How Retailers Should Approach TikTok (and its Alternatives) Amid a Looming Ban
On April 24, President Biden signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act, which had one immediate, if not explicit, purpose: Wrest control of the social media application TikTok from the potential influence of the Chinese government.
Whether founded or unfounded, concerns that China might be willing and able to access sensitive user data through the app — and thereby potentially threaten national security — prompted the U.S. government to take action. The law would force Beijing-based parent company ByteDance to sell by Jan. 19 or face a ban in America, although an in-progress sale and ByteDance’s countersuit currently in the U.S. Court of Appeals could affect that date.
For brands, the legal battle has significant ramifications. TikTok is used for promotion by 54 percent of business owners, the app is used by 26 percent of marketers worldwide, and TikTok Shop is used by more than half a million merchants in the U.S. alone. Retailers have come to rely on TikTok like few other platforms. How should they move forward amid the looming ban and, in the event it sticks, begin approaching life after TikTok?
Should Retailers Still Be Using TikTok?
The short answer is “yes.” TikTok remains the fourth-largest social media platform by number of monthly active users, and it continues to grow its user base. The app’s built-in video editor is the current gold standard for advertisers and retailers, with its features, organic reach and flexibility of content use allowing any type of business and any experience level of user to create valuable video content. An ongoing commitment to TikTok is still a very low-risk, high-reward investment for retailers.
Should Retailers Begin Diversifying Their Social Media Presence?
The truth is, this should already be happening among most retailers. It’s so easy to create content on TikTok and migrate the best of it to platforms such as Facebook and YouTube and Pinterest, there’s little excuse not to. And because short-form vertical content in general doesn’t appear to be at risk of going away anytime soon, it’s wise to begin diversifying your presence across platforms if you haven’t already. It’s worth your while and, best of all, simple.
For as long as it lasts, TikTok Shop is a go-to destination for retailers. However, Reels and YouTube Shorts and others provide additional options, which could become a greater priority over time. In any case, the type of content retailers should be most focused on is user-generated content (UGC). A lot of retailers think they need a big budget and glossy content created by a fancy agency, but the most-viewed videos on TikTok are filmed straight from users' phones. People don’t fully engage with professionally produced content, but they love seeing how real people use products in their daily life. It’s easy to work with content creators, finding them via TikTok’s search engine and through Creator Marketplace, then create authentic content that works on TikTok and across other social platforms.
How Can Retailers Begin Leveraging New Tools Such as AI?
Artificial intelligence is now built into every social media platform, so retailers are already using it. When a social post goes live, it now extends beyond a brand’s followers to become recommended content for other users who might be interested. AI can also be used to help identify a retailer’s target audience, show potential ad reach, and even plan out entire campaigns.
The possibilities are mind-blowing. Wayfair’s Decorify, for example, enriches the customer shopping experience by using AI-generated imagery to place products in the homes of potential customers. Retailers are connecting with and creating a purchase channel for users who have already uploaded thousands of images of their homes to better visualize them full of their products. Better yet, the experience can help reduce product return/refund rates, as customers can get a stronger sense of the end result before purchasing. Many other retailers have already adopted AI chatbots to help answer customer questions, aid in the shopping process, and recommend additional products.
Logan Welbaum is the founder of Plai, an AI-powered advertising platform that helps businesses advertise across social media platforms.
Logan Welbaum is the founder of Plai, an AI-powered advertising platform that helps businesses advertise across social media platforms. Plai is the very first “text-to-ads” platform and has aided business owners in creating over 30,000 ad campaigns at a low cost, while still retaining effectiveness.
