Amid discussions about a potential TikTok ban in the United States, the popular short-form video app, owned by ByteDance, has published an economic impact report. The report emphasizes that TikTok contributed $14.7 billion to small and mid-sized businesses (SMBs) in 2023, along with $24.2 billion in overall economic activity stemming from small businesses using the platform.
The report highlights that over 7 million U.S. businesses rely on TikTok, supporting 224,000 jobs in 2023, with 98,000 jobs directly linked to SMBs on TikTok. The impact was most significant in states like California, Texas, Florida, New York, and Illinois.
Conducted by Oxford Economics, the study analyzed SMB activity, ad spending, ROI, and utilized census data for its assessments. The timing of the report’s release aligns with recent legislative developments regarding TikTok’s potential ban.
In March, a bill passed in the House of Representatives that could lead to TikTok’s ban, pending Senate approval and President Biden’s signature. The bipartisan support for the bill, despite previous discussions about a ban under the Trump administration, has heightened TikTok’s concerns.
Anticipating potential restrictions, Meta (formerly Facebook) has updated its platform to promote Reels, long-form, and Live videos in a format similar to TikTok. This move suggests preparations for a scenario where TikTok might be banned or separated from ByteDance.
TikTok’s economic report serves as a persuasive argument for its continued operation, highlighting its role in generating tax revenue, serving as a marketing platform, and driving business growth. Case studies presented in the report demonstrate how TikTok has helped businesses boost sales and online traffic.
By linking the potential ban to its economic impact, TikTok aims to garner public support and influence legislative decisions. However, the bill’s fate in the Senate remains uncertain, especially with shifting political dynamics around the ban.
