TikTok is preparing for a possible app ban in the United States by offering refunds for ad campaigns that are unable to run.
Despite TikTok being a small contributor to the sales of its Chinese owner ByteDance’s with an anticipated $1 Billion in 2020’s revenue, its advertising business is still developing due to its gained popularity. Tiktok has become the place for brands to advertise because the app is winning over the hearts of a lot of millennials.
Rob Pearsall, Senior Vice President of Biddable Media of ad agency Havas Media mentions that Tiktok has announced through a memo sent in their ad agency that the app will still continue all planned ad campaigns but will refund those that will not be able to make it once it gets banned. They are also planning to work with major influencers to switch to a different platform in the event of a ban.
President Donald Trump has already signed an executive order that would ban U.S. transactions with TikTok and WeChat, the Chinese-owned messaging app, beginning Sept. 15. With this said, advertising companies are now planning on their contingency plans and considering transferring to another platform.
TikTok’s fate in the US may not be good right now and a lot of its users are in panic and are looking for alternatives. Here in the Philippines, though, it is still well and alive. Plus, the local government has assured that they have no plans of banning the app in the country anytime soon because they don’t see anything wrong about it. Besides, some government officials have also resorted to the app to gain attention. So, to all Filipino TikToker’s out there, no need to worry about an app ban.