Social media has been a hub for many things from content creation to advertising. With the wide reach that platforms have, a lot of small to medium businesses have taken to social networking sites to promote and conduct business. Among others, TikTok has become a popular site for it.
TikTok Generating Billions for Businessess
It's a good strategy to maximize a brand's exposure through social media, especially now that some have certain features that allow them to sell those products directly. TikTok made it possible for sellers to arrange transactions within the app for easier purchases.
Based on the numbers that the company released, one can say that it has been a successful venture so far, with the site generating about $14.7 billion for small to mid-size businesses (SMBs) last year, as reported by Tech Crunch.
That's besides the overall $24.2 billion in total economic activity. The company also claims that around seven million US businesses rely on TikTok, and that 224,000 jobs were supported by small business activity on the site.
While most simply took advantage of the app's wide reach, about 98,000 jobs were said to be directly supported in SMBs within the site. In an economic report, it was shown that the company made $5.3 billion in tax revenue last year, further stressing the success it has brought in the US.
It's no secret that the right marketing strategies in social media can make a huge impact on how a business goes. There are even instances when businesses took off because of its popularity through the short-form video site.
Losing Business Through the US TikTok Ban
With a ban looming, some business owners who operate within TikTok are starting to get nervous. The app's restriction will make a bigger impact on SMBs that rely on advertising practices that cost less, particularly ads on social media.
It's not just small businesses selling their products as well. A lot of content creators make a living by posting content and relying on ad sales. With TikTok gone, they might have to rely on other social media platforms like YouTube, Facebook, and more.
In a way, this could encourage small business owners to join the fight against the ban. We already know that TikTok is not above asking its users to rally by their side, as it released a push notification asking users to contact their senators about the ban.
The House of Representatives has already approved the bill, which means that the decision will fall to the Senate next. Once the Senate approves, it's almost a guarantee that the ban will be enforced, especially with a national leader voting to ban the app as well.
US President Joe Biden already said that he would sign the bill when it falls to his lap, as per Reuters. Once that happens, the "Protecting Americans from Foreign Adversary Controlled Applications Act" will come into effect and TikTok will have no choice but to sell or stop its operations in the US.
