Effects of the TikTok Ban: What We Saw in Ad Performance This Week

Effects of the TikTok Ban: What We Saw in Ad Performance This Week

When TikTok was thrown into regulatory limbo, advertisers naturally braced for impact. It’s not just a question of where users will migrate—it’s about how ad ecosystems adapt in real time. Here’s a quick look at some of the ad activity we observed across a few clients, from CPC dips to CPM lows and a curious shift in creative spend.

But first, a TikTok Update: Campaigns to US audiences are back up and running smoothly. No further disruptions are expected. And despite the chaos, demand for TikTok’s TopView saw a big spike between January 18-20, with 33% more 2-second views than the 2024 average. Ads are still resonating with users.

What We Saw During the Ban:

  • CPC Drops, CPAs Stay Stable: For a homebuilding client, CPCs dipped to a 14-day low during the TikTok ban buzz. But CPAs stayed on track—no surprises here.

  • Paused Campaigns: A perfume brand decided to pause early in response to the headlines. No immediate fallout in performance, but this raises an important question: how many brands will start diversifying spend to platforms like Reels or YouTube Shorts during times of uncertainty?
  • Creative Shifts: A fundraising platform client saw an unexpected creative shift. Evergreen static ads, long the top performers, were suddenly outpaced by an animated static ad. Why? We suspect TikTok’s disruption led users and creators to explore new platforms, leaving more room for video content elsewhere.
  • Low CPMs: In health, a small-scale campaign saw CPMs hit a record low during the TikTok disruption. While they’ve since started creeping back up, they’re still below average, presenting an opportunity for brands to stretch budgets across platforms like Reels or Meta.

Key Takeaways:

  • Opportunities in Chaos: When platforms face instability, sharp advertisers can capitalize on temporary CPC and CPM dips on alternative platforms. Don’t wait for stability—lean in while others pause.
  • Creative Diversity Wins: The unexpected success of a previously overlooked ad format emphasizes the need for a mix of creatives in your strategy. Stay flexible.
  • Adapt, Test, Pivot: User migration between platforms can throw inventory and audience behavior into flux. Keep an eye on trends and test new strategies quickly.
  • Diversify Now: If you’ve been heavily invested in TikTok, now’s the time to spread spend across Reels, YouTube Shorts, and other platforms. Don’t let uncertainty limit your reach.

While the long-term impact of the TikTok ban is still unfolding, these shifts remind us of one crucial point: performance marketing doesn’t wait for the perfect conditions. It thrives in them. Stay agile, watch the data, and act quickly.

Thanks to Eric Duchek, Angelica Ellis, and Ian Mackie for the data and insights.

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This article was originally published on our blog, here.

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