How would a TikTok ban impact brands in the US (& worldwide)?

Post updated on the 4th April 2025.

On the 19th January Donald Trump issued an executive order instructing the Attorney General not to take action to enforce the ban on popular social media app TikTok, delaying the action for 75 days.

As the new deadline approaches this weekend (5th April 2025). Currently, we are waiting eagerly to see what politicians and leaders have decided on what to do about the divest-or-ban law they have proposed to ByteDance, the Chinese company that owns the platform. The motivation behind the ban is in relation to fears surrounding privacy concerns, and the alleged sharing of US data with the Chinese government.

But why is the potential ban of TikTok such a significant concern for businesses in the US and worldwide?

Well, the use cases for major social media platforms such as TikTok have evolved over the years, making them not just beneficial but crucial platforms for businesses to boost brand awareness, build stronger connections with their audiences, and attract new potential customers.

In 2023, TikTok drove $14.7 billion in revenue for small and medium sized businesses in the US – and that figure only continues to grow. Without exposure and leveraging the benefits of marketing on these platforms, many of the 7 million businesses on TikTok are at risk of losing customers, and the potential for business growth.

TikTok’s role in digital marketing

TikTok has rapidly become a powerful platform for brands to connect with their target audiences. A significant majority, 81% of users, report discovering new interests and products through TikTok; and with 78.7 million users in the US, TikTok offers a huge potential audience for brands to target through the platform’s diverse marketing methods.

This enormous user base translates into significant marketing opportunities, with key statistics illustrating TikTok’s unique value proposition.

40% of Americans have used TikTok as a search engine

40% of Americans are using the TikTok platform for searching, as they would traditional search engines such as Google or Bing. This figure rises to 64% for Gen Z – with 10% of these users suggesting they even prefer using TikTok for searches to Google.

This search behaviour provides a strong potential for brands to reach and engage huge audiences that are actively looking for information, products, or services. Businesses who optimise their TikTok content and presence can effectively leverage this search-driven engagement to drive visibility, traffic, and sales – particularly amongst younger audiences.

52% of consumers who buy after seeing TikTok ads were only exposed to the ad on TikTok

52% of consumers who purchase after seeing TikTok ads were only exposed to the ad on TikTok. This highlights the platform’s unique ability to reach consumers that may be missed on other channels, enhancing brand visibility, driving engagement, and ultimately, boosting sales among a distinct consumer group. This means TikTok isn’t just an additional platform in a digital marketing mix, it has become an essential one for reaching distinct audiences.

It highlights the importance of tailored TikTok-specific ad campaigns for brands to be able to maximise this exclusive reach. This exclusivity translates to a significant competitive edge for businesses that effectively leverage TikTok’s advertising capabilities.

62% of US TikTok users use the app to look at product reviews or recommendations

TikTok has become a leading platform for product discovery, with 62% of US users turning to the app for reviews and recommendations. This surpasses the product discovery engagement on Instagram (44%), Facebook (37%), and X (29%), highlighting TikTok’s significant influence on purchasing decisions. 74% of US women aged 18 to 49 have also stated that they use the platform for product discovery.

For brands, this highlights that TikTok is more than just an entertainment platform; TikTok’s audience is not only highly engaged, but that they search the platform with active intent to find products and make purchases.

45.5% of U.S. TikTok users are expected to make a purchase on the platform in 2025

Without the ban, in 2025 it is estimated that 45.5% of US TikTok users will make a purchase on the platform. This demonstrates a clear shift towards direct purchasing within the app, moving beyond simple brand awareness.

For brands, this presents an opportunity to capitalise on TikTok’s growing social commerce capabilities, including:

• TikTok shop
• Live shopping features
• Creating shoppable content

This not only allows brands to target high-purchase intent users with quick and seamless ways to shop directly on the TikTok platform, but also gives brands valuable data and insights into consumer behaviour, allowing them to refine their strategies and maximise ROI.

Potential impacts of a TikTok Ban in the US

When you consider the above, it is evident that TikTok has become a crucial tool for businesses to not only expand their audience and reach new customers, but also as a platform where brands can directly sell their products and services.

