In recent months, the future of TikTok in the United States has been uncertain, with talks of a potential ban looming over the popular social media platform. This debate has been fuelled by concerns over data privacy and national security, with government officials questioning whether TikTok’s parent company, ByteDance, shares sensitive user data with the Chinese government. Major news outlets such as The New York Times and BBC News have reported extensively on these allegations, highlighting the increasing calls from both sides of the political spectrum in the US to restrict or even ban the app altogether. For many small businesses that have found success on TikTok, the implications of this potential ban could be far-reaching and disruptive.
Drawing from our experience working with small businesses and digital marketing trends, this blog post explores what we think this means for small businesses outside of the US. We’ll dive into how the ban could affect performance, predict changes in user behaviour and algorithms, and share practical alternatives to help small businesses grow online, even without TikTok as a channel.
The current landscape of TikTok for small businesses
TikTok has become a cornerstone for many small businesses looking to expand their reach. Its algorithm-driven, short-form video content has proven to be an effective and affordable way to connect with niche audiences. For small businesses, the platform offers:
- Increased visibility: Viral trends can amplify brand awareness by exposing your content to audiences far beyond your immediate followers. TikTok’s For You Page is designed to surface engaging videos to new users, meaning small businesses can gain rapid exposure without needing a large ad budget or existing follower base. This organic reach is especially powerful for showcasing unique products or telling compelling brand stories, which for many small businesses is the perfect vehicle to kick-start their brands.
- Engagement: Creative content fosters stronger customer relationships by inviting interactions like comments, shares, and user-generated content. For example, when a small business launches a creative challenge or trend, it encourages customers to participate and spread the message. This two-way communication builds trust and loyalty in a way that static posts on other platforms often cannot replicate.
- Cost-effectiveness: Organic content can outperform traditional paid advertising by generating authentic engagement without hefty investments. TikTok rewards creativity and relatability over polish, allowing small businesses to succeed with low-production-value videos that resonate with their target audience. The ability to test different styles of content quickly and adapt to what works also makes the platform highly efficient from a marketing perspective.
How will the TikTok ban affect small businesses within the US
The potential ban of TikTok in the United States poses significant economic challenges for small businesses that have integrated the platform into their marketing and sales strategies.
Economic Impact
According to a report by Bold Business, in 2023, TikTok contributed approximately $24.2 billion to the U.S. GDP, with $15 billion generated by small businesses leveraging the platform for marketing and advertising. The platform’s shutdown threatens substantial revenue losses for these enterprises, as many rely on TikTok’s extensive user base for customer engagement and sales.
Further emphasizing the potential impact, Rolling Out reports that TikTok has warned of an estimated $1.3 billion revenue loss for U.S. small businesses within the first month of the ban’s enforcement. This figure underscores the platform’s critical role in enabling small and medium-sized enterprises to engage audiences and drive sales.
Job Losses
Additionally, TechCrunch highlights that over 7 million U.S. businesses rely on TikTok, with the platform supporting approximately 224,000 jobs in 2023. The ban could disrupt these businesses’ operations, leading to potential job losses and reduced economic activity.
How a TikTok ban could impact small businesses globally
1. Reduced Global Reach
For businesses targeting international markets, the loss of US-based TikTok users could reduce overall reach. With over 150 million monthly active TikTok users in the United States alone, this represents a significant share of the platform’s global audience. Losing access to such a large and engaged user base would severely limit the potential reach for businesses relying on TikTok’s algorithm to promote their products or services internationally. This is particularly concerning for e-commerce and digital products that depend on global sales and often rely on trends originating from U.S.-based creators to drive engagement worldwide.
2. Shift in User Behaviour
With US creators migrating to other platforms, smaller businesses might find it harder to tap into viral trends. This could go one of two ways for small businesses still using TikTok without the US audience. On one hand, the algorithm might adjust by prioritising and promoting other creators’ content more aggressively to maintain engagement levels within the app. This could create new opportunities for businesses in non-US markets to gain visibility and traction. On the other hand, the platform might struggle to adapt quickly enough to the reduced dataset. If the algorithm fails to recalibrate in time, it could result in a decline in user engagement, prompting small businesses to migrate to other social apps where audiences are more stable and predictable.
3. Potential Changes to Creator Rates
With TikTok potentially losing its US audience, creator rates might see a significant boost as the platform seeks to retain and reward its remaining creators. For small businesses, this could mean higher costs for partnering with influencers or running paid promotions. However, if TikTok takes the right steps to invest in its creator ecosystem, this could lead to better-quality content and stronger engagement levels on the platform, ultimately benefiting businesses that continue to use TikTok in non-US markets. Rewarding creators appropriately could help sustain the platform’s appeal and maintain a vibrant community of content producers who drive value for brands.
