Competitors swoop in: A ban may not materialize, but competitors are still using the buzz to attract advertiser attention and further their own strategies.
- In China, Douyin is the dominant ByteDance-owned short-form video app rather than TikTok. ByteDance isn’t just focusing on video, though, and is rolling out a number of lifestyle, commerce, and delivery features to create a super app comparable to Gojek or WeChat.
- Rather than compete directly with ByteDance’s large market control, Kuaishou is instead focusing on strengthening relationships with existing consumers, and targeting more “adult” sectors like home ownership and job hunting.
- In the US, Meta’s new Reels ad formats are a not-so-subtle nudge to test the waters in case a ban goes through. But that nudge is part of the argument against banning TikTok—its void would quickly be filled by Meta and Google, two companies regulators have been targeting to loosen their ad duopoly.
Our take: Even if TikTok doesn’t get banned, the mere possibility is causing shifts in advertising. Smaller advertisers may be nervous about putting all their eggs in one basket and could diversify spending across platforms like Reels and YouTube Shorts.