The popular Chinese-owned video-sharing platform TikTok is reportedly preparing advertisers and brand agencies for a possible ban of its app in the US, offering refunds for ad and marketing campaigns that are unable to run.
Although the advertising business of TikTok is still nascent, it has become a popular place for companies when it comes to marketing thanks to the app’s young tastemakers, who flock to it for showcasing their skills and creativity.
TikTok said it will continue to honor planned ad campaigns, refund any that it can’t fulfill, and would also work with major influencers to migrate to other platforms in the event of a ban, Reuters reported.
“We’re committed to being a trusted partner to brands, agencies, and marketers as we build TikTok for the long term. TikTok will be here for many years to come,” Blake Chandlee, TikTok’s vice president for global business solutions, said in a statement.
As per the latest inputs, some advertisers are making contingency plans and considering other apps to move their marketing budgets.
Brands have also started exploring TikTok rivals, which have seen a sharp jump in downloads in recent days.
It is worth mentioning here that two days ago, US President Trump signed an order that would prohibit US transactions with TikTok and WeChat, beginning September 15.
Notably, 45 days is the time span that the Republican President agreed to give Beijing-based ByteDance in order to negotiate a deal to sell its U.S. operations. Microsoft is also in discussions with ByteDance about the possible acquisition.