Meta and YouTube are banned in the US on Sunday as rival technology platforms prepare to acquire potential land for users and sales. If it is banned in the US on Sunday, then Meta and YouTube are banned in the US on Sunday If you have set it to increase revenues by billions.
Tiktok warned that “it will be ‘dark’ for 170 million US users from January 19th, when Donald Trump is inaugurated as president. Prohibited.
Potential bans include rivals such as Meta, YouTube, Snap, and Elon Musk’s X, and are ready to hit the Gen-Z users of Tiktok and the money advertisers spend on impacting them .
GroupM, a WPP-owned media purchasing group, has announced that if the ban comes into effect based on its “product similarity” and its ability to handle $15 billion in incremental revenue, Meta and YouTube will be “clear beneficiaries” in the US if it becomes effective He said that it will be. Up to $200 billion.
Martin Sorrell ir, founder of Digital Media Business S4 Capital, said Tiktok’s ad revenue will be split into Facebook, Instagram, Snap, X and YouTube, split into about $1 billion.
Viral short form video apps have become an important part of many brands’ marketing strategies over the past five years since their popularity surge during the pandemic with Gen Z users who are unlikely to be involved in traditional advertising such as television. Ta. This helped Tiktok record annual revenues in the US of $16 billion in 2023, said those familiar with the issue.
Under legal terms, Apple and Google app stores will no longer be able to provide Tiktoks to users. This means that users cannot download the app. US companies also say that “provision of internet hosting services” will be banned by video apps.
Recommended
Tiktok is challenging the law in hopes of being hit by the Supreme Court this week. At the same time, Beijing officials have been discussing the use of masks as brokers in the potential sales of the app’s US business, according to two people familiar with the issue.
Meanwhile, President Trump has promised to “save” the app when he takes the White House in a day’s time, without providing details.
Analysts say it can cause confusion for marketers, at least in the short term. Some advertisers had prepared break clauses in their contract with Tiktok last year to avoid financial commitments in the event of a ban.
“We are pleased to announce that Brian Wieser, CEO of advertising consultant Madison and Wall,” said: , that turns into confusion. ”
“The lack of certainty and whether or not you meet the campaign will cause prices to skyrocket,” he added.
Recommended
The rival tech platform is preparing the opportunity to grab the ad dollars by introducing new features that approach the format of video apps by Tiktok’s young audiences and top creators.
For businesses like Meta, which doubles their push to artificial intelligence, more users or engagement will provide additional requested data to train AI models.
Snap said he had planned this possibility for a year with various teams. In October, we began redesigning the app to bring its short form video closer to a tiktok-like focus. In December, Meta launched trial reels, allowing users to share reel videos with people who do not follow them, mostly close to the tiktok format.
Analysts at BNP Paribas Exane showed last week in a one-on-one conversation that Meta is spending capital expenditures to prepare infrastructure to handle potential traffic from the ban on Tiktok. I’ve said that.
Stefan Slowinski, an analyst at BNP Paribas, said this is likely to include the company securing “data centers and semiconductor capacity.”
Meta did not respond to requests for comment.
Some marketers said last week that Meta’s chief executive Mark Zuckerberg had loosened its moderation policy in an attempt to remove fact-checking and drive the mitigation policy away from Tiktok’s rescue.
Some content could not be loaded. Please check your internet connection or browser settings.
Intelligence Group Emarketer estimates that 22.4% of Tiktok’s US ad revenue will be sent to Meta’s Instagram and 17.1% to Facebook, while Google’s YouTube will cost 10.7% of the split .
According to estimates by analysts at Morgan Stanley, YouTube could be added to revenue for every 10% of Tiktok’s viewer’s time.
YouTube declined to comment.
Among other platforms, analysts say that SNAP has the largest opportunity proportionally given its size and user base to share similar demographics with Tiktok.
Chris Best, CEO of Newsletter Platform Substack, said there would be a “massive shift” if apps that would benefit his company were banned. Subscack is looking to take advantage of the $25,000 “Tiktok Liberation Prize” for the best original video that encourages Tiktokers to join Substack.
Recommended
“We see this as a great opportunity,” Best said. He said “many people are considering which platforms to use” whether they ban it or not.
So far, one of the unexpected beneficiaries is Xiaohongshu, a Chinese social media startup, which has also been called a reintroduction. This app was photographed at the top of the US on the iPhone. This week, Tiktok users fled there as Tiktok users protested against US government laws. Most of that content is in Mandarin, and the app doesn’t have the translation feature to help new US users understand the post.
Some people within the advertising industry are questioning whether their rivals can maintain Tiktok’s business and engage with the Gen-Z user base.
“Meta and YouTube are facing stress testing that may not be ready,” said James Kirkham, founder of digital agencies that advise brands such as Uber and EA Sports. Masu.
He added: “Building infrastructure is one thing, but replicating Tiktok’s cultural magnetism is another thing.”
Additional report by Stephen Morris of San Francisco. Data visualization by Clara Murray
