TikTok has reported an 80% year-on-year decline in cost per mille (CPM) for advertising, signaling a dramatic shift in the advertising landscape as brands diversify their ad spend due to the platform's uncertain future amid potential US bans. Advertisers are gravitating towards more stable platforms like Pinterest, which saw a notable 120% CPM increase, as well as Meta, YouTube Shorts, and Snapchat. Despite advertisers pulling back, TikTok maintains a strong user engagement, retaining 90% of its traffic even during a brief ban period, highlighting its continued potential as an effective marketing channel.
The shift to diversify ad spend due to TikTok's potential ban illustrates a significant transition in advertising strategies, as brands opt for platforms with stable user bases.
Advertisers shifting their spending to other platforms like Pinterest and YouTube reflects a strategic response to TikTok's volatile market conditions amid ongoing discussions of a ban.
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