Temperature Check: So, you built your startups marketing around TikTok. What if it’s banned?

Temperature Check is Hypepotamus’ recurring column that gauges the current state of the startup ecosystem. Through expert insights and trend analyses, it provides readers with a pulse on emerging challenges, opportunities, and industry shifts shaping the Southeastern tech and entrepreneurial landscape. 

Read Time: 3 minutes

Tech Topics In This Article: social media marketing, TikTok, startup marketing

 

TikTok, the app popular for dance challenges, cooking hacks, and its ability to turn random sounds into chart-topping hits, goes in front of the Supreme Court of the United States this week. And the implications of the TikTok v. Garland’s case could create ripple effects across the creator economy and the overall startup landscape.

The app’s influence on the business community is hard to deny. TikTok generated $14.7 billion for small and medium-sized businesses in 2023, contributing to an additional $24.2 billion in total economic activity. Startup businesses have poured a growing percentage of their marketing budgets into the platform. TikTok Shop and TikTok For Business have helped young brands get in front of customers in the highly competitive ecommerce space. Its algorithm has helped connect the startup and VC community to unique content.

The Supreme Court will start to hear arguments on January 10, deciding whether a law banning the app violates the First Amendment rights of more than 170 million Americans who use the social media platform. Yes, talk of such a ban has lingered for many years. But Denish Shah, Founding Director of the Social Media Intelligence Lab and Executive Director of the Marketing RoundTable at Georgia State University, said this time is different.

“The reason for the ban is around national security,” Shah said, meaning there is a strong likelihood that the ban will go into effect later this month.

While the final decision is in flux, Shah said now is the time for TikTok business users to start preparing for what’s next.

 

Be Prepared, But Don’t Panic

Georgia State University’s Denish Shah

“Don’t stay in a state of denial,” says Shah, who spoke to Hypepotamus about the implications of an upcoming ban.

“From a consumer’s standpoint, consuming bitesize videos is now engrained into our daily ritual,” Shah added. “That’s not going away. So what businesses, especially small businesses, need to understand is that is that if they are relying only on TikTok as a social media platform, it’s imperative that they they get their presence set up on other platforms.” He pointed to YouTube and Instagram as places where short-form video content already has a following, making it a natural next digital stop.

But it is important for business owners not to panic during this potential transition period.

“Businesses and content creators can find some comfort from history,” Shah added.

India had 200 million active TikTok users in 2020 when a sweeping ban was put into effect on the social media platform.

“[Consumers] shifted to Instagram Reels and YouTube Shorts. And over the long haul, there were not many downsides” for businesses. That, of course, did come with short-term pains for the business community as they worked to transition their content strategies onto new platforms.

The outcome of TikTok v. Garland could reshape the digital landscape for businesses and content creators alike, underscoring the fragility of platform dependence. As the Supreme Court deliberates on what could be a landmark decision, the message from experts like Denish Shah is clear: Businesses must proactively diversify their social media marketing strategies to remain resilient. For startups and entrepreneurs across the Southeast and beyond, this moment serves as a reminder to stay agile, anticipate change, and lean into the broader shifts that define the ever-evolving tech industry.

 

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Featured photo from Unsplash