As the possibility of a TikTok ban in the U.S. increases, the popular short-form video app has released an economic impact statement aimed at highlighting its contribution to small and medium-sized businesses (SMBs). The report, conducted by Oxford Economics, highlights TikTok’s role in generating $14.7 billion for SMBs last year and supporting more than $24.2 billion in total economic activity in the United States.
Key points:
- TikTok’s economic impact report highlights its significant contribution to small and medium-sized businesses, with $14.7 billion generated by businesses in total economic activity supported by the platform in 2023, and $24.2 billion in total economic activity.
- More than 7 million U.S. businesses rely on TikTok to support 224,000 jobs, 98,000 of which are directly within SMBs on the platform.
- The report, conducted by Oxford Economics, analyzed TikTok’s SMB activity, ad spend, and ROI using census data and other measures.
- The timing of the report’s release coincides with legislative efforts to ban TikTok, including a bill passed in the House of Representatives with bipartisan support.
- TikTok has faced concerns about its national security implications, but former President Trump, who previously sought a ban, is now opposing it.
- Facebook’s parent company, Meta, appears to be preparing for a possible TikTok ban by updating its platform to support short video content.
- TikTok’s economic report serves as a PR strategy to advocate for the app’s continued operation, highlighting its role in generating tax revenue and creating marketing and advertising opportunities for the company.
implication:
- TikTok’s economic impact report strengthens the case for a potential ban by showing its positive contribution to business, job creation, and tax revenue.
- The report aims to win support from lawmakers and the public by highlighting TikTok’s role in supporting small businesses and promoting economic growth.
- Despite TikTok’s efforts to rally users to protest the ban, Senate passage of the bill remains uncertain, especially given the changing political landscape and shifting positions from key figures.
conclusion:
TikTok’s Economic Impact Report highlights TikTok’s importance to the U.S. economy and seeks to influence policymakers to keep the app running. As legislative discussions continue, TikTok’s efforts to highlight its positive contribution to business and job creation may impact the outcome of potential regulatory action.
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