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Impact of TikTok ban on small businesses

The Elite Times TeamBy The Elite Times TeamMarch 25, 2024No Comments6 Mins Read
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NEW YORK (AP) — Content creators and business executives create TikTok videos about the platform. Possibility of US collapsedisco diva Gloria Gaynor’s ‘I Will Survive’ may provide the soundtrack.

Certainly, companies that build their strategies around TikTok and promote their products there won’t want to draw attention to another app.Small and medium-sized enterprises individual entrepreneur you’re going to feel more pain In case of separation. But if the popular video-sharing service remains under Chinese ownership and Congress bans it, many companies will learn to get along.

There are still many “what ifs” in the bill. passed by the US House of Representatives Last week, it became mandatory for TikTok Parent company based in BeijingByteDance, sells its platform shares within six months or otherwise Banned nationwide.It is unknown when senate whether to introduce a bill or approve a ban at that time;

Big brands rely on TikTok to reach them young consumers They don’t seem to be panicking as they wait to see what happens in Washington. But they’re also starting to plan. Some are revamping promotional campaigns originally intended just for TikTok. Many people are testing alternatives and preferring to work with influencers who have significant followings in multiple areas. social media platform.

“I’m just not the type of marketer who tries to put all my eggs in one basket,” said Jeremy Loewenstein, chief marketing officer of cosmetics brand Milani Cosmetics. “We can pivot at any time. And like any technology, there are always new trials.”

Indeed, if TikTok is no longer welcome in the US, brands like Los Angeles-based Milani will lose a valuable tool. Sales of Milani’s new mascara spiked last year after a couple of influencers known as Lipstick Lesbians posted TikTok videos about it, Loewenstein said. He’s already considering alternative apps like his Flip, a lesser-known shopping platform where users can earn money by reviewing beauty items and buying from featured brands. Masu.

Elf Beauty, another cosmetics company based in Oakland, California, became a viral sensation with a 2019 TikTok campaign that used an original song to explain that the company’s name means “eyes.” lips. face. “Elf is also one of the first beauty brands to join him TikTok shopthe e-commerce arm of the platform in beta testing in the United States.

Corey Marchisotto, Elf’s chief marketing officer, said the in-app shop, which allows viewers to buy products from merchant accounts and videos, is doing well. But unlike before, Instagram Reels, YouTube Shorts, and other places also offer short, real-time videos, she noted. TikTok was isolated.

“We’ll take that great muscle that we’ve built and developed and go with it wherever our community wants to go next. They’ve always carried us. It was a signal,” Marchisotto said.

Some marketing agencies are telling brands to take basic precautions in case Congress ends up eliminating TikTok. Billion Dollar Boy, a New York-based influencer marketing agency, encourages clients to spread their influencer spending across platforms, said the agency’s founder and group CEO. said Edward East.

Established TikTok influencers, including beauty and fashion gurus, continue to post regularly on the app. But Nikla Bartoli, vice president of sales at Influencer Marketing Factory, an agency that works with content creators and brands, says they’re posting exclusive content on Instagram and YouTube and paying more attention to other social media accounts. It is said that he collects

Jasmine Engberg, principal analyst at research firm eMarketer, believes a TikTok ban will have a bigger impact on businesses today than it did a few years ago. Although Instagram Reels and YouTube Shorts offer a competitive edge, Engberg says he hasn’t been able to break the magic formula of TikTok videos when it comes to driving sales.

“You can replicate technology, but you can’t fully replicate culture. People don’t necessarily behave the same way they behave on TikTok,” she says.

Although TikTok doesn’t earn the same level of ad revenue as Instagram or Facebook, the company will surpass the other two in terms of the percentage of users who make at least one purchase this year, according to eMarketer data. I’m predicting. on the platform.

If TikTok were to go down, “I think the impact would be across the board,” Enberg said, “but it would be a much more dramatic impact for small businesses, not just creator-founded businesses.” he said.

Cepia LLC, the toy company that was a hit during the 2009 holiday season zuzu pet, 10 years later, began investing in TikTok with the launch of Cats vs. Pickles, a collection of stuffed animals. Laura Frerichs, head of marketing at Cepia, says that compared to other social networks, the platform has proven to be perfect for telling stories about products and building a community of fans. said.

Decora Girlz, a mid-sized company based in St. Louis, Missouri, invited 30 influencers with a strong presence on TikTok to introduce their new fashion doll line. The kids – I went to FAO Schwarz in Manhattan this month.

Since the launch event, the doll series has amassed more than 53 million social impressions, according to Sepia. This is the number of times her Decora Girlz related posts were viewed across social media platforms.

But the toy industry is used to adapting and will adapt again in the post-TikTok market, Frerichs observed. Until 10 years ago, Sepia focused his advertising on his three television channels: Nickelodeon, Cartoon Network, and Disney Channel.

“The world is changing really rapidly right now,” Frerichs says.

Deborah Meyer, who has been selling new and used handbags and other designer goods from her New Jersey home for 16 years, understands this all too well. Early last year, TikTok recruited her business as a Live Her component of her TikTok Shop.

Mayer says sales have increased by 50% since October thanks to purchases made during Debsluxurycloset. Live streaming display, can gather more than a thousand viewers. She estimates that 60% of her income currently comes from her TikTok, and a ban would be “devastating.”

“We spent a lot of time and effort building this platform,” said Mayer, 52. “It’s going to be a year of wasted work.”

During a closed-door Senate briefing on TikTok on Wednesday, several senators said: Force ByteDance to sell There was an urgency for national security reasons. Others said they wanted to consider various proposals rather than rush to pass the House bill.

Congressional action is a tacit agreement Might not be popular Some senators have called for public advocacy about the app because millions of Americans use it. Alleged dangers of TikTok.

___

Associated Press writer Stephen Groves contributed to this report from Washington.



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