Music industry giants and advertising executives alike have pledged their unwavering support for TikTok, despite the looming threat of a U.S. Senate bill that could potentially ban the wildly popular video-sharing platform within a year. This unwavering commitment stems from TikTok’s unparalleled cultural influence and its ability to catapult emerging artists into viral sensations, reshaping the landscape of music discovery for young audiences.
Craig Atkinson, CEO of digital marketing agency Code3, asserts that as long as TikTok’s massive user base remains engaged, “advertisers will ride it all the way until the door slams shut.” A similar sentiment is echoed by Adamm Miguest, CEO of Rapid Launch Media, who advises his clients to maintain their presence on TikTok for as long as possible.
Even Universal Music, whose artists abruptly vanished from TikTok in March due to stalled licensing talks, has recently resumed negotiations, a clear indication of TikTok’s enduring relevance and its ability to generate substantial revenue. The resumption of talks underscores the growing recognition that TikTok is a force to be reckoned with, regardless of the outcome of the proposed ban.
The significance of TikTok is further underscored by the decision of Taylor Swift, a Universal Music artist, to defy her label and return her music to the platform just weeks after its removal, recognizing the immense power and reach that TikTok commands. Johnny Cloherty, CEO of Songfluencer, a creative marketing firm that collaborates with renowned artists such as Dolly Parton and Miranda Lambert, aptly observes, “We have to ask, why did Taylor Swift do that? Even she acknowledges the power that TikTok yields.”
For musicians, the ability to gain traction on TikTok or similar platforms like Instagram Reels is crucial, as it often translates into increased streams on streaming services. According to Miguest, who has worked with artists such as Muni Long and Sueco, “From what I’ve seen, you have to get 10 to 20 times the amount of posts on Reels for it to even come close to translating to what you might get on TikTok.”
Tatiana Cirisano, a senior music industry analyst for Midia Research, further emphasizes TikTok’s dominance as the preferred music discovery source for U.S. teenagers, surpassing even Google’s YouTube. TikTok has consistently maintained that it does not and will not share U.S. user data with the Chinese government. The company’s expected legal challenge to the proposed ban reflects its determination to protect its users and its business interests.
In anticipation of TikTok’s potential demise, rival platforms are eagerly awaiting the opportunity to capture its massive user base and advertising revenue. YouTube has been particularly aggressive in targeting TikTok’s marketing budgets, actively soliciting advertising agencies to test its products against TikTok’s offerings. Recent surveys indicate that Gen-Z is increasingly turning to TikTok for information and business searches, potentially challenging Google’s dominance in the search engine market.
Spotify CEO Daniel Ek has also signaled the company’s commitment to short-form video content, announcing plans to integrate it into its music streaming service in 2024. Despite their loyalty to TikTok, advertisers are beginning to explore contingency plans, actively testing alternatives such as Instagram Reels and YouTube Shorts. However, as Atkinson points out, “None of them have quite garnered the attention that TikTok did.” The question remains whether any of these platforms can match TikTok’s cultural clout, with Midia’s Cirisano expressing skepticism that TikTok users would simply migrate to competitors.
Amidst the uncertain regulatory landscape, TikTok remains defiant, planning a glitzy evening presentation for advertisers in New York City next week as part of an annual event organized by the Interactive Advertising Bureau (IAB). As of Tuesday, there were no changes to the plans, according to the IAB.
