Uncertainty for TikTok advertisers with Trump’s return to power

Source: © Cottonbro Studio Pexels There is uncertainty for advertisers on TikTok as the platform's future hangs in the balance with Trump’s return to power

Trump's winning the election means his shift on TikTok’s potential ban could impact the app’s future in the US.

This creates uncertainty for advertisers targeting its 170 million American users. In Q4 (now), plans for the 2025 budget are being discussed – whether it’s wise to allocate budget to TikTok is unclear.

In the run-up to the election then President-elect Trump reversed his 2020 stance on banning TikTok, telling supporters to “vote for Trump” if they want to “save TikTok in America”.

TikTok’s fate also hangs in balance as Trump’s election victory could impact the Biden-era law requiring ByteDance to divest from TikTok by January 2025.

While Trump’s election and changed stance on TikTok could significantly impact the app’s future in the US, it is likely that legal challenges will play a decisive role.

Legal challenges

Current law requires ByteDance to divest from TikTok by January 2025.

TikTok has sued the federal government, citing First Amendment violations.

Alan Rozenshtein, Associate Professor at the University of Minnesota Law School says, “It’s such a big issue. It affects 170 million Americans. It’s a core First Amendment question.”

The case is being decided by D.C. Court of Appeals and it could reach the Supreme Court by the US summer of 2025 but it remains to be seen if the Supreme Court takes up the case.

Previous lobbying efforts by ByteDance investor Jeff Yass had softened Trump’s stance, which led to a significant shift from his previous calls for a complete ban.

According to Wired interviews, employees are largely avoiding discussions about the potential ban, with one anonymous product manager noting “almost a consensus not to talk about this thing”.