As U.S. lawmakers weigh a doable TikTok ban, the ByteDance-owned short-form video app launched an economic impact report on Thursday. In it, the corporate touts the platform generated $14.7 billion for small- to mid-size companies (SMBs) final yr, and an additional $24.2 billion in whole financial exercise, supported by small enterprise’s use of TikTok.
As well as, it says that over 7 million U.S. companies depend on TikTok and that 224,000 jobs have been supported by small enterprise exercise on the platform in 2023. Of these, 98,000 jobs have been supported immediately inside SMBs on TikTok. The states with the biggest impacts included California, Texas, Florida, New York and Illinois.
The research was carried out by the economics forecasting group, Oxford Economics. It measured SMB exercise on TikTok, together with advert spend and ROI, and leveraged census information and different measurements to return to its conclusions.
Whereas a report of this dimension and scope couldn’t be thrown collectively in a single day, the timing of its launch is probably going not coincidental.
In March, a bill that could ban TikTok handed within the Home of Representatives. President Biden mentioned he would sign it into law if it additionally passes within the Senate. Of concern to TikTok, is that the invoice gained bipartisan assist, passing the Home with a 362-65 vote, regardless of former President Trump’s change of place on the matter. The Trump administration had beforehand sought to ban TikTok, calling it a nationwide safety danger, however Trump now opposes a ban, saying that Meta would profit.
Meta is clearly getting ready for a doable future the place TikTok may very well be banned, if not spun out from ByteDance. On Wednesday, Fb was up to date to assist a new video player across its social network; it can advocate Reels, long-form and Dwell movies, however default to displaying them in vertical format, as on TikTok.
YouTube and different short-form video platforms might additionally achieve elevated publicity if TikTok have been to be banned, and will pave the best way for startups competing within the house, as effectively.
TikTok’s financial report is a transparent try to make a case for why the app needs to be allowed to proceed to function, noting that $5.3 billion in tax income final yr was supported by small enterprise exercise on TikTok, together with as a advertising and marketing and promoting platform.
The corporate additionally introduced quite a lot of case research the place enterprise homeowners declare that TikTok helped to drive gross sales, web site site visitors, and different types of extra income.
Tying the ban to the app’s financial impression is a strong PR technique — particularly since a gaggle of TikTok creators bought a decide to successfully block Trump’s TikTok ban in 2020 by saying it might have an effect on their skilled alternatives, like model sponsorships, and talent to make an revenue.
Although TikTok has been urging customers through in-app messages to call Congress to protest a ban, the invoice nonetheless faces a harder path to pass in the Senate — and extra so now that the Republican get together’s chief has reversed his place on the ban.
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