P&G and other advertisers to stick by TikTok unless clock runs out

TikTok

Major advertisers such as Procter & Gamble and Danone are committed to spending on TikTok as the viral video sharing platform faces a possible ban in the US following accusations of being a national security threat.

Brands which talked with journalists at our partner news agency Reuters stated they are, nevertheless, monitoring the situation and any consequences for their own campaigns.

While TikTok’s marketing business is young it’s attracted big names that aim to get to the millions of teens who use the app for dance challenges, makeup tutorials and lip-syncing videos.

Users are so involved in creating their own videos that campaigns go viral quickly than on other social media platforms such as Facebook and Instagram.

“TikTok epitomizes what social media stands for in advertising right now,” said John Petty, head of social plan at creative agency Wieden + Kennedy NY. His firm works with TikTok advertisers such as P&G, Samsung and candy manufacturer Trolli.

TikTok has gained consumers as the coronavirus pandemic kept people home, interacting with their own phones. However, its times running in the US might be cut short if the US government successfully bars domestic transactions – including advertising – using the app, owned by China’s ByteDance. Politicians on both sides of the aisle have criticized the app’s security and privacy rules, concerned that user information could be passed on to China’s government.

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A US court hearing on whether to allow the authorities to exit trades with TikTok, which could effectively prohibit it, will be held on November the 4th, the day following the presidential elections.

FORGING AHEAD

France’s Danone last week declared a new TikTok effort for the Oikos Triple Zero yogurt.

“For us, it’s all about being where our consumers are and making sure we are executing our campaigns in a safe way,” Danone’s US advertising thoughts Linda Bethea told Reuters.

The campaign features football player Saquon Barkley from the New York Giants carrying several overloaded grocery bags and invites customers to post videos of themselves doing exactly the same. The campaign runs through October, but Danone can change it to a different platform if necessary.

“Leading into this campaign, we were always proactively prepared for potential shifts in strategy,” Bethea said.

Bethea declined to comment on legal or political matters outside saying Danone was in continuous contact TikTok and agency partners to ensure its actions comply with U.S. regulations. “Our clients are concerned about any type of political conversation that might swirl around them, generally speaking,” Petty said, without naming clients.

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Fast-food series Chipotle this week launched its third TikTok campaign of the year, hard users to hit on a 53-foot basketball shot at exactly the same amount of ingredients used on its menu.

“We are monitoring the conversation taking place surrounding the future of the TikTok and working closely with their team,” a spokeswoman said.

“We are grateful to the advertising community for showing us tremendous support during this time,” said Blake Chandlee, head of international business solutions at TikTok.

In August, advertisement buyers stated TikTok was offering refunds for campaigns that are not able to run if the app was prohibited in the U.S.

Talks are ongoing to finalize a preliminary deal for Walmart Inc and Oracle Corp to take bets in a new firm, TikTok Global, which would oversee US operations. US President Trump said last month the deal had his”blessing.”

When asked about the effect of a potential ban on its standing, Danone said brand reputation was “of the utmost importance,” but it also prioritizes engaging customers on”dynamic digital platforms that allow for interactive brand storytelling.”

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Procter & Gamble – among the world’s leading advertisers – said it, too, would continue to use TikTok where potential as it watches for the results of the US lawsuit.

“For the most part we’re advising clients to stay the course with their TikTok buys,” said Allie Wassum, who heads social strategy for ad agency Digitas North America, adding that TikTok has shown a dedication to “making it work”.

However, some companies are staying on the TikTok side-lines for today, according to Joe Gagliese, Chief Executive of influencer marketing firm Viral Nation.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jonathan Landay. Editing by Steve Orlofsky.

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