The internet was thrown into chaos on January 19 when TikTok, a cornerstone of modern social media and cultural expression, was banned in the United States.
The move, which was aimed at addressing national security concerns linked to its Chinese parent company, ByteDance, saw the app temporarily vanish from app stores and become inaccessible to its 170 million American users. However, in a dramatic twist, the ban lasted only a few hours before President-elect Donald Trump announced its reinstatement, prompting waves of reactions from influencers, brands, and industry leaders worldwide.
Industry professionals were quick to weigh in on the potential ramifications of the ban and its brief reversal.
The Global Creator Economy in Flux
Suzie Shaw, CEO of We Are Social Australia, highlighted the app’s centrality to creative content. “TikTok has been a cornerstone for creative content, particularly for younger audiences, and it’s where many influencers and brands have seen exceptional engagement and growth. While the ban is limited to the U.S., it could trigger a shift in the global creator economy,” she said.
Shaw also noted the rapid pivot by creators to diversify their presence across other platforms like Instagram Reels and YouTube Shorts, as well as emerging apps such as Lemon8 and RedNote, which recently added 700,000 new users in just a few days.
Blair Ellis, account director at Hopeful Monsters, described the ban as a reminder of the fragility of digital platforms.
“The TikTok ban in the U.S., brief as it was, is a sobering reminder that the digital platforms we’ve come to rely on for connection, creativity, and commerce can also be pulled out from under us like a proverbial rug,” he said.
Ellis emphasised the importance of diversification in response to the ban. “TikTok’s meteoric rise has been a boon for the creator economy, but moments like these underscore the importance of diversification. It’s a bit like investing in the stock market: you wouldn’t bet everything on a single stock, no matter how promising. Brands and creators will need to hedge their bets, spreading their content and engagement strategies across multiple platforms—an approach most have already begun to adopt”.
“In the long run, this kind of diversification could prove beneficial, forcing the industry to innovate and explore new ways to connect with audiences. After all, nothing pushes creativity quite like necessity,” Ellis added.
Tom Maynard, co-founder of Amplify, echoed these sentiments, emphasising TikTok’s irreplaceable influence. “TikTok is where culture and community start. It has an influence that other platforms can’t easily replicate,” he remarked, reinforcing the app’s unique role in shaping cultural moments.
Ben Gunn, chief revenue officer at Fabulate, drew attention to the resilience of the creator economy despite the brief shutdown. “TikTok has been a big driver of the broader short-form video revolution. In Australia alone, influencer marketing has grown to more than $800 million, according to Statista. That economy is not just going to disappear—it will continue to evolve,” he said.
The Fallout for U.S. and Australian Markets
For Australian creators and brands, the U.S. TikTok ban sent ripples through the local market. Sam Kelly, managing director of Hello Social, pointed out the interconnectedness of the global creator economy.
“American brands, sub-communities, and creators make a significant contribution to TikTok culture, content, and audience. By removing this entire ecosystem, it will reduce the diversity and vibrance of the platform,” he explained.
Kelly also highlighted the implications for Australian content creators, who rely heavily on U.S. audiences to amplify their reach. “Across our Australian clients’ biggest organic posts, you’ll see a U.S. audience making up around 30 per cent of the distribution on TikTok. Without that audience, the platform’s reach trajectory could falter,” he noted. This underscores the global impact of a single market’s restriction.
“We’re already seeing local creators push hard into new channels to spread the risk. The U.S. TikTok scare has heightened the need to follower-bank across four or five platforms,” he explained.
The Impact on Advertising Strategies
The brief ban prompted discussions about how brands might reallocate their advertising budgets and reshape their marketing strategies. Shaw noted that while TikTok remains active in Australia, marketers are keeping a close eye on global developments. “In markets where TikTok is restricted, brands will likely diversify their ad spend across platforms that support short-form video content. Instagram Reels and YouTube Shorts are natural alternatives due to their scale, advertising capabilities, and creative formats,” she explained.
Shaw commended creators for their agility in navigating these changes. “Creators have always mastered the art of engaging with audiences across multiple platforms, and this agility will help them navigate these changes,” she said.
Maynard agreed but pointed out the challenges in replicating TikTok’s unique community and cultural impact. “Channels like Reels and Shorts lack the community and cultural influence that TikTok has, so it’s going to be hard to replicate that aspect. However, marketers will always find a way to spend money,” he stated.
Kelly added that the shift could even benefit local creators. “This might improve local creators’ Australian audience percentages, which could drive perceived value. But the biggest potential impact will be to content performance, given the U.S. audience volume won’t be there to drive early engagement,” he said.
The Political Landscape and Future Uncertainty
The political drama surrounding the ban and its reversal also raised questions about the broader implications for platform regulation. Shaw described the situation as a “trigger” for debates around data privacy and national security. “While data privacy and national security concerns have sparked discussions around TikTok in Australia, a full-scale ban remains unlikely at this stage,” she said.
However, she acknowledged that upcoming elections could amplify these debates, urging brands and creators to stay informed.
Gunn remained optimistic about TikTok’s prospects under the incoming U.S. administration. “President Trump is on the record saying he wants TikTok to stay around and is certainly sending that message in and around the inauguration. The economic value is unquestionably being recognised,” he noted. However, he cautioned that politics remain in flux, leaving room for further uncertainty.
In the words of Maynard, the recent events are a wake-up call. “The reversal of the ban underscores just how important the platform is. All the noise over the past week further crystallises the impact TikTok has on the world,” he concluded.
The brief TikTok ban and its swift reversal have highlighted the platform’s central role in the global creator economy and sparked crucial conversations about platform regulation, data privacy, and the resilience of the influencer marketing ecosystem.
As creators and brands adapt to an ever-changing digital landscape, TikTok’s future in the U.S. remains uncertain.
