TikTok has been making headlines ever since it was widely spread among gen Z and other demographics. Most of its users are between the ages of 13 to 34. The Addictive app thrives on suggesting hilarious videos we binge on based on our previous views, skips, and scrolls.
TikTok has definitely been the app of the year, but recently, the President of the United States has been on a witch hunt to take down the app. As economic and political tensions rise between The U.S. and China, Trump has insisted on banishing TikTok and WeChat. According to Chinese law, since 2017, companies are obliged to support and cooperate with the country's national intelligence work.
While TikTok’s headquarters are in Beijing, ByteDance argues that its International Tiktok app servers are located within the U.S. and Singapore. At the same time, TikTok's Chinese version Douyin is subject to Chinese law. So, the issue here is that there's a fine line. The question of both versions of the app is whether they’re subject to different laws and obligations depending on the territory.
There’s no incriminating public evidence that either of the apps has shared Americans’ data with the Chinese government. India and Japan have similar retaliation against Chinese apps in recent months. India banned TikTok and around 59 other Chinese apps due to data privacy concerns. When users install the video-sharing app, they grant several permissions for the app to access their phone’s camera, microphone, and access to check if there's an internet connection, among other actions.
Creators are enraged after the news started to spread. Most influencers have already referred their followers to their other social outlets if the ban was to occur. Famous TikTokers earn tens of thousands of dollars per month, and now their income could be at risk.
According to Business Insider, Trump has given ByteDance a deadline to find a buyer. Otherwise, the ban will take effect after September 15th of this year. Microsoft has publicly expressed its intentions to acquire Tiktok. Since its site, LinkedIn has taken a plum and has y slowed down its growth. Meanwhile, the triple-digit acceleration of TikTok's user base is undoubtedly appealing to Microsoft.
TikTok is a privately owned company, so there’s no official public valuation for the app. However, ByteDance executives told Reuters that they estimated the app to be valued at around 50billion. We don’t know what the future withholds for the app, but users and creators will not let go of the app without a fight.
Facebook has launched Instagram Reels to take advantage of TikTok’s possible ban. Instagram has implemented a similar style of algorithm. On TikTok, it doesn't matter at the same level how many followers you have. However, the number of views you get, compared to Instagram, so here's where TikTok still has higher chances of capturing new content creators into going viral. The social outlet spectrum is amplifying, but there's something about TikTok that has captured the attention of users and brands. It might be its ephemeral essence; who knows?
Brands on TikTok
TikTok for businesses hasn't even existed for that long, but branded content within the app has gained significant traction. Companies are still testing the waters and are being pleasantly surprised by the outcome. Content on TikTok has a different tone to it compared to other social platforms. It's less serious, and users love it!
Brands are still willing to face the risk of a TikTok ban; it's still worth it. TikTok's vibrant community makes the app the ideal playground for brands. The engagement and interaction of users on TikTok don't match any other apps, and advertisers and Brand Managers know this.
According to Reuters, the app has been preparing and communicating with advertisers what will happen in case TikTok gets banned. They said they would issue refunds and honor their contracts. Blake Chandlee, TikTok’s vice president for global business solutions, said, "We're committed to being a trusted partner to brands, agencies, and marketers as we build TikTok for the long term. TikTok will be here for many years to come." Executives from the company remain confident that the app won't be wiped out of American territory despite serial allegations.
Katie Puris, TikTok’s Managing Director, was Interviewed by Ad Age's President Josh Golden last Friday, August 7th. They spoke on the current circumstances and the challenges the company is facing. Katie also mentioned that they've introduced a billion-dollar creator fund to support users who provide valuable and engaging content and contribute to the app's mind-blowing success.
The company has set transparency centers, and they've repeatedly remarked that TikTok hasn't and wouldn't share users' information with the Chinese government. Brands have taken a leap of faith and have invested significant parts of their marketing budget into the platform.
The diversity of users has made it appealing to a broader audience compared to other social media platforms. Since the U.S. was severely hit by COVID, the crowd has found an outlet to express themselves in a care-free way, making the masses laugh and forget a bit about what's going out there. Culture is created every day on TikTok; these videos harness our interconnectivity and let us gather remotely by participating in hilarious challenges.
According to the WSJ, Fewer than 10% of clients at one top ad-agency holding company are spending on the app, TikTok’s content is made to be consumed immediately. It doesn’t take long to make a significant impact. The TikTok app is currently one of the most active among mobile users, so we don’t think TikTok Will be disappearing any time soon.
Brands must ensure their content remains authentic, organic, and fun. Introduce comedy into branded campaigns and challenges that will remove the seriousness and "salesy" element of ads. User-generated content makes branded content seem relatable and genuine, and consumers are definitely buying it.
CPG brands have conquered the art of advertising on social platforms. Today it's not strange to see our favorite consumer products starring in hilarious challenges and ads that entertain the hell out of us.
Branded content is not new to users nor companies. To advertise on TikTok is ideal if you’re a Brand Manager looking to expand your brand’s awareness. Create engaging campaigns that show off your products, through CGI’s to make them more appealing. Incorporate techniques into your productions and make those 15 second-videos worth your consumer’s while!
Dare to be bold and experiment with creative content like never before. Brands like Nike, Chipotle, Skittles, Fenty Beauty, Pepsi, and Universal Pictures have already dipped into the TikTok world, what are you waiting for?
This year we produced our first TikTok videos for Veet and Clearasil. Our creatives and video specialists combined video techniques, live production, and CGIs to deliver fun and organic pieces that could live on the brands’ social profiles.
In 121, we are always ready for the next challenge. We deliver first-class content with our signature speed. We understand that brands need a responsive partner that can produce content faster than anyone else. Learn more about our services and launch your next viral campaign with us. You can always count on us. Our purpose is to make you shine!
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Last Edited on May 25, 2018