If you’ve been following the news, you’ve probably heard that TikTok will sell its U.S. operations to a new, mostly American-backed investment group in response to President Trump’s threat to ban the platform because of perceived national security threats if the platform’s Chinese ownership did not divest. But what does this mean for the average TikTok user and the small businesses that have become reliant on TikTok for marketing?
Understandably, brands and small businesses are worried about what this change could mean for their advertising strategies, as TikTok has become a pivotal platform for businesses looking to connect with young audiences. For one, the platform provides an incredibly engaged user base, enabling strategies like influencer marketing to have a significant impact on consumers. But perhaps more importantly, the app is structured around a unique algorithm that drives virality in a way that is incredibly valuable to brands, but that many other platforms have tried and failed to replicate.
Although businesses and influencers now understand that the platform will not disappear completely, there is still concern about the effects of these changes. Many brands are concerned that the new ownership of TikTok—a joint venture controlled by investors, such as Oracle, Silver Lake, and MGX—will interfere with the platform’s operations, especially regarding its algorithm.
However, for those in the know about social media marketing, this fear is misguided. Some experts believe this new venture will largely leave the algorithm as it is, understanding that disrupting the core value proposition for advertisers will have a negative impact on the new ownership as well. If the new owners change TikTok too much, they can expect a mass exodus of users, creators, and advertisers moving to other platforms that better suit their needs.
Will a change in ownership change TikTok?
As the founder and CEO of a research-driven consultancy designed to help brands connect with Gen Z and Gen Alpha audiences through influencer-led virtual experiences, I think brands and consumers have little to worry about. The U.S. acquisition of TikTok was entirely political and will not noticeably impact the user experience on the platform. Since the algorithm was already very well optimized, new ownership is unlikely to make significant changes.
In the deal proposed by the Trump administration, ByteDance, the Chinese company that retains a 20% stake in the control of U.S. TikTok operations, would continue to be in charge of the site’s e-commerce, advertising, and marketing functions. The new U.S.-based controlling entities would be responsible for collecting and storing American users’ data and moderating content for U.S.-based users. Because of this, the platform should largely remain the status quo for advertisers.
Since the user experience isn’t expected to undergo any major changes, neither will the creator experience, as brands and creators will still be creating for the same user behaviors. Creators and marketers will likely not notice a significant difference in what content performs well, and therefore, regular viewers are unlikely to notice any change in what they see. The usual trend cycles are likely to continue, and marketers’ tactics won’t need to change.
Opportunities for creators on the platform are not likely to change drastically either. As with most social platforms, TikTok will probably prioritize introducing more creator-centric features in the coming years, but it was already on track to do so anyway before the change in ownership.
What should brands be worried about with the TikTok deal?
However, just because the platform’s core operations are unlikely to change does not mean there will be no evolution. Content moderation will require a careful balance, as the new private companies controlling TikTok could, intentionally or unintentionally, influence the algorithm with a few simple adjustments.
One thing worth flagging is the increased risk that the platform will be politically weaponized under new ownership. While having such a significant share of Americans’ attention under Chinese control was risky, it could be even riskier to have it controlled by private investors with strong ties to the current administration. The existing algorithm favors polarizing content from both sides of the political aisle. It would not take much adjustment to disproportionately promote a single viewpoint to the majority of TikTok users, while burying content from political opponents.
Still, the new ownership of TikTok probably won’t have many immediate effects on advertisers. TikTok stays one of the strongest ways for brands to reach young audiences and consumers, and even under a new ownership group, it will continue to be a powerful tool in the marketer’s toolkit.
Henry Young is an 18-year-old influencer marketing strategist and founder of Avari, a research-driven consultancy helping brands connect with Gen Z and Alpha audiences through influencer-led virtual experiences. Starting his career at just 14 as a video editor for small YouTube creators, Henry quickly scaled his expertise, moving into viewer retention analytics, creator management, and later brand-side influencer strategy, managing campaigns valued at over $1 million and working with clients whose creators collectively reached over 10 million followers and 1 billion views.
Photo courtesy Ian Londin Photography.
