TikTok is set to be banned in the US creating a massive opportunity for rivals to plunder its runaway retail advertising revenues.
TikTok has fast become the go-to platform for fashion retailers looking to target Gen Z shoppers, seeing a raft of leading brands including Dior, Gucci, Balenciaga and Balmain all turn to the platform to reach new potential customers this year.
Despite brands flocking to the app, which has 800 million worldwide users nearly 300 million of which are under 24, TikTok is now facing potentially fatal legislation from the US government.
President Donald Trump has now issued an executive order which will ban any US companies from working with the app’s owner ByteDance.
This is due to security concerns relating to a law in China, where ByteDance is based, that allows its government to order tech firms to collect consumer data and send it to them.
The US ban will come into place in 45 days, and may yet see Microsoft come to the rescue and purchase the US and European arm of the app.
However, TikTok’s rivals have been quick to capitalise on the opportunity, aiming to fill the lucrative advertising void which could be left after its demise.
Instagram, itself a favourite for fashion retailers’ ad budgets, is now set to launch its own short-form video feature called Reels.
Like TikTok Reels allows users to record and edit 15-second videos, share them with their followers and make them available to Instagram’s entire community via Explore.
With an already widespread and active younger audience, Facebook-owned Instagram is ideally placed to pick-up the short-form video craze where TikTok started.