ByteDance owned TikTok is preparing advertisers for a possible ban of its app in the United States, as ad buyers said the company started offering refunds for ad campaigns that are unable to run.
Meantime, TikTok’s anticipated $1 billion in 2020 revenue is a small fraction of its parent ByteDance’s overall sales. But TikTok has become popular with its user-generated lip-syncing, dancing, and comedy sketch videos.
But the uncertainty rises for TikTok in the U.S. because of the recent Trump’s ban order on ByteDance and WeChat (part of Tencent Holding). And now TikTok said it will continue to honor planned ad campaigns, refund any that it can’t fulfill, and would also work with major influencers to migrate to other platforms in the event of a ban.
Notably, U.S. President Donald Trump signed an executive order on Thursday that would ban U.S. transactions with TikTok and WeChat, the Chinese-owned messaging app, beginning Sept. 15.
“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,” Blake Chandlee, TikTok’s vice president for global business solutions, said in a statement.
After these developments come into the light, some advertisers are forming contingency plans and considering other apps to move their marketing budgets.
Clearly, Snapchat can be one of the options for advertisers that need to reach TikTok’s younger audience. One of the popular forms of advertising on TikTok is a hashtag challenge, where users post videos about a brand’s product.
And Since sponsoring a hashtag takes advance planning, therefore now the company seems to put a pause on those ads, given the looming Sept. 15 deadline.