Preparing for a future without TikTok
1. Diversify your Social Media Strategy
For small businesses, relying too heavily on a single platform like TikTok can be a risky move. The potential ban serves as a reminder of the importance of maintaining a diversified income stream. By not depending solely on one channel, businesses can safeguard themselves against sudden disruptions, algorithm changes, or platform closures. Diversification not only mitigates risk but also opens up new opportunities for growth, broader audience engagement, and the ability to test what works best across different platforms.
Consider focusing efforts on:
- Instagram Reels: Leverage its similarity to TikTok for short-form videos, while benefiting from Instagram’s established audience and advanced advertising tools.
- YouTube Shorts: Ideal for storytelling and building brand authority, particularly given its integration with Google’s powerful search ecosystem.
- Facebook Groups: Foster deeper community engagement and brand loyalty by cultivating spaces where customers can interact with your business and each other.
2. Invest in Owned Platforms
Developing owned platforms like websites and email lists ensures greater control over your audience, providing stability in an ever-changing digital landscape. A website acts as your business’s online hub, where you can showcase products or services, host engaging content like blogs, and facilitate direct sales. Email lists, on the other hand, enable businesses to communicate directly with customers, bypassing the unpredictability of social media algorithms. By using tools like newsletters, you can nurture customer relationships, share updates, and drive repeat business. Owned platforms ensure you maintain access to your audience regardless of external disruptions, offering a reliable foundation for growth.
3. Adapt to New Trends
Stay ahead by keeping an eye on emerging platforms that may fill the void left by TikTok. Platforms like Lemon8, which focuses on visually appealing and lifestyle-oriented content, and BeReal, which emphasises authentic and unfiltered engagement, are gaining traction among users. Similarly, emerging platforms such as Bluesky, a decentralised social network that prioritises user autonomy, and RedNote, a platform originally designed for sharing and discovering music-based content, offer unique opportunities for small businesses to connect with niche audiences and explore innovative marketing strategies. Adopting these new trends early allows small businesses to position themselves as innovators and gain a first-mover advantage. Experimenting with content formats and strategies on these platforms can help businesses discover untapped audiences while maintaining relevance in a competitive landscape. At The Business Tea, we specialise in helping small businesses adapt to changing digital landscapes. Whether it’s testing new platforms, analysing emerging trends, or crafting strategies that align with your brand goals, we’re here to ensure your business not only survives but thrives. Our proven, data-driven digital marketing strategies can help you tap into untapped opportunities and create a resilient, multi-channel presence. Explore our consultancy services and services and packages to see how we can support your business in adapting and thriving in the digital landscape.
How small businesses can stay resilient following the US ban of TikTok
1. Enhance your Content Marketing
Focus on storytelling through blogs, podcasts, and videos hosted on owned platforms. High-quality content can drive organic traffic and nurture customer relationships by engaging audiences on a deeper level. Use data to determine the type of content that resonates most with your target audience, whether it’s how-to guides, case studies, or behind-the-scenes glimpses of your business. Consistently creating valuable content builds trust, establishes authority, and positions your business as a go-to resource in your industry.
2. Leverage Influencer Marketing
Partnering with influencers on alternative platforms can amplify your brand’s reach, especially in regions unaffected by the TikTok ban. Collaborating with micro-influencers, in particular, can be a cost-effective strategy for small businesses. These influencers often have highly engaged and niche audiences that align closely with your target market. Ensure you choose influencers whose values and content align with your brand to foster authentic connections and impactful campaigns.
3. Optimise for SEO
SEO-driven content helps small businesses maintain visibility across search engines, even in the absence of TikTok. Focus on optimising your website and blog content with targeted keywords, meta descriptions, and high-quality backlinks to improve search rankings. Regularly updating your site with fresh, relevant content can also drive consistent traffic. Tools like Google Analytics and Ahrefs can provide insights into which keywords and strategies are yielding the best results, allowing you to refine your approach over time.
4. Monitor Data Analytics
Track performance metrics across channels to identify the most effective platforms and adjust strategies accordingly. Use analytics tools to measure key performance indicators (KPIs) like engagement, conversion rates, and ROI. Regularly analysing this data ensures your marketing efforts remain agile and responsive to what’s working. If a platform or campaign isn’t delivering results, reallocate resources to areas with higher potential. By staying data-informed, you can make smarter, more impactful decisions for your business.
At The Business Tea, we can help your business implement these strategies effectively. Whether you’re looking to enhance your brand, increase your website traffic through SEO, or optimise your digital presence across the board, we’re here to guide you. Visit our contact us page to start your journey with us today.
Frequently Asked Questions: TikTok US Ban
Why is TikTok being banned in the US?
The push to ban TikTok in the US stems from rising concerns about data privacy and national security. The platform’s parent company, ByteDance, is based in China, and critics argue that the Chinese government could compel ByteDance to share sensitive user data. This has led to widespread fears about how American user data might be misused for surveillance or influence campaigns. Lawmakers have cited these risks as justification for a potential ban. While TikTok denies these allegations and has taken steps to localise its data infrastructure, including the creation of US-based data centres, this has not fully alleviated concerns. The ban, if implemented, would be one of the most significant actions taken by the US government against a social media platform.
