Advertisers are committed to continuing to spend on TikTok because to its tremendous popularity with consumers, despite predictions of a future ban in the United States due to national security concerns, according to ad specialists.

TikTok, which is owned by Chinese tech firm ByteDance, is battling a ban in the United States after senators filed legislation that would give President Joe Biden’s administration authority to block apps that pose security hazards. Multiple governments have already banned the short-form video app from government-issued phones.

TikTok will conduct an advertiser presentation in New York on Thursday evening as part of NewFronts, an annual week of events where social media and streaming video platforms announce new content and capabilities for marketers.

Despite concerns about its Chinese ownership, Insider Intelligence predicts TikTok’s ad sales will expand 36% this year to $6.83 billion.

According to Ryan Detert, CEO of Influential, an influencer marketing agency, “none of our clients are saying ‘don’t spend money on TikTok,'” he added.

“There’s no contagion that we’re seeing,” he added. Influential has worked with brands including Pepsi and the NFL.

Two media buyers from two different big ad agencies told Reuters that Washington’s examination of the app had had no effect on their clients’ TikTok plans. The two buyers spoke on the condition of anonymity to disclose their TikTok ties.

TikTok will introduce a new ad model on Thursday that will allow companies to display advertisements next to content from publishers like as BuzzFeed, Dotdash Meredith, and NBCUniversal, and will offer those publishers a 50% part of ad revenue.

“TikTok is irreplaceable unless and until (advertisers) have to replace it,” said Mark DiMassimo, founder of creative agency DiMassimo Goldstein, which has worked with brands such as Hello Fresh and Samsung.

Nonetheless, numerous media buyers admitted that the potential of a US ban will be the “elephant in the room” during the advertiser presentation.

TikTok announced on Tuesday that its head of U.S. trust and safety would leave the firm the following week, leaving the app without a senior executive who handled content moderation and the creation of safety solutions for the division that stored U.S. user data.

“There’s a lot of uncertainty combined with uncertainty in general about the economic situation,” said Stephani Estes, chief media officer at digital marketing agency Goodway Group. “You have to consider the what-ifs.”

TikTok stated that it is dealing with advertiser issues “head on in an open, fact-based, and ongoing dialogue.”

(Adapted from AlArabiya.net)

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