TikTok’s videos are known to keep its users up late into the night, but lately, the app’s links to China are also causing politicians to lose sleep.

On March 13th, America’s House of Representatives passed a bill barring app stores and internet providers from distributing “foreign-adversary-controlled applications.”

Its target - TikTok, the short-video app that keeps 170 million Americans glued for an average of 78 minutes a day.

If this bill is passed in the Senate, TikTok would have about five months to untangle itself from its China-based parent company, ByteDance. 

Digital media publishers take TikTok seriously. 

A December 2022 report by the Reuters Institute found around half (49%) of publishers regularly updated their TikTok accounts with news-related content across 44 countries. That number is likely to be much higher now:

News publisher adoption on TikTok by country

A TikTok ban can significantly impact digital media publishers’ strategies and content distribution. In this blog, we look at some arguments for and against banning TikTok, its potential consequences, and the impact it may have on advertising in general and the digital media publishing industry in particular.

So What Is The Ban About?

Lawmakers have long tried to regulate TikTok because of its ties to China. They argue it threatens national security because the Chinese government could use TikTok to spy on Americans or weaponize it to covertly influence the U.S. public by amplifying or suppressing certain content.

TikTok has repeatedly stated that it would deny requests from the Chinese government for American data. It also points to "Project Texas," an initiative that TikTok began in 2022 to safeguard American users' data on servers in the U.S. and ease lawmakers' fears. 

However, the bill, the Protecting Americans from Foreign Adversary Controlled Applications Act, passed the House with an overwhelming majority (352 to 65).

It is now headed to the Senate where it faces an uncertain future. 

What next? 

TikTok will not be disappearing from Americans’ phones anytime soon.

The bill faces numerous hurdles before being signed into law and will almost certainly face legal challenges. And even if the bill becomes law, the question remains whether an American buyer would step in to save the day (if ByteDance is willing to divest the popular platform).

How likely is the bill to become law?

In the Senate, the bill faces several headwinds.

First, major obstacle: The bill is largely unpopular with TikTok users, many of whom are young voters, and could sway the 2024 US election. The senators are keenly aware of this. Former President Trump, who led the initial charge to ban TikTok while in office, is now against the ban.

Even if the bill passes the Senate, TikTok has signaled it will challenge it in court. A similar statewide bill in Montana was halted after TikTok alleged it violated the First Amendment.

How would the law work?

If enacted, the bill would give TikTok roughly five months to separate from ByteDance, or else the app stores in the U.S. would be prohibited from hosting the app. Violations would result in a penalty of $5,000 per user, which roughly translates to $850 billion in penalties each (!) for Apple and Google.

It’s unclear if ByteDance would agree to sell or spin off TikTok, which is worth an estimated $100 billion. Many US tech companies are already facing fierce regulatory scrutiny, so despite its popularity, TikTok could struggle to find an American buyer.

While the law would ban TikTok from US app stores, removing the existing app from existing users’ phones would be more difficult. Moreover, VPNs could potentially make it possible to get around a TikTok ban. 

What are the views of those in favor of the ban?

The debate surrounding the ban involves a complex interplay of views on national security, free speech, economic considerations, and the ban's broader implications for the U.S.

Those supporting the ban argue that TikTok poses a national security risk due to potential data sharing with the Chinese government. They express concerns about foreign influence through social media, with fears that TikTok could be used for surveillance or influence operations. 

Supporters of the ban argue that a “tough on China” approach is needed to safeguard the United States and its citizens. They argue TikTok is rife with dangerous misinformation, which the government can and should ban. A 2022 NewsGuard investigation found nearly 20% of the videos presented as search results contained misinformation.

Most countries, including the U.S., place some restrictions on foreign ownership of media. Rupert Murdoch became a U.S. citizen in 1985 to satisfy the legal requirement for US television network ownership. 

Recently, a bid by Abu Dhabi’s ruling family for the Telegraph prompted Britain to announce that it would ban foreign governments from owning British publications. Proponents argue that TikTok is a powerful form of new media, and governments must apply the same logic to new ones as to old media.

While a newspaper’s editorial line is black and white, every TikTok user gets a different feed. It is impossible to know whether TikTok’s algorithm responds to users’ preferences or Beijing's manipulation.

TikTok has made expensive efforts to separate American users’ data from others, but it has also argued that selling its American operations would be impractical since they are so closely linked to the rest of the business—thus casting doubt on its claims of strict separation.

What are the views of those opposing the ban?

Opponents argue that the ban would violate American users’ First Amendment rights by taking away a platform they use for free expression. It could also be seen as the government potentially overstepping constitutional boundaries by targeting a single company it dislikes.

Then there is the economic impact if TikTok were to shut down operations. According to a report from Oxford Economics, TikTok contributed $24.2 billion to the U.S. economy in 2023. 

U.S. small and mid-sized businesses (SMBs) used TikTok for marketing and generated nearly $15 billion in revenue in 2023. Forty percent of those SMBs say TikTok is “critical to their existence.” Such SMBs support over 220,000 jobs in the U.S. 

Source: Oxford Economics

Some lawmakers and experts have also argued that the threats cited to justify the bill are not unique to TikTok and could apply to any social media platform. There are also concerns about the feasibility of enforcing a divestiture within the given timeframe, which could effectively result in a ban.

Some opponents see singling out China and TikTok for recriminations as xenophobic and rank political theater.

What could be some of the long-term impacts of the ban? 

Splinternets: In the long term, the ban could widen information inequalities by contributing to the proliferation of "splinternets," where governments restrict content access, leading to global information and innovation inequalities. 

