TikTok has been fighting to put off the US sell-off or ban bill for quite a while now. They even sued the government for that.
However, with the sell-off or ban bill still in place, TikTok is struggling in the US market. With this, the app could be forced to be removed from the US market as of January next year. With this in mind, the advertisers are already considering their options, according to the new insights.
Adweek reported last week that TikTok ad spending declined in both April and May. And an insight from MediaRadar says that four of the platform’s biggest spending advertisers have significantly reduced their TikTok ads focus in recent months.
Here are some of the companies that have reduced their ad spending on TikTok. Target has reduced its TikTok ad spending by 30% and DoorDash by 25%. While Bayer increased their spending by 20% Procter & Gamble also increased their ad spending by 10%.
For starters, if the ban remains in place and TikTok exits the US market, then the big companies would have to look elsewhere for the marketing. That is why many of the big brands are already making the switch and shifting away from TikTok.
And increasing your reliance on a platform that may soon be gone could be a problem for big brands. However, TikTok still is one of the most popular platforms in the US and brands should leverage it to promote their products.
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