current
TikTok Volatility Persists
Regulatory uncertainties and mixed performance are impacting TikTok's position in influencer marketing, while Instagram remains a preferred platform.
Timeframe
near-term
Subcategories
Impact areas
Detailed Analysis
Despite its rapid growth, TikTok faces ongoing challenges that are affecting its stability as a marketing platform. Regulatory scrutiny, including a potential US ban and EU restrictions, creates uncertainty for brands. Furthermore, while TikTok Shop shows promise for certain product categories, its overall effectiveness for influencer marketing remains under evaluation. "TikTok's future continues to be uncertain, thanks to the spectre of a ban in the US and friction with European regulators. These dynamics highlight a volatility that affects not only the platform itself but also its use in Influencer Marketing."
Context Signals
89% of European influencer marketers use Instagram, while 64% use TikTok.
TikTok Shop is expanding in some regions, but primarily for low-cost products.
Mixed reviews of TikTok Shop's effectiveness for high-end products.
Edge
Brands may adopt a more cautious approach to TikTok, focusing on organic and awareness campaigns.
Alternative short-form video platforms may emerge to capitalize on TikTok's instability.
The integration of shopping features on other platforms, like Instagram, may accelerate.
