So, What’s the Deal with TikTok?

TikTok has grown to be one of the most potent platforms for users, companies, and content creators globally. But, the platform is now facing a pretty big obstacle: finding a buyer in the United States. When the deadline came around, many users were shocked that the app actually went down – luckily for just a few hours. But, is TikTok back for good? Should you continue investing your time and effort into a TikTok strategy?  We’ll make the complex details simple so you can confidently strategize for your brand. 

TikTok Ban Notification

What’s Going On With TikTok’s Search for a U.S. Buyer?

With a reason to be worried about data privacy and national security, U.S. politicians and regulatory agencies have been closely examining TikTok, which is owned by the Chinese business ByteDance. As a result, in 2020, former President Donald Trump issued an executive order requiring TikTok to sell its U.S. business to an American corporation. The main objective was to guarantee that American users’ data stays safe and out of the hands of the Chinese authorities. 

Since then, the future of TikTok in the US has been unclear. What really surprises us is that although ByteDance has been negotiating with possible purchasers, no agreement has been reached. There are some recognizable names on the list of buyers that have expressed interest, including: Elon Musk, MrBeast (aka Jimmy Donaldson), Kevin O’Leary, Frank McCourt and Larry Ellison (who happens to be the current co-founder of the app). 

What’s the concern about data privacy?

An important factor in maintaining TikTok’s operations in the United States was the executive order issued by former President Trump. The order (at the time) stated that ByteDance would be banned unless it sold TikTok’s U.S. assets to a domestic buyer. 

This prompted a larger discussion about how the government should regulate tech companies that are owned by foreigner, in an effort to protect American data and privacy. With access to apps across the globe, the fundamental issues with data security are still present with or without TikTok. 

TikTok risks a possible $1.4 billion penalty

After hearing about a $5,000 fine per user, we definitely understood why TikTok was eager to find a solution. The potential $1.4 billion fine is a result of claims that TikTok violated U.S. regulations by improperly handling user data. Using TikTok to set an example, this type of fine would set the standard for how other foreign-owned apps are handled in the US market.

The unpredictability of TikTok poses natural concerns for brands and marketers: Should we keep spending money on TikTok? If the platform is restricted or outlawed, what other options are there? It’s important to be proactive and “don’t put all your eggs in one basket” (That means you too, TikTok Creators!). Publishing content on a variety of platforms helps draw in a wider audience. And, it helps to protect your brand if one platform were to shut down – a win, win!

Final Thoughts: TikTok’s Future and Your Strategy

Don’t give up on TikTok just yet! While the app cannot be downloaded by new users, existing users can still access the platform and use its features. Continue to post engaging content that encourages your followers to connect with you on other social media platforms; like YouTube or Instagram.  Our goal at Adapting Social is to support brands in thriving in the rapidly changing digital market. If you need help modifying your marketing approach to adapt to the ever-changing world of social media, let’s get in touch.

Megan Gianvito

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Megan Gianvito

So, What’s the Deal with TikTok?

TikTok has grown to be one of the most potent platforms for users, companies, and content creators globally. But, the platform is now facing a pretty big obstacle: finding

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