Superstar Weekly

A newsletter for Creator Marketing Managers on the business of attention and influence

TikTok: Sell or die

The clock is ticking for TikTok in the US! Last week, a bill forcing TikTok’s parent company to divest its US operations or face a ban flew through the House with bipartisan support.

Now, the ball is in the Senate's court, where things typically move slower. But with the White House backing the ban, pressure is mounting for a decision.

Here's what you need to know.

1. Is TikTok toast? Maybe. The Senate could introduce changes, but a total ban is definitely on the table. Legal challenges are also likely.

2. Is a total ban the only option? Not necessarily. The Senate might alter the bill and seek alternative solutions, such as stricter data security measures. With a myriad of potential amendments possible, the outcome is about as unpredictable as the algorithms that power TikTok's feed. 

3. What's the fallout? A TikTok ban would be a seismic event. Millions of creators, brands, and agencies have built their success on the platform. A shutdown would force them to scramble for new audiences and income streams. Brands would lose access to a goldmine - the highly engaged Gen Z and millennial audience that thrives on TikTok.

A ban could also disrupt existing campaigns featuring these creators, requiring brands to find new talent or revamp their strategies entirely. Searching for alternative platforms and adapting content for different formats would be significant challenges.

4. Global domino effect? Keep an eye out. A US ban on TikTok would embolden other countries that are currently considering similar actions. This would create a global ripple effect, further disrupting the creator economy on a massive scale.

The bottom line

The situation is fluid. We might be staring down the barrel of a full-fledged ban or simply witnessing a shift in the guard through a change in ownership. The key takeaway? Stay agile.

In our conversations with brands and agencies we’ve seen a trend towards hedging strategies, broadening both channels and creator networks to ensure continuity if TikTok disappears in the US. And remember, the US could just be the tipping point—other nations are eyeing similar moves. It's time to ponder a TikTok-less future and prepare accordingly.

Industry spotlight

Reports show brands are seeing less engagement on TikTok over time

If a potential ban wasn’t enough, the latest benchmark reports are in and it ain’t pretty. TikTok’s brand engagement rates are on a noticeable decline, plummeting from 5.69% to 2.63% in just a year. With TikTok’s user base growing, the fight for visibility in the ‘For You’ feed is getting fiercer. Before you rethink your content strategy, remember that it’s not just you facing this slump. Read more here

What’s the difference between creators and influencers?

Given many consumers spend significant amounts of time interacting with social media creators and influencers, brands need to understand the difference between the two. Yet, too often, marketers conflate the roles of creator and influencer, using the terms interchangeably. Read more here

There could be a creator economy campus coming to a city near you

In an ambitious move to elevate the creator economy, Whalar has announced the launch of ‘The Lighthouse,’ campuses dedicated to fostering the talents of creators. Set to open in iconic locations such as Venice, California, and Brooklyn, New York, these hubs promise to offer an immersive environment where creators can attend classes, collaborate, and access state-of-the-art production facilities. Read more here

Want to stop livestreaming? That’ll be $42,000

Chinese livestream agencies are luring creators with promises of success, only to bind them in restrictive contracts demanding frequent streams and imposing steep penalties for breaches, sometimes reaching tens of thousands of dollars. With more creators fighting back, legal disputes are on the rise. Read the full story here

In a booming influencer economy, creators seek standardization for payment terms

Creators are increasingly frustrated with unfair payment practices and late payments, often waiting months to receive compensation from brands and agencies. This, coupled with inconsistent payment terms (30-90 days), has led creators to advocate for change, and brands need to adapt...and fast. Read more here

Starpower

Influential YouTuber Marques Brownlee partners with accessories company Ridge

Digital creator and product reviewer Marques Brownlee is taking his love for Ridge wallets to the next level by joining the brand as Chief Creative Partner. The move highlights the increasing power of top-tier creators and the conviction among companies that bringing them on board in a formal role can add to their bottom lines. Read more here

What we’re reading and watching

The creator economy is facing a perfect storm of AI-generated content and piracy [Link]

Inside the deep, dark world of influencer gossip forums [Link]

​​MrBeast and the toxic culture of YouTube [Link]

Join the conversation

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