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Trump’s Threats On TikTok Recedes With His Exit, Firm’s US Ad Business Picks Up


02/17/2021


Trump’s Threats On TikTok Recedes With His Exit, Firm’s US Ad Business Picks Up
It was just last July that the business prospect of the Chinese owned short video sharing app TikTok looked bleak in the United States under threat from the former president Donald Trump who accused the app of being a front for the Chinese government.
 
Advertisements on the app were stopped by big brands as the company offered refunds to advertisers if the popular social media ad was to be banned in the US from operating.
 
However all that changed after it became apparent that Joe Biden was set to become the next president of the US.
 
"The interest in TikTok has exploded," said Erica Patrick, vice president and director of social media at Mediahub Worldwide, which has worked with brands including Netflix and Twitch. She now expects more client spending on the app within the next six months.
 
Corporate sponsors have been reported to be rushing back to advertise on the popular short video sharing app as they booked advertising campaigns and trying out new ways to appeal to customers, according to advertising executives quoted in the media, even as the new US Biden administration has put on hold the government lawsuit filed by the Trump officials against the company.
 
Patrick said that the accusations against the company centring around concerns over national security during the previous administration now seems like to have been "more of a stunt" and it is apparent that it has not been a serious issue for advertisers on the platform.
 
For many advertisers, who were previously sitting on the fence, the defeat of Trump in the presidential election seems to have been the turning point to return to the platform, one media buyer was quoted in a report as saying. With things changing fast, the app also reportedly had approached larger brands individually as it tried to prop its slagging business and the still remaining concerns of the brands about issue like placement of their ads.
 
Compared with the advertisement business of the larger social media platforms, the US online advertisement share of TikTok is estimated to be small. The company however said claimed it has seen a 500 per cent growth in advertisers running campaigns in the United States over the entire year of 2020. The company is in constant touch with advertisers about brand safety, it said.
 
According to a statement from a TikTok spokeswoman, the company has signed up McDonald's, Kate Spade, Chobani and Bose, as well as non-profit organizations including St. Jude Children's Research Hospital since late last year.
 
Christina Kelleher, manager of global social media for Bose, said that ads on TikTok are watched for longer than on other platforms as found by Bose.
 
According to ALSAC, using a according to ALSAC, about $50,000 has been raised by St. Jude since September last year.
 
"TikTok is one of our fastest growing platforms," said Rick Shadyac, chief executive of ALSAC, adding that the organization's first ad campaign in December with actress Ashley Tisdale had "tremendous engagement."
 
(Source:www.gadgetsnow.com)