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The Clock is Ticking on TikTok’s US Advertising Business

Jan 4, 2025·5 min read

Summary

TikTok is the dominant platform for shopping and CPG advertising, with these categories accounting for 22% and 18% of total US ad spend on the platform in 2024. Brands like Uber (30% of ad spend), Coca-Cola (25%), and DoorDash (25%) rely heavily on TikTok within social media, potentially pivoting to Instagram if banned. According to Sensor Tower, 8% of US social ad spend would redistribute to Instagram (+3ppts), Facebook (+1ppts), YouTube (+2ppts), and Snapchat (+2ppts), benefiting Meta and Alphabet.

During the January 18-19, 2025 shutdown, TikTok users increased time spent on Instagram by 16% day-over-day, more than other platforms. ByteDance allocated 77% of its US ad budget to TikTok, which would be lost in a ban. However, the company could shift spending to CapCut and Lemon8, which are growing rapidly in US downloads and monthly active users.

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