Advertisers prepare for potential TikTok ban due to US court upholding divestment law

From Investing.com: 2024-12-06 20:10:59

TikTok advertisers remain calm despite U.S. appeals court upholding law requiring divestment or ban of Chinese-owned app. ByteDance must sell U.S. assets by Jan. 19 or face unprecedented ban jeopardizing billions in ad revenue. TikTok plans to seek injunction to stop ban, but advertisers are preparing for potential reallocation of investments. Meta Platforms and Alphabet stand to gain TikTok’s ad revenue if banned, say experts.

Horizon Media working with clients to prepare for potential TikTok sale or ban. Meta Platforms and Alphabet could benefit from TikTok’s absence, but advertisers unlikely to abandon ship prematurely, says digital advertising expert. TikTok’s U.S. ad revenue expected to hit $12.3 billion this year, compared to Meta Platforms’ projected $159 billion in 2024. Potential shakeup in social landscape if TikTok is lost, says analyst.

Stocks rise on news of potential TikTok ban. Meta Platforms shares hit all-time high of $629.78, up 2.3% at $622.85. Alphabet shares up 1.1% at $176.21. Trump Media & Technology rises 3% to $34.78, Snap shares up 1.89% to $12.40. Market anticipates impact on social landscape if TikTok is banned, benefiting competitors and impacting small businesses.



Read more at Investing.com: TikTok advertisers stay put after US appeals court upholds law forcing sale By Reuters