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What a TikTok Ban Could Mean for Dealers

The digital media world is buzzing with speculation as the future of TikTok hangs in the balance. The platform, which sees users spending an astonishing 100 minutes per day engaging with content, outpaces all other major social networks in user interaction. For automotive dealers, this represents not just a channel, but a powerhouse for reaching potential customers. However, the recent bill signed by President Biden aims to force TikTok’s owners to sell or face a ban in the U.S.

The Powerhouse of Engagement

TikTok’s allure for advertisers is undeniable. The company is on track to achieve $8.66 billion in ad sales this year—a 31% increase from last year. Its short-form video format not only captures but holds consumer attention, making it a goldmine for targeted advertising efforts. With automotive dealers increasingly relying on digital platforms to drive their marketing, TikTok’s high engagement rates are not just beneficial but crucial.  

Short-Form Content: A Lasting Trend

The potential ban raises concerns but also highlights an irreversible trend in consumer content consumption. The format pioneered by TikTok—snappy, engaging, and succinct—has ingrained itself into internet culture. Platforms like Instagram Reels and YouTube Shorts stand ready to capture the wandering digital crowds if TikTok users need a new home, although they currently lag behind TikTok’s impressive engagement metrics. If the app disappears, these competing platforms are poised for growth. Dealers will be able to take advantage of the robust targeting tech offered by Meta and Google.

TikTok’s Resolute Stand

In the face of these challenges, TikTok remains committed to its advertisers. At its recent NewFronts presentation, TikTok reassured partners of its determination to combat the bill legally. The fate of the app will likely be decided in court. Until then, advertisers plan to continue full steam with TikTok campaigns that connect with its highly-active user base.

What This Means for Dealers

For dealership owners and executives, the message is clear: short-form video platforms aren’t going anywhere, and neither are their users. Whether the app of the future is TikTok, Reels, or something else entirely, users have shown an appetite for engaging content from both creators and brands alike. The situation is sure to evolve as we move toward the TikTok bill’s 2025 deadline, but you can rest assured that Strong Automotive will keep your digital marketing strategy optimized every step of the way.

John Paul Strong

John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.

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