TikTok Aims to Delay Ban, Citing $14.7B Generated for US Small Businesses Last Year
TikTok, amidst U.S. lawmakers’ discussions about a potential ban on the platform, has released an economic impact report highlighting its contributions to small- to mid-size businesses (SMBs) and the broader economy. According to the report, TikTok generated $14.7 billion for SMBs and supported a total of $24.2 billion in economic activity last year.
The platform claims that over 7 million U.S. businesses rely on TikTok, supporting 224,000 jobs, with 98,000 of those jobs directly within SMBs on the platform. California, Texas, Florida, New York, and Illinois were noted as the states with the largest impacts.
Conducted by the economics forecasting group Oxford Economics, the study measured SMB activity on TikTok, ad spend, and ROI, utilizing census data and other metrics for its analysis.
While the release of such a report is not coincidental, given the ongoing discussions about a TikTok ban, its timing is noteworthy. In March, a bill to ban TikTok passed in the House of Representatives with bipartisan support, raising concerns for TikTok’s future. President Biden expressed willingness to sign the bill if it passes in the Senate.
Meta, previously Facebook, seems to be preparing for a potential TikTok ban by updating its platform to promote Reels, long-form, and Live videos, with a focus on vertical format content akin to TikTok’s style. Meanwhile, other short-form video platforms like YouTube could see increased exposure if TikTok were to be banned, potentially creating opportunities for startups in the space.
TikTok’s economic report serves as a plea for the app’s continued operation, emphasizing its role in generating tax revenue ($5.3 billion last year) and supporting SMBs as a marketing and advertising platform.
