TikTok remains at the centre of US-China tussles, with growing calls to spin off the app from parent company ByteDance, or ban it entirely, over fears of potential security risks. Almost half of the US states have already banned the app on governmental gadgets, including New Jersey, North Carolina, and Ohio. With countries around the world following suit – the UK, Australia, and Canada to name a few – are we truly creeping closer to a total US ban?

Brands’ positive outlook remains, for now

Despite ongoing scrutiny from the US government and the threat of a possible ban, advertising on TikTok increased by 11% in March, with some of the biggest spenders including Amazon, Apple, DoorDash, and Pepsi.

“Brands are committing their budgets in significant figures because TikTok has proven time and time again that it can create trends for brands, but crucially it has also shown great success in translating cultural relevance and moments of brand fame through to commerce,” Melissa Chapman, CEO social media agency Jungle Creations, told Fortune Magazine.

However, despite brands continuing to increase their budget for TikTok advertising activations, it’s important that they don’t jump the gun. Especially now with the RESTRICT Act in the US, described as "a systematic framework for addressing technology-based threats to the security and safety of Americans”. Some individuals have raised concerns about the criminal penalties associated with the ban, which include a fine of up to one million dollars and/or imprisonment of up to 20 years.

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