On April 24, 2024, The U.S. Government passed a bill (the Protecting Americans from Foreign Adversary Controlled Applications Act) giving ByteDance nine months to sell TikTok to a U.S. company or face the app being banned in U.S. app stores. While the fate of the video platform is far from sealed, there seem to be three potential outcomes:
Outcome #1: The bill is overturned in court
TikTok CEO Shou Zi Chew posted a public video on TikTok in response to the bill’s signing, calling the ban an attack on free speech. Chew promised that TikTok would fight this bill in courts, reiterated TikTok’s emphasis on data security, and urged people to continue to use the platform. He also asked users to share how TikTok impacts their lives, which many have done—including a large volume of calls into Congress.
An additional tactic from TikTok: highlighting innovations and proving its value in the marketplace. During their 2024 NewFront presentation, they reiterated their fight for the app and current ownership and unveiled new, high-quality, premium partnerships with the NHL and Paramount. They also showed off new features giving advertisers more control of the context of their ad placements, and brought a representative from Unilever to the stage who spoke about the importance of the platform to their business and their customers.
TikTok creators are also joining the legal party, funded by TikTok. They’re arguing that the ban violates their right to free speech and that their ability to make a living will be put at risk if the app is banned. While we can’t tell you if this free speech plus economic hardship argument will be effective in courts—we’re marketers, not lawyers, after all—it seems this will likely prolong the legal battles.
What marketers should do: This is likely going to be a long, drawn-out process. Take a deep breath and stay the course. When appropriate, take advantage of the innovations and partnerships released by TikTok in their quest to assert marketplace relevance.
Outcome #2: ByteDance sells TikTok, sans-algorithm
TikTok’s (in)famous algorithm is what made the platform a media giant, but is the name of the app itself enough to keep it going? Billionaire Frank McCourt seems to think so, as he’s organizing a group of bidders to purchase TikTok’s U.S. business, minus the algorithm. While ByteDance has insisted they aren’t interested in selling the platform, selling without the algorithm may be an attractive option if legal avenues fail.
What marketers should do: New ownership and a new algorithm for TikTok would be some big changes, but that doesn’t mean the app’s popularity among its audience would change right away. Should this path occur, we’ll be heavily monitoring the app’s continued effectiveness, data security, and pricing.
Outcome #3: ByteDance and TikTok leave U.S. app stores
If the Protecting Americans from Foreign Adversary Controlled Applications Act is not overturned, and ByteDance refuses to sell the U.S. version of TikTok (with or without its algorithm), then TikTok will no longer be offered in American app stores sometime between January and May of 2025. While the app won’t immediately disappear from phones, it would likely die a slow death without the ability to add new users or receive software updates.
What marketers should do: For now, stick to your current 2024 plans. However, thinking about alternatives to TikTok should this ban stay in place is never a bad idea. While Meta Reels and YouTube Shorts will likely absorb a majority of TikTok’s audience and time spent, they likely won’t take all of it. We also have our eye on Snapchat (particularly for younger generations) and have an eye on the marketplace should an opportunistic competitor reveal themselves.
All of this to say, we have a long road ahead. For now, if TikTok is already part of your 2024 plans and you’re seeing the results you’re looking for, stick with it. As the app’s future becomes clearer, flexibility will be key. Remember that there’s no “right answer”—as you build out a backup plan, your industry, audience, and goals are unique to you, regardless of platform. In the meantime, we wait for the legal process to sort itself out. Just don’t forget to breathe.