What Does Australia’s TikTok Ban Mean for Advertising?

In the lightspeed pace of social media, trends are fleeting. As a brand, it’s hard to know what the correct course of action is - do you go with what is big and new, or stick to the old faithful? 

TikTok has become a social media sensation in recent years, with millions of active users and an ever-increasing popularity among young people. It’s one of the fastest-growing social media platforms in the world, and countless brands have made use of TikTok to connect with audiences.

According to Sam Kelly, managing director at Hellosocial, the agency “have seen a 231% increase in platform spend across our major clients over the past 12 months alone. For the 18-34 cohorts we’ve seen TikTok deliver the most impactful brand lift results out of any digital channel in this period. There is no questioning its popularity and marketing effectiveness”. 

However, very recently the Australian Government has passed a ban on TikTok, no longer allowing the app on government-issued devices for cybersecurity fears. Australia is not alone in this ban - Canada, the US and the European Commission have also banned the app on government devices. 

Although a full nationwide ban has not been implemented, talks surrounding the possibility have been had. Whilst the likelihood of this coming to fruition is minimal, the threat is still hanging over the active users of the app. 

To grasp a better understanding of what this new fear looks like for companies whose advertising strategy includes TikTok as a main social channel, LBB talked to a few people who have their heads in the game. 

Adam Ferrier, chief thinker & founder at Thinkerbell, notes that “government intervention of this scale will no doubt have an impact on advertisers. The whole platform's future is now under threat, and this obviously makes for very shaky foundations. 

“This makes it near impossible for advertisers to take a strategic approach to use the platform. Further, looking at how the other tech platforms are mimicking the successful features of TikTok suggests they don't think TikTok has much of a future either.” 

But, looking at the bigger picture, Adam forsees fascinating knock-on effects if advertisers were to look beyond TikTok. “If the platform gets closed down, the next platform with the most similar features will arguably pick up most of the users. It will be interesting to see where the Australian government employees go to scroll meaninglessly, now that they can't kill time on TikTok.”

Meanwhile, WPP chief executive Mark Read has recently been quoted in a Financial Review article stating that individuals may choose to avoid using the platform, advertisers will continue to follow audiences. His statement suggests a confidence in the platform's staying power, a confidence that others may not see... You can read the article here

 

Providing an alternative perspective, Sam continues: “For the time being it's business as usual, however the risk appetite across major brands in Australia is low and the herd mentality is high. It’s often a game of dominos in that if one big US brand pulls out the rest often follow, and then we feel the ripple down under. Essentially no one wants to be wrong. We’ve seen this across recent Facebook and Twitter blackouts.” 

What’s unique about TikTok, however, is its geopolitics. “TikTok’s sharing permissions are no more advanced than any other social platforms in that it can request user contact lists, access calendars, scan hard drives and geolocate devices”, he says. “TikTok poses no more risk than any other social app in terms of what data it’s collecting. The concerns rightly or wrongly lay around where the parent company is headquartered”.

 

For now, however, Sam is not suggesting that any brand should take immediate action. “We are yet to have any brands pull out or sought to encourage any brands to do so”, he says.

The rapidly changing landscape of social media can make it difficult for brands to decide where to focus their advertising efforts. TikTok has emerged as the most popular platform for reaching younger audiences, but there’s no denying that recent government bans have sparked a conversation about its future.

Ultimately, the key to success will be a willingness to adapt and experiment - something that has always been needed to survive and grow on social media.