TikTok’s Creams and Candies Face US Ban

TikTok’s Shutdown Threatens Small Businesses and Influencers

TikTok’s US Site Generates Billions for Businesses

TikTok says its US site generates billions for businesses selling candies, beauty products, clothes, and other consumer goods. However, the Supreme Court’s recent ruling banning TikTok in the United States poses a significant threat to these businesses. The ban, which takes effect on Sunday, January 19, will force many small and medium-sized firms to shut down their operations or shift their marketing strategies to other platforms.

Impact on Small and Medium-Sized Businesses

According to estimates by economic advisory firm Oxford Economics, small and medium-sized food and beverage businesses, which saw a revenue increase of $4.1 billion in 2023 from marketing and advertising on the app, will be among the most affected. These businesses have come to rely heavily on TikTok’s massive reach of up to 170 million Americans to promote their products.

Influencers and Brand Ambassadors

Many TikTok users are paid to be brand ambassadors for companies, selling merchandise and affiliate partnerships. The platform also compensates some creators for making videos. These individuals, known as influencers, have built their careers on the app and will be severely impacted by the ban.

Impact on Influencer Marketing

The shutdown will also disrupt the influencer marketing industry, which has become a significant revenue stream for many creators. According to Lithuania-based influencer marketing agency Billo, a TikTok influencer with 10,000 to 100,000 followers can potentially earn $2,000 per brand campaign. For some top US creators, the entirety of their income will come to a halt, forcing them to pivot to other platforms such as YouTube or Meta’s Instagram.

What’s Next for Businesses and Influencers?

While some businesses and influencers are preparing for the worst, others are holding sales and dropping prices to clear out inventory. Many are also shifting their marketing strategies to other platforms, such as Instagram and YouTube. Some, like e-commerce consultancy Front Row, have been preparing for this possibility since April 2024, while others, like e.l.f. Beauty, have no plans to abandon the platform.

Conclusion

The shutdown of TikTok in the United States poses a significant threat to small and medium-sized businesses and influencers who have come to rely on the platform for their livelihood. While some have prepared for this eventuality, others will be severely impacted by the ban. The future of these businesses and influencers hangs in the balance as they navigate the uncertain landscape ahead.

Frequently Asked Questions

Q: What is the impact of the TikTok ban on small and medium-sized businesses?
A: The ban will force many small and medium-sized businesses to shut down their operations or shift their marketing strategies to other platforms.

Q: How will influencers be affected by the ban?
A: Many influencers will lose their primary source of income, forcing them to pivot to other platforms.

Q: What are some alternatives to TikTok for businesses and influencers?
A: Businesses and influencers are shifting their marketing strategies to other platforms, such as Instagram and YouTube.

Q: Will the ban have a significant impact on the economy?
A: Yes, the ban is expected to have a significant impact on the economy, with small and medium-sized businesses and influencers being particularly affected.