Over the weekend, TikTok temporarily suspended its US operations following a ban by the American government. In this op-ed, Fabulate’s Ben Gunn breaks down a fluid situation and asks what are the lessons for creators and marketers alike.
Well that was interesting to watch. The past few days have seen growing angst about the banning of TikTok by the US government and what that could mean for the creator economy.
For a humorous yet insightful summary of some US creators’ concerns over the weekend check out the excellent video Amalfi Jets TikTok account:
@amalfijets Client needs to fly to China, for a great cause. #FlyAmalfi #PrivateJet #Travel
TikTok has already restored services following Donald Trump’s promise of a reprieve on the US ban but it’s still a very fluid situation. Creators and marketers can take some comfort from a couple of things: firstly TikTok and its video editing app Capcut was only down for around five hours. Also, TikTok’s CEO Shou Chew is attending Trump’s inauguration and is set to be given a prominent spot on the front dais—an unusual move if the intent were to remove the platform.
Even the tone of the way some TikTok execs shared the news that they were suspending suggested there was an interesting game at play over the weekend.
TikTok’s important role in the creator economy
Before I get into the lessons and what happens next it’s worth reflecting on why this matters. According to Goldman Sachs, the global creator economy is projected to double in the coming years, reaching US$480 billion by 2027. Locally the Australian creator economy is worth some $800m and growing at some 30% a year (Source: Statista).
TikTok lives at the heart of that creator economy. It is the platform, which perhaps more than any other, has driven the current short form video revolution we are all living through. You just look at how other platforms have “TikTokified” their platforms in recent years (and it was no mistake that Elon Musk mused overnight about bringing X’s video platform Vine back).
It has also led on other important product development areas, like the integration of AI, that are important in the creator space.
Lessons for creators and marketers
The stakes are exceptionally high for creators, many of whom are often sole traders/small businesses and are vulnerable to these changes (there will have been some Aussie TikTokers who were potentially at risk of losing 20-30% of their audience over the weekend as a result of this US ban).
All that being said, the ban was long mooted and many creators had been preparing for it.
While I don’t believe Rednote will be the solution in the event a worst-case scenario eventuates, we need to recognise that professional creators mostly have presences across all the main platforms – TikTok, Instagram and YouTube.
The coming months will be fascinating to watch. What is unlikely to change, regardless of how events unfold, is the growing power of influencer marketing and the importance of communities on these platforms.
As I mentioned earlier, the creator economy plays a significant role in the advertising industry both globally and in Australia. That wider trend isn’t going away although we should all recognise platform/regulator battles can and will continue to occur.
What should creators and brands alike both be thinking about? First, ensure that your content is diversified across multiple platforms to maintain audience engagement. This allows you to be well positioned if there is any audience migration or change.
Secondly you need to be asking how engaged your audiences are with you. The creators and brands who build loyal and engaged audiences will be well positioned for whatever happens next.
It is most definitely a fluid political situation but one thing that has been clearly recognised from the standoff is the economic importance of both TikTok and creator led marketing.
The key to success – as it has always been – remains a diversified presence across multiple platforms and fostering a loyal, engaged audience.
Ben Gunn is Chief Revenue Officer of Fabulate