With less than two weeks to go before a possible ban on TikTok in the U.S., the social network has assured that it will refund advances paid to marketers for ads if the ban takes effect. Amid the pressure of the potential ban, the company’s internal team is also going through significant changes with the resignation of its head of ad sales in North America.
According to an internal company memo, Sameer Singh will remain with TikTok until the end of February. Singh joined ByteDance in 2019, Singh has been a central figure in leading the social network’s ad business in the U.S and Canada. When he joined TikTok, he oversaw the company’s monetization efforts in India, managing the impact of the app’s 2020 ban in that country. He also played a key role in expanding the app’s presence in markets such as Brazil, Southeast Asia and the Asia-Pacific region. Prior to his position at TikTok, he served as GroupM’s South Asia CEO.
The U.S. government has threatened to ban the social network unless ByteDance sells the app, citing fears that the Chinese government could access user data that would put national security at risk. Industry experts have claimed that the impact of the ban on advertisers and content creators could be significant – it would alter the digital ad landscape, forcing marketers to adapt their strategies to alternative platforms such as Facebook and Instagram. According to Canadian media experts, while this is a U.S. ban, for advertisers in the country who are part of a U.S. structure or follow a U.S. strategy, it could have repercussions. If the app’s most popular content creators are no longer able to use the platform, Canada could also see a massive decrease in user-generated content. This would affect usage and viewership, especially within the younger demographic. A ban would also impact product discoverability in Canada.
The Supreme Court is set to hear arguments on the potential ban on January 10. Meanwhile, TikTok will be present at the Consumer Electronics Show in Las Vegas this week, where executives will discuss the best ways for marketers to use its platform. The potential ban would go into effect on January 19.
