The Impending TikTok Ban: How Brands Are Adapting to the Social Commerce Landscape
The impending TikTok ban in the United States is sending shockwaves through the social commerce landscape, with brands that have built their following on the platform facing a make-or-break situation. TikTok has emerged as a powerful tool for brands looking to connect with online shoppers, particularly younger demographics.
According to the 2023 PYMNTS Intelligence report “Tracking the Digital Payments Takeover: Monetizing Social Media,” a significant number of consumers are turning to social media for shopping, with 43% actively seeking goods or services on these platforms and 14% making purchases through them. Among Generation Z, these numbers are even higher, with 68% using social media for shopping and 37% engaging with TikTok specifically.
The potential ban on TikTok could have serious consequences for brands that have invested time and resources in building a presence on the platform. Without access to their audience, these brands may struggle to communicate with followers and potential customers, impacting their visibility and engagement.
Fiona Co Chan, CEO and founder of skincare brand Youthforia with over 190K followers on TikTok, expressed concerns about the ban’s impact on small businesses like hers. However, she believes that TikTok’s influence on the social commerce landscape will endure, regardless of its availability.
In response to a TikTok ban, brands may need to pivot quickly to alternative platforms to maintain their online presence and reach their audience. This transition could require additional resources and time to rebuild a following and adapt content for new platforms.
Nadya Okamoto, CEO and co-founder of August with millions of TikTok followers, emphasized the need for brands to diversify their platforms and content to mitigate the effects of a potential ban. She has already shifted her focus to other channels like Instagram, YouTube, Snapchat, and Threads to ensure a strong online presence.
As brands brace for a major shift in the social commerce landscape, the key will be adaptability and flexibility in navigating changing algorithms and platforms. The future of social commerce may be uncertain, but one thing is clear: brands will need to evolve to survive in this rapidly evolving digital landscape.