TikTok shut down in the US for less than a day on the 19 January, following threats of a full ban from the US government.
US President Donald Trump is expected to issue an executive order allowing more time for a deal to be made with TikTok’s parent company ByteDance before the law banning it entirely comes into force. However many users have reported increased censorship (with some users and videos restricted or hidden) and a less sensitive search function now that the app is back online.
Many small businesses rely on TikTok for marketing opportunities. So what might a ban or a change in functionality mean for them?
Why is the US banning TikTok?
The US is concerned that China could collect data from American users and pose a national security threat. Former 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. The US government is also discussing the option of 50/50 Chinese and American ownership of the app.
What will happen if TikTok is banned?
On 19 January, TikTok users attempting to open the app were notified that it wasn’t available.
If TikTok is eventually banned, users could potentially find a way around it 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?
“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.
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.
Many business are shifting more of their marketing to Instagram Reels, YouTube Shorts, and Snapchat.
What is RedNote?
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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