Even though the Chinese owned short video sharing app TikTok is currently faced with a possible ban by in the United States after the government accused it of being a national security risk, many of the major advertisers including Procter & Gamble, Danone and Chipotle Mexican Grill have decided to stick around with spending on the app, according ot a report by the news agency Reuters.
They are, however, monitoring the situation and any implications for their campaigns, said brands who were interviewed by Reuters.
Despite being in its nascent stages, the advertisement side of TikTok has been able to attract big names and brands that have the target of reaching out to the millions of American teenagers who make up the bulk of the users of the short video sharing app and engage in activities on te app such as dance challenges, makeup tutorials and lipsyncing videos.
Content and campaigns on TikTok tend to go viral more quickly than on other social media platforms like Facebook and Instagram because of the close involvement of its users in generating their own videos.
“TikTok epitomizes what social media stands for in advertising right now,” said John Petty, head of social strategy at creative agency Wieden + Kennedy NY. The advertising clients of his company for TikTok include &G, Samsung and candy maker Trolli.
With the novel coronavirus pandemic forcing people to stay indoors and interacting more with friend, the number of users of TikTok have grown substantially in the US. But the operations of the app in the US could end anytime if the Trump administration is able to successfully ban all domestic transactions – including advertising – with the app. China’s ByteDance is the owner of the app.
The app’s security and privacy rules have been criticized by US politicians irrespective of party and belief and have also expressed concerns that the personal information of the millions of American users of the app could be handed over to China’s government by the parent company.
After imposing a temporary hold on the ban of the app in the US, a US court will be hearing the case on November 4 – which relates to whether the government should be allowed to bar all transactions with TikTok, the day when the US will vote for the electing next President of the country.
Despite the looming threat ot the very existence of the app in the US, a new TikTok campaign for its Oikos Triple Zero yogurt was announced last week by France’s Danone.
“For us, it’s all about being where our consumers are and making sure we are executing our campaigns in a safe way,” Danone’s U.S. marketing head Linda Bethea told the media.
“Leading into this campaign, we were always proactively prepared for potential shifts in strategy,” Bethea said. “But for now we are committed to continuing the campaign on the platform.”
Even with an eye on the outcome of the US litigation, Procter & Gamble, one of the world’s top advertisers – said it, would continue to use TikTok where possible.
“For the most part we’re advising clients to stay the course with their TikTok buys,” said Allie Wassum, who heads social strategy for ad agency Digitas North America , adding that TikTok has shown a commitment to “making it work”.
According to Joe Gagliese, CEO of influencer marketing firm Viral Nation, some companies are staying on the TikTok sidelines for now.
“This is crunch time for brands preparing for Q4, and if they were going to activate now it would have needed to be planned during the time when there was a lot of uncertainty around the app,” he said.
(Adapted from USNews.com)