“A TikTok ban could disrupt marketing strategies for businesses that rely on its algorithm and viral trends to reach their target markets, forcing a shift to less effective channels,” marketing professor Ayalla Ruvio from Michigan State University told the Independent.
This could lead to “significant economic losses” for small businesses and influencers, the professor said.
Why is the US banning TikTok?
The US is concerned that China could collect data from American users and pose a national security threat. President Joe Biden signed bipartisan legislation calling for a ban in April 2024.
The US government is giving TikTok’s parent company, ByteDance, the opportunity to transfer ownership and operation of the app to an American-based entity.
There are a number of ideas in play that might prevent the ban or extend the deadline for a sale. US Senator Ed Markey proposed a bill giving ByteDance 270 more days to sell the app to an American owner.
President-elect Donald Trump is reportedly considering an executive order that would prevent the law from coming into force. He’s asked the Supreme Court to pause the ban so he can work out a deal when he gets into the White House on 20 January.
What will happen if TikTok is banned?
If the ban goes through, the government will likely tell app stores, such as the Google Play Store and Apple’s App Store, to make the TikTok app unavailable for download in the US.
While people with the app already on their phones will still be able to use it in the short term, it will soon become unusable as users won’t be able to access new updates. This will also make the app more unsafe, as preventing security updates will put millions of devices at risk of being hacked.
Users could potentially find a way around the ban using a VPN to make it look as though they’re based in another country, but this method comes with its own security risks and certainly isn’t foolproof.
What will the TikTok ban mean for business users?
This could put 7 million US businesses in a difficult position. The way the app presents videos and user preference for genuine content has allowed many small businesses to build a following with limited budgets and sell products on TikTok Shop. Tens of thousands of TikTok influencers will lose out on their main platform too.
Even UK businesses and influencers that need American eyes on their content will feel the loss of 170 million users in the US. American users spent 51 minutes per day on the app in 2024.
While we’re not yet sure whether the ban will happen, many businesses are shifting more of their marketing to Instagram Reels, YouTube Shorts, and Snapchat.
What is RedNote?
Over the last week, TikTok users have started migrating en-masse to a surprising alternative – a popular Chinese social media platform called Xiaohongshu, or RedNote in English.
The app quickly headed to the top spot on the US Apple App Store, and Chinese users have been very welcoming to US users, seeing it as an opportunity for cultural exchange.
The app is more similar to Instagram or Pinterest than TikTok, and originally focused on travel, makeup, fashion, and shopping. Users can post short videos, live chat, call each other, and buy products from through the app. It currently has 300 million active users.
Is RedNote safe?
Like TikTok, RedNote gathers a lot of user data. This includes sensitive information such as your location via IP address, as well as your browsing habits. Chinese privacy laws let RedNote share this data with third-party service providers or government authorities.
The app’s terms and conditions are also in Mandarin, making it difficult for English speakers to understand what they’re consenting to.
It’s not clear what opportunities RedNote will offer to US influencers and businesses if TikTok is banned.
The migration has been led by ordinary people frustrated at their government’s plans for TikTok, rather than businesses identifying a new opportunity to expand their reach.
What do you think about the US TikTok ban? Let us know in the comments.
More social media and marketing guides for small businesses:
- How to write a marketing plan for your small business
- How to make money on YouTube – a simple guide
- Best tools for social media management – compared for small businesses
- How much business insurance do I need?
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