Tips for retailers and brands operating in the U.S market

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A Recap: The U.S. government has banned TikTok overnational security concerns and potential Chinese government data access. Signed into law in April 2024, the ban requires ByteDance to sell TikTok’s U.S. operations by April 4, 2025, or face a shutdown. TikTok is challenging the law, arguing it violates free speech and lacks evidence of wrongdoing. While the outcome remains uncertain, advertisers, brands, and retailers are preparing for its possible exit. For now, TikTok remains operational in the U.S. until the divestment deadline.

Timeline of the TikTok Ban

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2019:

· November: U.S officials begin expressing concerns about TikTok's ownership by ByteDance, citing potential national security and data privacy risks.

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2020:

· August: President Trump issues an executive order mandating ByteDance to sell TikTok's U.S operations within 45 days or face a ban.

· September: TikTok files an injunction to block the ban, leading to a temporary halt in enforcement.

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2021:

· February: The Biden administration pauses the ban and initiates a broader review of apps that pose potential security risks.

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2023:

· March: TikTok's CEO testifies before Congress to defend the company's handling of U.S. user data and to promote its "Project Texas" initiative, aimed at safeguarding data from foreign access.

· April: Several states ban TikTok on government devices, reigniting public and political debates.

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2024:

· March: The House of Representatives passes legislation requiring ByteDance to sell TikTok's U.S operations or face a nationwide ban.

· April: President Biden signs the legislation into law.

· May: TikTok files a lawsuit challenging the new law.

· December: A federal appeals court upholds the ban, increasing pressure on ByteDance to comply.

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2025:

· January 17: The U.S Supreme Court upholds the federal law mandating ByteDance to divest its U.S. operations by January 19.

· January 18: TikTok shuts off service for U.S. users and is removed from app stores.

· January 19: Former President Trump issues an executive order delaying enforcement of the ban for 75 days, until April 4, 2025.

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Reasons behind the TikTok ban

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The primary concern leading to the proposed ban is national security. U.S. officials have expressed apprehension that TikTok's ownership by ByteDance could allow the Chinese government to access American users' data and potentially influence content on the platform. These concerns have been bipartisan, with both the Trump and Biden administrations taking steps to address them. TikTok has attempted to mitigate these concerns through initiatives like "Project Texas," which aims to store U.S. user data domestically and implement stricter data access controls.

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What does a potential TikTok ban mean for brands?

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A potential TikTok ban presents significant challenges for brands that have built strong engagement with Gen Z and millennial shoppers on the platform. With TikTok’s ability to drive product discovery, trends, and conversions, brands that rely on it for marketing and sales may need to rethink their strategies. This may require additional investment, creative adaptation, and new approaches to customer acquisition. Nevertheless, brands must act now to future-proof their digital presence.

What Should Brands Do Until April 4, 2025?

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Diversify Marketing and Ad Spend Across Platforms

· Shift budget allocation to Instagram Reels, YouTube Shorts, and Snapchat Spotlight to maintain short-form video engagement.

· Test performance across multiple platforms tounderstand where shoppers are most active.

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Repurpose TikTok Content for Other Channels

· Adapt successful TikTok videos for Instagram Reels, YouTube Shorts, and Pinterest Video Pins. Recently, we achieved 110% growth in engagement through YouTube for Foot Locker in the APAC region.

· Monitor engagement to determine which content resonates best on different platforms.

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Build Owned Customer Audiences (Email, SMS, and Communities)

· Use TikTok while it’s still available to drive customers to owned channels like email, SMS, and brand communities (Discord, Telegram, or private Facebook groups).

· Offer exclusive content, discounts, or early product access to encourage sign-ups.

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Stay Updated on Legal Developments

· Monitor ByteDance’s response and legal challenges that could impact TikTok’s future in the U.S.

· Follow industry updates and social media trends to stay ahead of shifts in consumer behavior.

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Explore New and Emerging Social Commerce Platforms

· Test new short-form video platforms that could gain traction if TikTok is banned.

· Consider experimenting with social commerce features on Pinterest, Triller, and Clapper to maintain digital sales channels.

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Should brands stop activities on TikTok until April 4, 2025?

Definitely not! Brands should not stop TikTok activities until April 4, 2025. Instead, they should continue leveraging the platform while preparing for a potential exit. TikTok remains a powerful tool for product discovery and engagement, especially among Gen Z and millennials. Brands should use this time to produce content that can drive TikTok users to owned channels like email and SMS and other social media platforms, vis-à-vis Instagram and YouTube.

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Conclusion

While TikTok’s future in the U.S. is unsettled, brands should be prepared for a shifting digital landscape. Instead of pulling back, they should maximize TikTok’s reach while preparing for potential changes. Diversifying marketing efforts, repurposing content for other platforms, and building owned customer channels will help brands stay resilient. While this adds to the workload, it’s crucial to be proactive rather than reactive. Relying on a single platform is always risky, so this transition period offers an opportunity to explore new marketing channels and growth strategies - ensuring long-term stability, regardless of TikTok’s fate.

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Want support with channel diversification?

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About Crealytics

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Crealytics is an award-winning full-funnel digital marketing agency fueling the profitable growth of over 100 well-known B2C and B2B businesses, including ASOS, The Hut Group, Staples and Urban Outfitters. A global company with an inclusive team of 100+ international employees, we operate from our hubs in Berlin, New York, Chicago, London, and Mumbai.

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