How Will a Possible TikTok Ban Impact Creators, Businesses?

The potential TikTok prohibition in the U.S. poses major challenges for content creators and small businesses who depend on the platform for growth, engagement, and revenue.

At a Glance

Small businesses could lose $1 billion in monthly revenue.
The Supreme Court considers TikTok’s parent company’s mandated detachment.
Creators are exploring alternative platforms.
The creator economy is projected to hit $480 billion by 2027.

Financial Impact on Small Businesses

Small businesses utilizing TikTok could face significant financial losses if the U.S. implements a ban, potentially losing over $1 billion in revenue each month. TikTok has proven instrumental for many small businesses, facilitating customer growth, advertising, and sales. Desiree Hill, owner of Crown’s Corner Mechanic, credits her expansion to the platform’s reach. She worries about the potential loss and its effect on her business’s ability to grow.

In response, businesses are eyeing platforms like Instagram Reels, SnapChat, and YouTube Shorts to compensate for TikTok’s unique capabilities. Building a dedicated customer database for direct marketing options is also being considered as a strategic pivot. However, business owners express concern over losing TikTok’s distinctive advantages.

Small businesses brace themselves for potentially disruptive TikTok ban. https://t.co/Qu352GCwIT pic.twitter.com/hGVztHyQeS

— North Bay Business (@NBBJ) January 2, 2025

Legal and National Security Concerns

The U.S. Supreme Court is tasked with deciding on the proposed TikTok ban, arising from a law requiring its separation from ByteDance due to national security concerns. This law faces challenges on First Amendment grounds. SCOTUS will be hearing arguments on the issue on January 10. If the government wins, TikTok plans to cease U.S. operations, bringing uncertainty to many creators’ careers and incomes. As a precaution, creators consider diversifying their content across platforms like Instagram and YouTube.

Many creators remain apprehensive about the repercussions. While some await the court’s decision before making substantial changes, others, like Crystal Lister, see the challenge in replicating TikTok’s functionalities elsewhere.

Transitioning to Alternative Platforms

Content creators are readying themselves for a potential TikTok ban by exploring alternative platforms to maintain their audience and income. The creator economy, partly driven by TikTok’s popularity, is projected to be worth $480 billion by 2027. This potential disruption emphasizes the platform’s influence on digital marketing and the economy. The situation prompts creators to back up their work and continue posting until a final court decision is reached.

“It is going to be a challenge if TikTok is banned because we’re losing all the functionality you want — the ability for a video creation, the ability to spread the word via social media. So we’ll have to use many other platforms to supplement what TikTok did in one,” Crystal Lister said.