How will the TikTok ban affect small businesses in the US?
A TikTok ban could have profound implications for small businesses, especially those that rely on the platform for marketing and sales. TikTok is a cost-effective tool for reaching large, engaged audiences, and its loss would force small businesses to quickly adapt to alternative strategies. Without TikTok, small businesses may struggle to replicate the same level of organic reach and engagement on other platforms. This could lead to reduced brand visibility, slower customer acquisition, and, ultimately, a negative impact on revenue. Moreover, businesses that have invested heavily in building a TikTok audience may find it difficult to redirect those followers to new channels.
What industries will be most affected by a TikTok ban?
Industries that rely heavily on visual and trend-driven content will likely be hit hardest by a TikTok ban. These include fashion, beauty, food, e-commerce, and entertainment businesses that depend on TikTok’s viral nature to showcase products and services. For example, beauty brands often use TikTok to promote tutorials and reviews, while e-commerce businesses leverage the platform to drive traffic through influencer partnerships and product demos. Without TikTok, these industries may lose a critical channel for customer engagement and sales, making it essential to pivot to alternative platforms quickly.
Can small businesses still succeed without TikTok?
Yes, small businesses can succeed without TikTok by diversifying their marketing efforts and exploring alternative platforms. The key is adaptability. Businesses should invest in owned platforms, like websites and email lists, which provide stability regardless of social media trends. Additionally, platforms like Instagram Reels, YouTube Shorts, and Pinterest can offer comparable benefits to TikTok, allowing businesses to maintain strong customer engagement. Success without TikTok will depend on a willingness to innovate, a focus on high-quality content, and an understanding of audience behaviour across different channels.
What are the best alternatives to TikTok for small businesses?
Alternatives to TikTok include Instagram Reels, YouTube Shorts, and Pinterest Idea Pins, which all offer short-form video content to engage audiences. Instagram Reels is particularly valuable due to its integration with Meta’s advertising tools, while YouTube Shorts leverages Google’s search functionality for discoverability. Platforms like Lemon8 and Bluesky are also emerging as promising options, with niche audiences that provide unique opportunities for engagement. By diversifying their presence across these platforms, small businesses can reduce their dependency on any single channel and explore new ways to connect with customers.
Will TikTok’s algorithm change if the US audience is lost?
If TikTok loses its US audience, the platform’s algorithm will likely undergo significant changes to focus on non-US markets. This may involve prioritising content from creators in other regions to maintain engagement and relevance. However, recalibrating an algorithm that previously relied on one of the largest user bases in the world could be challenging. If the adaptation process is too slow, engagement levels may drop, and creators and businesses could shift to alternative platforms, creating a ripple effect on TikTok’s global appeal.
How can small businesses prepare for a potential TikTok ban?
Small businesses should take proactive steps to prepare for a potential TikTok ban by diversifying their marketing strategies. This includes building a strong presence on alternative platforms like Instagram Reels, YouTube Shorts, and Facebook Groups, as well as investing in owned assets such as websites and email lists. Businesses should also explore new platforms early to establish a foothold before competition increases. Developing a robust content strategy that can be adapted across channels is critical for ensuring continuity and maintaining customer engagement, even in the face of platform disruptions.
What is the economic impact of a TikTok ban on US small businesses?
TikTok contributed an estimated $15 billion to US small businesses in 2023, according to industry reports. A ban would disrupt operations for millions of businesses that rely on the platform for marketing, sales, and customer engagement. The loss of access to TikTok’s 150 million US users could translate into significant revenue declines and increased competition on alternative platforms. Additionally, industries that rely on TikTok trends to drive sales, such as fashion and beauty, may face disproportionate challenges in adapting to a post-TikTok landscape.
Will influencer marketing become more expensive if TikTok is banned?
Yes, influencer marketing costs are likely to rise if TikTok is banned, as demand for influencer collaborations on alternative platforms increases. Influencers with large, engaged audiences on platforms like Instagram and YouTube may charge premium rates due to the heightened competition for their services. However, small businesses can still find value by working with micro-influencers, who often have highly targeted and loyal audiences, making them a cost-effective option for reaching niche markets.
What happens to TikTok creators if the platform is banned?
Many TikTok creators will likely migrate to other platforms, such as Instagram, YouTube, or emerging options like Lemon8. These creators may diversify their content to build audiences across multiple channels, reducing their reliance on any single platform. For small businesses, this migration presents an opportunity to collaborate with creators who are actively seeking to establish themselves on new platforms, potentially offering cost-effective partnerships during the transition period.
How can SEO help small businesses impacted by a TikTok ban?
SEO can play a critical role in helping small businesses maintain online visibility and drive organic traffic. By optimising website content, blogs, and product pages for relevant keywords, businesses can ensure that they remain discoverable through search engines. Tools like Google Analytics and Ahrefs can provide valuable insights into keyword performance, helping businesses refine their strategies to attract and retain customers without relying on social media platforms.