With its future uncertain in the US, media buyers hold back spending on TikTok

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 12, 2020, 11:21 AM UTC

The US president recently signed an executive order to force TikTok to sell its US operations by September 20.

With uncertainty growing around TikTok’s future in the US, media buyers are holding back their budgets for the platform. While Advertisers are likely to test out TikTok competitors like Triller and Instagram Reels, “no one is rushing to commit Q4 budgets” to the beleaguered platform. 

Advertisers who are already running campaigns on Byte-Dance owned platform will likely continue with those campaigns until an outcome is clear. But, the executive order has renewed brand safety concerns for advertisers.

The order also has increased the reputational risk to advertisers who are associated with the platform. Ebiquity’s Jed Meyer said brands would like TikTok to be in the hands of a “blue-chip company like Microsoft” to address data privacy issues.

Read the original article

[3 minute read]