TikTok has been banned on government devices as well as on some college campuses due to national security concerns in the US. Over the last three years, brands have revamped entire strategies based on TikTok, which leaves the future of mobile and social media advertising in question. While the next steps are unclear, it does leave a big question mark on how brands will adapt to this now-familiar form of advertising.

Security vs. social clout 

Mobile advertising has grown significantly over the past five years, beginning to come into its prowess on Instagram with sponsored posts in 2013. However, TikTok took the world by storm due to its rapid popularity since the pandemic. 

TikTok began launching sponsored posts in 2020 which coincided perfectly with the "stay at home" stage of the pandemic. From its trends, dances, and viral sounds, it was a marketer's dream. Some of the more notable brand happenings of the last six months have been Duolingo's spicy mascot and the Tarte brand trip to Dubai—the range is exquisite. 

In 2021 TikTok generated $4 billion in ad revenue. With the implementation of their ads tool, it has become easier than ever for marketing teams to create relevant content on top of their paid promotions. 

In the G2 2023 Winter Grid® Report, TikTok Ads was the #1 Leader in Mobile Advertising. The Grid® represents the democratic voice of real software users rather than one analyst's subjective opinion, showing a significant preference over other tools in the space.

Aside from G2 data, the most interesting thing about TikTok is that the accounts themselves are living, breathing brand machines. Sure, you could do a sponsored ad, but the authenticity behind the platform is what is driving consumer purchase decisions. There's real trust behind the creators, which is hard to compete with and has, candidly, become a bit lackluster on other platforms. 

Yet, however alluring the clout of authenticity is, it comes at a cost. And unfortunately, that cost could be your data. 

What data is TikTok actually collecting?

While the app itself is a content-driven platform, it's important to note that the data it collects is vast and not all content-related. While data collection is a common practice (Google and Meta have been doing it for years), there is a bit more than that, as uncovered by Consumer Report late last year. 

The security firm Disconnect did a broad scan of about 20,000 websites looking for TikTok trackers, known as pixels, that are used to get information to better aid companies with their advertising targeting and the analytics behind it. It found that across a variety of sites (even ones with domain extensions ".gov" and ".edu"), hundreds of organizations share their data with TikTok. On top of that, the data collected includes "your IP address, a unique ID number, what page you're on, and what you're clicking, typing, or searching for, depending on how the website has been set up." 

Since TikTok will use that data to better serve ads to its users, it also begs the question, is there anything they aren't getting? TikTok has outwardly denied sensitive data, such as medical information and information about minors, for example, is being collected, but with no way to fact check these statements, consumers are at a loss. 

This type of data collection may not shock some, but the security concerns stem from TikTok's parent company—the Chinese-owned ByteDance. According to the Council on Foreign Relations, there is growing worry that the data being gathered can potentially be used by China's government to manipulate what US users are being fed by the algorithm or potentially for more nefarious purposes. 

TikTok is a global brand, which begs the question—are other countries banning it? According to the Council on Foreign Relations, the EU is attempting to investigate privacy violations, while countries like Bangladesh, Indonesia, and India have banned the app altogether. Since China doesn't allow the US version of the app to be used in the country (they use Douyin to maintain its strict internet censorship laws), they aren't too concerned. 

Bottom line: Will this impact mobile advertising?

Without a doubt, TikTok has made a name for itself culturally and in the marketing arena. It's hard to understand the value of audience and financial gain vs. privacy concerns when everyone is doing it. 

No regulation is being implemented for now, but talks of a US entity buying the app have long been in discussion. It is important to note that there's an active piece of legislation in the House of Representatives as of March 1, 2023, that would give President Joe Biden the authority to ban TikTok. What will come of this is hard to tell, but I have no doubt that the result will be that brands will continue to follow the market. 

If you currently implement TikTok campaigns as part of your marketing strategy, you're safe for now, but keep an eye on the horizon for swift changes and be agile. 

Edited by Shanti S Nair