DigiCom Dispatch: TikTok’s Uncertain Future and What It Means for Advertisers

TikTok has become a defining force in digital culture, but its future in the U.S. remains uncertain. The social media platform, owned by Chinese company ByteDance, has made headlines this year with a U.S. ban looming since January.

While the potential ban shocked many users, government officials and agencies have been alluding to the possibility since 2020, citing security concerns. That said, tides may be shifting, as the Trump administration has granted a second 75-day extension. Many saw this coming, predicting that the administration is actively seeking a solution that gives the U.S. more control over TikTok’s national operations.

Although the app’s future largely depends on agreements between ByteDance and the Chinese government, multiple U.S. companies, including Amazon and Applovin, have already placed bids to buy stakes in potential operational management.

What Does This Mean for Brands & Marketers?

With the app’s future uncertain, many marketers and clients have taken a step back. As a result, TikTok’s auction-based ad system has seen an 80% drop in CPM (Cost Per Mille) from Jan 2024 to Jan 2025.

Those who stayed on the platform have benefited from lower prices and reduced competition. However, as it becomes more likely that a deal will be reached, we may see a renewed influx of advertisers looking to take advantage of the low rates while they last.

That said, until the deal is signed, there’s no guarantee of TikTok’s long-term future in the U.S. Many brands have turned to comparable platforms like Instagram Reels, YouTube Shorts, Snap Commercials, Reddit, and Pinterest. Instead of sitting on their TikTok budgets, they’re diversifying their channels.

Take the Risk or Look Elsewhere?

With a second extension granted, it’s looking more likely that this will end in a deal between the U.S. government and ByteDance. So is advertising on TikTok still a major risk? Not really, but many advertisers are still waiting for more certainty before fully returning to the platform. In the meantime, those willing to embrace a little uncertainty may find success, at a fraction of the usual price.

Still, it’s important to have a backup plan. As marketers and users branch out, TikTok could lose its dominance in short-form content, opening the door for other platforms to grow. No matter what, focusing on a single channel is no longer a smart strategy. (Read more on multichannel marketing here)

Looking Ahead

As negotiations continue, marketers are left weighing risk against reward. The landscape may shift quickly, but for now, staying flexible could be the smartest move of all.

SO, WHERE DO YOU FIND THIS PARTNER?

Well, aren’t we glad you asked! We at DigiCom are obsessive data-driven marketers pulling from multi-disciplinary strategies to unlock scale. We buy media across all platforms and placements and provide creative solutions alongside content creation, and conversion rate optimizations. We pride ourselves on your successes and will stop at nothing to help you grow.

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