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TikTok Shop thrives, ad slots increased despite US ban

TikTok targets $17.5 billion with expansion in 2024
TikTok targets $17.5 billion with expansion in 2024

Despite facing a potential ban in the United States, TikTok continues to expand its e-commerce and advertising offerings. The social media giant is showcasing impressive growth in its TikTok Shop platform. 

In addition, the platform is introducing new ad products to attract more premium advertisers. TikTok says it will use generative AI “to curate an offering of the platform’s hottest trending, brand-suitable content tailored to specific marketing needs.”

TikTok Shop expands despite ban threat

Following the recent threats of a ban from the United States House of Representatives, TikTok Shop released its first Safety Report. This is part of the company’s bid to “building trust and being transparent about” how policies are enforced. 

As per the report, TikTok says it will:

  • Invest in machine learning and algorithms to detect fraud, infringement, and unsafe content.
  • Work towards keeping the Shop communities safe “at both the pre-listing and post-listing stages.”
  • Take steps when possible breaches of its policies are detected. 

The report shows how the platform invested more than $400 million during 2023, while creating an e-commerce space where more than 7,500 customers and sellers could conduct business. 

More than six million new sellers were on boarded onto TikTok Shop during the same period. 

TikTok’s explosive marketing growth 

TikTok on Thursday also confirmed its new premium ad marketing solution within its Pulse Suite. The changes will give advertisers “more choice and control over the context they appear next to.” It will also help advertisers “better understand TikTok’s unique value in their media buy.”

Paramount Global and the National Hockey League (NHL) have joined BuzzFeed, WWE, UFC, and others on the Pulse Premiere Program. 

Pulse Premiere IP Lineups include Saturday Night Live, America’s Got Talent, TODAY Show, and more. As for bringing the hottest “brand-suitable content” to its custom lineup, TikTok says it will use generative AI, but didn’t share specifics on how this would work. 

TikTok ban

In March, the US government accused TikTok of being “influenced by Communist China.” It proposed the Protecting Americans from Foreign Adversary Controlled Applications Act to the floor, which would effectively prevent the usage of TikTok within the US. 

In response to the threat, TikTok CEO Shou Zi Chew said his platform has “empowered more than 7 million businesses in the United States.” He called on content creators and businesses to share their success stories. 

Chew said the legal proceedings won’t impact the current plans to “invest and innovate to keep our community vibrant, exciting, and safe.” He added: “This unconstitutional law is a TikTok ban, and we will challenge it in court. We believe the facts and the law are clearly on our side.”

About the author

Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.

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