Less Competition: Banning foreign-owned technologies signals that foreign companies may not be welcome, potentially reducing competition and hindering innovation by local incumbents.

Changes in Entry and Operating Strategies: A ban on TikTok could lead to uncertainty for businesses expanding internationally, calling for reconsidering strategies potentially impacting consumer choices and market dynamics.

Economic Impact: The loss of TikTok could significantly alter marketing and customer acquisition for several businesses, potentially leading to decreased consumer spending. The app, for example, plays a crucial role in promoting tourism. A ban could hinder visibility efforts, impacting revenues and growth.

Possible Impact On Digital Media Publishers

Why TikTok matters?

Digital news has become an important part of Americans’ news media diets, and social media plays a crucial role. TikTok started as an addictive app that surfaced an endless stream of short, entertaining videos. Until recently, its reputation was built almost exclusively on fast-moving, funny memes. 

However, stories such as Black Lives Matter, the COVID-19 pandemic, the Ukraine war, and, most recently, the Israel-Gaza war helped make news a much bigger part of the mix on TikTok.

A November 2023 report by Pew Research Center ranked TikTok fourth in news consumption on social media:

Source: Social Media and News Fact Sheet, PEW Research Center

Although the overall audience share is small, TikTok stands out for having a high share of users who regularly go to the site for news, and that share has grown rapidly:

Source: Social Media and News Fact Sheet, PEW Research Center

How would a TikTok ban affect advertising?

In the event of a TikTok ban, publishers, brands, and creators will be forced to pivot to Instagram and YouTube’s equivalent short-form video content formats. Meta, YouTube, and Snap could likely see spikes in revenue.

The change may lead to increased costs and less effective marketing campaigns in the short term, affecting businesses that have seen positive returns on investment from TikTok advertising.

A nationwide TikTok ban would likely cause shifts in consumer spending behaviors, influencing how businesses allocate their advertising budgets and engage with consumers. Marketers, publishers, influencers, and businesses would need to adapt to these changes, which would bring challenges as well as opportunities in the advertising industry.

How has TikTok impacted the way digital media publishers create and distribute content?

TikTok’s unique features and algorithm prioritize discovery, allowing users to encounter content from accounts they do not follow.  

This has influenced publishers to adapt their content creation strategies to align with TikTok's format, focusing on short-form videos that resonate with the platform's audience. Some have tailored their journalistic style and content to fit TikTok's context, incorporating textual features into videos to enhance understanding and engagement. 

Media companies like ABC News and the Washington Post have developed strong followings on the platform, while BBC's TikTok following grew by 20 times in just nine months between May 2022 and January 2023. As of March 2024, BBC has over 5 million TikTok followers. 

The BBC's Tiktok following grew 20 times in 9 months between May 2022 - Jan 2023

Even if a ban were to happen, video is here to stay

TikTok or no TikTok, the app has put short-form video on the map, making it bigger than ever. In 2023, the short-form video was among the top priority for marketers:

Source: Statista

Video is now at a point where it cannot be ignored—it's a language and those who learn to speak fluently command the digital world. 

Gary Vaynerchuk, for example, uses short-form videos to share business advice, marketing strategies, and motivational content with his 10 million+ Instagram followers. 

The core of Gary’s content model revolves around creating "pillar content," a substantial piece of long-form content, such as a keynote speech, Q&A session, or video blog, and repurposing it into dozens of smaller, platform-specific video shorts.

Video is the key for publishers seeking to reach their audience, and that format isn’t going anywhere. Even if a ban were to happen, there would be enough viable alternatives, such as Instagram Reels, YouTube Shorts, Triller, Likee, and Snapchat Spotlight. 

Sure, it’s a short-term upheaval regarding maybe another rebrand to move away from the TikTok-first idea or moving those experimental budgets back into alternative platforms. But it’s not half as much of a hassle as it would be if, say, Meta or Google got banned tomorrow.

Keith Bendes, VP of strategy at Linqia, says, “Given the rise of Reels and Shorts, the cross-platform relevance of TikTok-style content is higher than ever, making the concern over the ban less intense than it would have been before Meta and YouTube introduced those content formats.” 

Why must publishers switch to short-form video?

The success of short-form videos stems from the fast-paced nature of online consumption. With attention spans shorter than ever, content that is quick to engage and easy to digest is more likely to capture and retain viewer interest.

Short-form videos cater to this by delivering content in bite-sized pieces, making it easier for users to consume, enjoy and share. And this is also why video may become the future of the digital media industry.

For publishers, the shift toward short-form video content offers a golden opportunity to connect with audiences more directly and engagingly. It allows for creative storytelling, showcasing products or services, and building brand awareness within a few seconds, reaching potential customers where they spend a significant portion of their time.

How to transition to video? 

The digital media landscape constantly evolves, and innovative solutions are required to keep pace. For publishers, scaling beyond a handful of videos to accompany written content has historically required a significant investment of resources.

And It can present unfamiliar challenges. Fortunately, the enabling technologies around Generative Video AI are also evolving rapidly. OpenAI’s Sora is a recent example.

Today, publishers can use services like Aeon to generate high-quality video at a scale while retaining their journalistic voice.

These innovative solutions speed up publishers’ workflow and optimize decision-making using AI-based software and services that simplify the value chain. They help navigate the production process efficiently and can deliver instream-ready branded videos that align closely with the written content. 

Conclusion

TikTok has revolutionized the social media industry with over 1.5 billion monthly active users globally. Although it is uncertain whether or not a TikTok ban will be imposed in the U.S., one thing is certain - short-form video will continue to exist even without TikTok. This means that publishers must adapt their content creation strategy to maintain audience engagement.