Despite a US law threatening a ban—now delayed multiple times by the Trump Administration—and ongoing privacy and cybersecurity scrutiny around the globe, the TikTok era of social advertising marches on.
Far beyond its origins as a lip-syncing app for teens, TikTok has transformed expectations of social networks and become an essential platform for many advertisers.
Powered by a dynamic algorithm that quickly gauges individual user preferences and then curates a highly personalized “For You” page (FYP), TikTok doesn’t have its users tell the platform what they want to see: Rather, it tells them. Those users seemingly can’t get enough—and neither can advertisers, who have been drawn to the app for its unmatched ability to capture attention and spark engagement, especially with younger audiences. In blending entertainment, community, and commerce, the platform has become a powerful space for both brand storytelling and direct sales.
Of course, TikTok is not without its troubles and controversies. In 2024, former President Biden signed a bill into law requiring ByteDance to sell TikTok to a US company or face a nationwide ban. Since then, enforcement has been repeatedly delayed under President Trump, leaving the platform in a holding pattern. With the latest extension set to expire on September 17, TikTok is reportedly developing a US-specific version of the app in preparation for a potential sale—a shift that could leave advertisers operating on a platform different from the one they know today.
While TikTok’s future remains uncertain, advertisers haven’t pulled back on their investments in the platform. Here, we explore the evolution of this paradigm-shifting app through a collection of stats and facts. We’ll cover all the good stuff and all the ban-related stuff as we paint a picture of why TikTok continues to be the talk of the digital advertising town.
It is, quite literally, a multi-billion-dollar question: Just how did TikTok go from being a niche player to one of the most popular apps on the planet?
The reality is there is no single answer, but instead a combination of factors: simple and easy-to-use video creation tools that blur the metaphorical line between creator and consumer, a vast library of licensed music that allows users to easily enrich their clips with audio without fear of copyright infringement, and a community and collaborative feel within the platform (think hashtag challenges and Stitch). The model is so successful, in fact, that it has frightened Meta and YouTube (among others) into disrupting their own businesses—Instagram Reels and YouTube Shorts, anyone?
“Don’t make ads, make TikToks.”
That was the invitation TikTok laid out for advertisers when it opened its brand-facing wing way back in 2020. And with the company’s revenues skyrocketing, it appears that challenge has been gleefully accepted.
TikTok’s ad business made its first foray into performance marketing with lead-generation ads that empower brands to collect information from prospective consumers through forms and contests. Since then, TikTok has been busy expanding upon those offerings, rolling out formats like interactive add-ons, search ads, and collection ads that together play a fundamental part in the app’s monetization strategy.
TikTok has disrupted how an entire generation connects, shops, entertains and educates itself, and ultimately perceives the world. To understand why TikTok is so popular with Gen Z is to understand that generation’s most broadly-shared characteristics. For example, authenticity is one of this generation’s top values—which explains why the “messy realness” of TikTok resonates so well. Gen Z is also the first generation of digital natives, which means they are well-acquainted with digital advertising tactics and therefore naturally drawn to fresh ideas and creative storytelling (for example, unfiltered videos!). In other words, TikTok and Gen Z were made for one another.
TikTok’s expansion into search and commerce media indicate that the app is not content to simply sit in the realm of short-form video. The diversification of its portfolio could pit TikTok against the likes of Apple, Amazon, and Google as it transforms into a public square for news and commerce, in addition to entertainment.
After the US federal government and numerous states outlawed use of TikTok on government-issued devices (something many other countries have done as well), former President Joe Biden signed a law in 2024 forcing ByteDance to sell the wildly popular app or face an outright ban across the US. That law was upheld by the Supreme Court in January 2025, and TikTok briefly halted service in the US just before the divestiture deadline of January 19.
Then, on the first day of his second term, President Trump signed an executive order delaying enforcement for 75 days. He has since issued two more 75-day extensions, keeping TikTok operating for the time being while divestment talks continue. A wide array of potential buyers have been named in recent months, from Oracle to AI company Perplexity to social media influencer MrBeast.
To prepare for a potential sale, TikTok has reportedly been working on a new version of the app specifically for US users, with a rumored launch planned for September 5. For advertisers, the potential transition to a different version of TikTok presents a variety of weighty questions: With ByteDance repeatedly claiming that it won’t sell the algorithm that fuels TikTok (otherwise known as its “secret sauce”), how different will the new app’s algorithm be from the original’s? Will advertising profiles automatically be ported over to the new app, or will advertisers need to rebuild them? How will US user numbers be impacted?
As long as these questions remain unanswered, marketers may want to avoid overleveraging their TikTok spend and, instead, employ a diversified paid social strategies.
TikTok grew into a digital advertising powerhouse seemingly overnight. Its consumer appeal and high engagement rates across numerous verticals make it a worthy option for ad spending for a wide variety of marketing teams. But with the threat of a ban looming, marketers would be wise to start scenario planning and maintain flexibility with social ad buys so they can quickly pivot to an alternative video platform quickly if needed.
One thing is for sure: For now, at least, TikTok remains social media’s golden child—and there are great rewards available to those that get it right.
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Interested in learning about how to make the most of TikTok? Check out our webinar, Seizing the TikTok Advertising Opportunity, for guidance from TikTok advertising experts.