Banning the platform in the US would cause significant disruptions to business development through impacts to digital marketing strategies:

Loss of access to an engaged user base

Brands would lose access to a major platform with a large, highly engaged audience of over 2 billion users. This loss will result in further declines in sales, leads, and brand visibility, affecting brands of all sizes – but small to medium businesses might see a detrimental impact. Brands with a primarily Gen Z audience are also more likely to feel the impact of this loss.

Loss of social commerce opportunities

The ban would also severely impact social commerce trends. Brands who have invested time and costs into optimising their TikTok shop would see a huge impact, losing the opportunity to leverage this seamless experience to convert the platform’s extensive user base into customers.

Without the app, US brands would also not be able to make use of the platform’s other eCommerce features such as live shopping and in-feed advertising. To accommodate this change brands would need to rapidly pivot their strategies and seek alternative platforms to maintain their online sales channels.

Less means for discovery by new audiences

Losing TikTok’s search functionality, advertising capabilities, and in-app shopping features would further limit product discovery, particularly from potential overseas customers, impacting sales and brand awareness.

Reduced opportunities to work with influencers

Additionally, the ban would significantly disrupt influencer marketing. Brands would be forced to seek alternative platforms for influencer collaborations, potentially disrupting established partnerships and ongoing campaigns, requiring businesses to rebuild relationships and adjust their strategies.

Worldwide implications of a TikTok Ban in the US

A TikTok ban in the US would have significant ripple effects on international brands.

Even if the app is still available across many other countries worldwide, a ban in the US might cause the app to lose popularity elsewhere. Audiences who follow US personalities or influencers might flock to other platforms instead – increasing usage rates on those platforms and decreasing TikTok use. Privacy concerns might also cause other countries to follow suit on similar bans, meaning that instead of just declining in popularity, the app might just become unavailable altogether.

If this occurs, companies that rely on TikTok for marketing would face disruptions, potentially needing to overhaul their global strategies.

The ban would also result in a direct loss of a US audience for international eCommerce brands that sell or ship to the US. Similarly, brands collaborating with US-based influencers on TikTok would lose those partnerships and the ability to leverage those influencers’ audiences.

However, the impact won’t be entirely negative.

A US TikTok ban could reshape the global short-form video landscape. Other platforms might rise in popularity, and new platforms could emerge to fill the gap left behind by TikTok. This shift could lead to new opportunities for brands and content creators alike, as the market adjusts to fit a new competitive environment. Brands would need to adapt quickly to these changes, exploring alternative platforms and strategies to maintain their reach and engagement.

How brands can adjust their marketing strategies if the TikTok ban is put into place

Brands should put more of a focus on enhancing their organic social media strategies on platforms other than TikTok. This involves:

• Identifying where their target audience is most active outside of TikTok, such as Instagram Reels, YouTube Shorts, or Pinterest.
• Analysing past performance data on these platforms to help brands understand what content and strategies have previously been successful, informing future decisions that are primed for success.
• Adapting content to more appropriately cater to the audience and strategies of alternative platforms, and cross-promoting content from TikTok to other channels can help retain audiences who may have been lost due to the ban

In addition to enhancing social media strategies, brands should focus on other areas of digital outreach, such as content marketing and digital PR. This involves coming up with creative and engaging campaigns that will resonate with target audiences – sharing varied forms of content associated with the campaign on your website to increase brand authority, attract organic traffic, and encourage website visits.

Aligning these campaigns with hot topics, interesting news stories, and current events is also a good way to encourage pick up from relevant news outlets, and industry publications. This not only helps build a strong backlink profile which is beneficial from an SEO perspective, but also boosts the authority of your brand, by positioning your brand as a leading voice on highly talked about, news worthy topics relevant to your audience and industry.

Brands will also need to reassess and reallocate their marketing budgets. Evaluating the ROI of current spending is essential before making any changes. Shifting spending to high-performing channels and allocating a portion of the budget for testing new strategies can help identify new growth opportunities. For those that have heavily invested in TikTok previously, diversifying budget allocation across multiple channels can help reduce risk and ensure that brands are not overly reliant on any single platform.

Summary & final remarks

Ultimately, the fate of TikTok in the US is still unknown. What is certain, however, is that the platform has become a crucial marketing tool in the digital world, and any action taken against it will have wide-reaching impacts. Businesses must stay informed, remain adaptable, and be prepared to pivot their strategies as the situation evolves. The coming months will be crucial in determining the future of short-form video and social commerce in the US and beyond.