President Biden has officially signed the bill giving TikTok's parent company, ByteDance, nine months to divest from the company or else the app will be banned from the US. While the fallout has yet to be seen, there is a potential for this legislation to affect businesses as many companies and entrepreneurs have used the popular social video app to market their products and services.
Front Row CEO Yuriy Boykiv joins Wealth! to break down the impacts a TikTok ban will have on businesses, both large and small, and their ability to market themselves and grow through user exposure.
"There are a lot of alternatives. At the moment, TikTok is a dominant player for attention, predominantly for Generation Z and Alpha. If you think about the monthly user base, it's about on average a million users per month. 100,000 of those are influencers so 1 out of 10 users are influencers and those influencers are driving a lot of demand for the products that are eventually sold somewhere..." Boykiv explains. "The idea that TikTok will be banned fully has not really registered yet, in my opinion, in marketers' mind. But even if it happens, because Instagram and Facebook, which is Meta (META) essentially, adapted to the vertical format of video, the idea is a lot of those same users and influencers will move to Facebook and Instagram."

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