Advertisers who use TikTok to reach young customers are making backup plans with social media competitors in case the short-form video app is sold or banned in the United States.
Still, many are waiting for Senate action before spending marketing dollars, reported Reuters.
House Republicans voted Wednesday to force Chinese internet giant ByteDance to sell TikTok within six months or face a ban. This would pose one of the company’s most major obstacles, as it has long faced national security worries.
The White House has urged the Senate to pass the law, which US President Joe Biden has promised to sign.
The report noted that ad analysts predict that if TikTok is prohibited, its main competitors, Meta’s Reels and YouTube’s Shorts, will benefit from advertising dollars.
According to Insider Intelligence, TikTok is expected to generate $8.66 billion in advertising revenue in the United States this year.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
