*The following is a summary of an article originally published by Digiday on March 18th, 2024.
SEATTLE, WA - The U.S. House of Representatives put TikTok back in the hot seat last week when it passed legislation that would force the company to either divest from its Chinese-owned parent company or face a nationwide ban. The bill isn’t guaranteed to become law, but advertisers are nevertheless on edge - and trying to figure out what their future investment will, and should, look like.
Here’s what Kevin Goodwin, VP of Digital Marketing at New Engen, shared with Digiday:
“We don’t have many clients where TikTok is more than 5% to 10% of budget, and that’s on the higher side for a number of businesses as well. I think the short-term risk is not that significant. It’s not going to be incredibly hard to go replace that revenue. What are the long-term ramifications of that for brands? That’s a lot harder to say because what’s really hard to measure and replicate is the virality of TikTok and the cultural influence of it and how Gen Z’s specifically shops in a much more nonlinear way. So I do think there will be an outside impact relative to budgets of losing a platform like that.”
Read the full article on Digiday.
About Digiday
Digiday is a media company and community for digital media, marketing, and advertising professionals. We cover the industry with expertise, depth, and tone you won't find anywhere else. The Digiday team strives to produce the highest quality publications, conferences, and resources for our industry. Digiday is a Digiday Media brand.
About New Engen
New Engen is a digital marketing agency driving impact for brands across every phase of the customer journey – maximizing it, measuring it, and repeating it. Through a collective passion for building brands, a relentless desire to challenge the status quo, and deep digital expertise across hundreds of brands and verticals, we put our clients on the cutting edge of what’s possible in digital marketing.