NEW YORK (AP) — If content creators and corporate executives made TikTok videos about the platform’s possible U.S. demise, disco diva Gloria Gaynor’s “I Will Survive” could supply the soundtrack.

Many companies that rely on TikTok and use it as a marketing tool would rather not have to shift their focus to another app. Smaller businesses and individual entrepreneurs will likely be more negatively affected if TikTok is banned. However, if TikTok continues to be owned by a Chinese company and is prohibited by Congress, many companies will adapt to the change.

The passing of a bill by the U.S. House has raised many questions about the future of TikTok, as it requires its Beijing-based parent company, ByteDance, to sell its share in the platform within six months to avoid a national ban. It is uncertain when the Senate will consider the bill and whether or not a ban will be implemented.

Major companies that have utilized TikTok for targeting younger audiences seem to be remaining calm while they monitor developments in Washington. However, they are also taking precautionary measures, such as adjusting marketing strategies originally designed solely for TikTok. A significant number are also experimenting with other options and emphasizing partnerships with influencers who have strong presences across various social media sites.

“I prefer not to rely solely on one strategy,” stated Jeremy Lowenstein, the CMO of Milani Cosmetics. “We have the ability to adapt and there will always be advancements to explore, similar to in technology.”

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If TikTok is no longer allowed in the United States, brands such as Milani, based in Los Angeles, will lose an important resource. According to Lowenstein, sales for their new mascara drastically increased last year after The Lipstick Lesbians, an influencer duo, shared a TikTok video about it. In response, Lowenstein has explored other options, such as Flip, a lesser-known shopping platform that rewards users for reviewing beauty products and making purchases from featured brands.

Another cosmetics company, Oakland, California-based e.l.f. Beauty, created a viral sensation with a 2019 TikTok campaign that used an original song to explain the company’s name stood for “eyes. lips. face.” E.l.f. also was one of the first beauty brands to join TikTok Shop, the platform’s e-commerce arm, during the U.S. beta testing.

Kory Marchisotto, the chief marketing officer of E.l.f, has stated that the in-app shop has been successful. This feature enables viewers to purchase products directly from seller accounts and videos. However, Marchisotto also pointed out that other platforms such as Instagram Reels and YouTube Shorts also offer real-time videos, which was previously only available on TikTok.

Marchisotto stated that we will utilize the significant strength we have amassed and use it to advance wherever our community desires, as they have consistently been the guiding force that drives us forward.

Certain marketing firms are advising companies to take necessary precautions in the event that Congress makes the decision to ban TikTok. Edward East, the founder and group CEO of Billion Dollar Boy, a New York influencer marketing agency, has suggested to clients that they diversify their spending on influencers across various platforms.

According to Nicla Bartoli, the VP of sales at The Influencer Marketing Factory, popular TikTok influencers in the beauty and fashion industry are still active on the app, but are also sharing unique content on other social media platforms like Instagram and YouTube and giving more focus to their other accounts.

According to Jasmine Enberg, a leading analyst at research company eMarketer, a ban on TikTok would have a more significant impact on businesses in the present day compared to a few years ago. Despite competition from Instagram Reels and YouTube Shorts, Enberg believes they have not been able to replicate the success of TikTok videos in terms of driving sales.

According to her, while the technology can be duplicated, the culture cannot be recreated and people may not behave in the same way on TikTok.

Based on eMarketer’s data, TikTok earns less advertising revenue compared to Instagram and Facebook but is expected to overtake them in terms of the percentage of users who make a purchase through the platform.

“I believe the ramifications will be experienced by all,” said Enberg in regards to the potential removal of TikTok. “However, it will have a significantly greater impact on small and medium businesses, as well as businesses founded by creators.”

Toy company Cepia LLC, which was behind the 2009 holiday hit Zhu Zhu Pets, began investing in TikTok a decade later with the launch of Cats vs. Pickles, a collection of plush toys. Compared to other social networks, the platform has proven the best for telling stories about products and building a community of fans, Laura Frerichs, Cepia’s head of marketing, said.

A recent event at FAO Schwarz in Manhattan showcased Decora Girlz, a new line of fashion dolls from a small company located in St. Louis, Missouri. Thirty influencers, mostly children with a sizable following on TikTok, were invited to attend.

After the launch, Cepia reported that the Decora Girlz line generated over 53 million social media views or impressions, including posts related to the dolls on various platforms.

However, Frerichs noted that the toy industry is accustomed to adjusting and would continue to do so in a market without TikTok. In the past decade, Cepia’s marketing efforts were primarily targeted at three television channels: Nickelodeon, Cartoon Network, and the Disney Channel.

Frerichs remarked that the world has undergone rapid change.

Deborah Mayer has been selling new and used designer handbags and other items from her home in New Jersey for 16 years. She is well aware of the challenges that come with running a business. In the beginning of last year, TikTok approached her to participate in the live component of their TikTok Shop.

According to Mayer, her sales have increased by 50% since October primarily due to the sales made during Debsluxurycloset’s live-streamed showcases, which often attract over a thousand viewers. She believes that currently, 60% of her income is generated through TikTok, making a potential ban extremely harmful.

Mayer, who is 52 years old, expressed that a significant amount of time and energy was dedicated to constructing this platform. She stated, “It would feel like a wasted year of work.”

On Wednesday, a Senate briefing about TikTok’s classification led to multiple senators expressing the need for urgent legislation that would mandate ByteDance to sell due to national security concerns. Some senators suggested exploring different options rather than hastily approving the House bill.

Some senators suggested that they should publicly address the potential threats of TikTok, as taking action in Congress may not be well-received by the app’s large user base.

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The report from Washington was contributed by Associated Press writer Stephen Groves.

Source: wral.com