As TikTok faces a possible U.S. ban for national security reasons, with CEO Shou Zi Chew testifying before Congress this week, analysts suggest advertisers explore other platforms to reach their audiences.
“But there is no need for immediate action just yet,” said Insider Intelligence analyst, Jasmine Enberg.
The U.S. accounts for roughly half of TikTok’s worldwide ad revenues, per Insider Intelligence estimates, so the platform has a strong incentive to reach an agreement with the U.S. government to avoid a ban. According to data from Pathmatics, the top 1,000 U.S. advertisers boosted their spending on the video platform by 66% to $467 million from September to October 2022.
“It’s always prudent to have a contingency plan and not to be over-invested or reliant on a single platform,” said Joshua Lowcock, global chief media officer at UM Media, which is avoiding pre-emptive changes to in-market activity until an executive order or law is passed.
Read more in Adweek.