
"A new, U.S.-based version of TikTok would need to be vetted and understood before advertisers feel confident investing large amounts of advertising dollars in the platform, even if it maintains TikTok's core functionality," said Courtney Werpy, associate director of performance media at Collective Measures."
"For now, what marketers know is murky at best. TikTok's U.S. operations, which are still wholly owned by ByteDance, will continue to handle revenue-generating businesses like advertising and e-commerce, according to reports. Meanwhile, a new U.S. based joint venture, majority owned by American investors, will control the app's user data and oversee retraining of the algorithm licensed from ByteDance."
"And that's where the questions begin - who will lead the app in the U.S., how will it be governed and will the shift will affect performance. So far, TikTok's reps haven't offered much clarity on any of the logistics around its future U.S. existence, but instead continue to remain calm, cool, and push marketers to spend more next year."
Advertiser confidence in TikTok's U.S. outlook remains low despite apparent regulatory signals. Marketers face significant uncertainty about who will oversee and govern the app, how user data will be controlled, and whether algorithmic retraining will affect ad performance. U.S. operations are reportedly still wholly owned by ByteDance and will continue handling advertising and e-commerce revenue, while a new U.S.-based joint venture, majority owned by American investors, will control user data and oversee algorithm retraining licensed from ByteDance. TikTok representatives have provided limited logistical clarity and continue to encourage increased ad spending. The Q4 timing complicates budget decisions and is prompting some clients to plan cuts.
Read at Digiday
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