TikTok Ban Sparks Panic Among Advertisers as Deadline Looms

Advertisers dependent on TikTok scrambled this week to prepare for the potential U.S. ban of the app, set to take effect Sunday. The once-dismissed possibility now feels imminent, leaving many marketers in crisis mode. Kerry Perse, founder of Influence & Inspire Consulting, noted, “It seemed unbelievable just weeks ago to imagine TikTok disappearing.”

Chinese-owned ByteDance faces a January 19 deadline to sell TikTok’s U.S. assets or risk an unprecedented ban over national security concerns. Despite TikTok’s efforts to reassure advertisers with refund policies and new features, uncertainty remains. The app, used by 170 million Americans, has become a key platform for influencers and e-commerce. Advertisers and creators alike are now downloading data to safeguard their content.

If the ban takes effect, $11 billion in U.S. ad spending could shift to platforms like Instagram and YouTube Shorts, according to WARC Media. TikTok’s share of U.S. social media ad spending has soared, growing from 2% in 2020 to 20% in 2024, fueled by influencer-driven e-commerce and its popularity among younger audiences.

The uncertainty surrounding TikTok has created a tense atmosphere among advertisers, who had anticipated a legal resolution. Craig Atkinson, CEO of Code3, likened the situation to a “wolf sighting” after months of dismissing the threat. Meanwhile, TikTok’s ongoing promotional efforts, including events at the World Economic Forum, signal its attempt to maintain optimism amid chaos.

With ad spending on TikTok projected to rise by 57% in early 2025, a ban could dramatically reshape the digital marketing landscape, forcing brands to adapt quickly. As creators urge followers to save their content, the platform’s potential shutdown marks a pivotal moment for advertisers relying on its unique reach and engagement.