This past week, the US House of Representatives passed a bill to ban the popular social media app TikTok if its current owner ByteDance did not divest ownership in 5 months.

While the debate on national security is not the topic of this blog article, we will focus on the implications this bill would have on business communications in the United States and, most likely, Canada.

TikTok currently holds a powerful position in the advertising industry, generating ad revenues of roughly 18 billion USD in 2023. Before this bill was introduced, the social media app was projected to generate approximately 54 billion USD in ad revenues by 2027.

TikTok has afforded small, medium, and large-sized businesses a unique platform by which they can reach prospective customers and ultimately grow their consumer bases. However, diversifying communication channels has become much more important, given the potential threat of a ban in the United States and possibly Canada.

Actions such as those observed in the House of Representatives this past week are something called a non-market force – simply put; this is a variable that one would not be able to consider when taking the social media landscape at face value.

Non-market forces can also cause platforms to adjust their terms of service and stances on certain topics over time. As governments experience changes of leadership, regulatory change can force the hand of platform owners. In the case of YouTube for example, such changes could lead to the demonetization of a YouTube channel, ending the generation of ad revenue.

When considering risk mitigation in any business context, it is always important to consider your strategy when dealing with non-market forces. Often, best practice is to be proactive rather than reactive.

Businesses should begin diversifying their presence and reliance on different communication platforms if they have not already. Consequently, content expenditures may also need to increase as each platform possesses its own intricacies, but that is a strategic investment decision that each business should consider, given its own circumstances.

If you are interested in learning how seasoned PR professionals can help diversify your communication channels most efficiently, contact the Daisy Consulting Group for a free consultation.