TikTok’s Big Shakeup: What Advertisers Need to Know About the U.S. Restructure
TikTok is facing one of the most significant transformations in its history. Following a new Executive Order signed in late September, the popular social media platform is set to transition to a U.S.-controlled company, a move that could reshape how users, creators, and advertisers engage on the app.
While the political backdrop has dominated the headlines, it’s the business implications that marketers and advertisers need to pay close attention to. Here’s what we know so far — and what it means for your digital advertising strategy.
The Basics: What’s Changing
- A new U.S.-based company will take over TikTok operations within the United States.
- Roughly 80% of ownership will belong to U.S. investors, and a government-appointed board member will oversee compliance and data privacy.
- A standalone U.S. version of TikTok may launch, running on a separate algorithm and data infrastructure from its global counterpart.
- The Executive Order allows until December 16, 2025 to finalize and implement the deal.
- ByteDance (TikTok’s Chinese parent company) has not yet confirmed participation, so final details remain fluid.
In short: TikTok will likely become two entities — one focused on the U.S. market and another continuing to serve international audiences.
Why This Is Happening
At its core, this restructuring aims to address data privacy and national security concerns. U.S. officials want to ensure that American users’ data is stored, managed, and governed domestically. Critics, however, argue that this change could disrupt free expression and user experience.
Regardless of the debate, advertisers need to prepare for operational changes that could affect targeting, performance, and platform reliability.
How Users and Creators Are Affected
As TikTok transitions, users and creators may experience temporary instability:
- Revenue loss: Creators relying on TikTok Shops and influencer partnerships could see short-term revenue dips.
- Audience migration: Users may spend more time on Instagram Reels, YouTube Shorts, or Facebook, where short-form content is stable and familiar.
- New content guidelines: Stricter ad and content policies could emerge, including potential restrictions on political content and enhanced youth safety requirements.
If you work with influencers or sponsor creator content, it’s worth diversifying your partnerships now.
Advertiser Considerations
The restructuring introduces new uncertainty for advertisers:
- Platform Fragmentation: If ByteDance retains control of ad systems, advertisers could face split buying platforms — one for U.S. TikTok and one for the global version.
- Algorithm Reset: A new algorithm would need to be trained from scratch, which means campaign performance may fluctuate as audience data rebuilds.
- Cost and Efficiency Shifts: Ad delivery, optimization, and audience modeling may initially be less efficient, potentially impacting cost per result.
Our recommendation:
Diversify your short-form video strategy now. Shift part of your TikTok budget into Instagram Reels, YouTube Shorts, and Meta placements to maintain audience reach while TikTok’s future stabilizes.
What Comes Next
TikTok’s evolution isn’t just a policy change — it’s a signal of the growing intersection between government regulation, data protection, and digital marketing.
For advertisers, the next few months will be about adaptation:
- Track TikTok’s official announcements closely.
- Test alternative platforms for content delivery.
- Monitor campaign performance and be prepared for algorithm shifts.
As always, KeyMedia Solutions will continue monitoring this developing situation and provide updates as new information becomes available.