'More Than Marketing Tools': Some Business Owners Are Worried About the Possible TikTok Ban A ban could have lasting effects on the creator economy.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- TikTok faces a Jan. 19 ban in the U.S.
- The ban could cost creators and small businesses $1.3 billion in revenue and earnings in one month, according to TikTok.
- Creators are adapting to the change by joining other social media apps and building email lists.
As TikTok attempts to pause a fast-approaching deadline that forces it to separate from its Beijing-based parent company ByteDance or face a ban in the United States, small business owners are starting to prepare for the worst. The Supreme Court listened to arguments on Friday and is expected to rule on the case by the end of next week.
In the meantime, creators are building email lists, joining other social platforms, and starting newsletters.
Lizz Smoak, co-founder of branding and marketing agency, Maiden Media, and a mentor and chairwoman for volunteer business mentor organization SCORE said the ban is about more than the app.
"It's about the businesses and creators that rely on it," Smoak told Entrepreneur. "I've seen how critical platforms like TikTok are for entrepreneurs. They're more than marketing tools; they're lifelines for businesses."
Creators who protested outside the Supreme Court Friday in Washington said the same. Andrea Celeste Olde, a TikTok content creator, told the New York Times that the platform helped her launch her business after being a stay-at-home mom for 10 years.
"TikTok is where I created my community," she told the publication. "I have made friendships. I have business partners. That's how we connect."
Smoak says that TikTok's algorithm makes it one of the only platforms where small business owners and emerging entrepreneurs can go viral without spending a fortune pushing their content, and a ban would throw "thousands of businesses off track."
In December, TikTok warned in a court filing that if the ban goes through, creators and small businesses in the U.S. could lose $1.3 billion in revenue and earnings—in one month.
Related: Looming TikTok Ban Has Creators Questioning How Much of Their Business They Really Control
Still, a Statista survey, conducted from April to May 2023 among U.S. TikTok users found that 73% of respondents thought TikTok was addictive and 27% said they experienced negative mental health effects because of the app.
"A ban could be a wake-up call for healthier online habits," Smoak stated.
The founder and CEO of handwritten notes service Handwrytten, David Wachs, told Entrepreneur last week that brands should strengthen the community they have grown on TikTok by hosting virtual events like webinars, live Q&A sessions, and virtual product launches that encourage real-time interaction.
"The potential ban of TikTok has sent ripples through the marketing world, urging brands to rethink their strategies," Wachs said. "While it may seem like a setback, this shift opens up a valuable opportunity for brands to enhance direct engagement with their audience."
Related: Is Kevin O'Leary Buying TikTok? 'Shark Tank' Star Teams Up With Frank McCourt for 'People's' Bid
Other experts suggest reaching out to big brands with influencer marketing programs, like Walmart and Amazon, to diversify your content and options.
