What TikTok’s Future in the U.S. Might Mean For Your Business

TikTok on a phone screen in front of the US flag

TikTok has become a cultural force in the social media world. The short-form video app has captured the attention of billions and significantly impacted the influencer marketing industry. Behind the app’s fast-paced entertainment and lucrative potential for brands and creators, serious questions remain for U.S. audiences, as national security concerns have put the platform’s future in question.

For business owners, the news of a potential U.S.-only version of TikTok, complete with a retrained algorithm and stronger data protections, could signal a fresh opportunity. If the platform becomes more secure and better tailored to American users, it may become more appealing to brands that have been treading cautiously.

TikTok’s Rapid Rise Among Consumers and Brands

Launched internationally in 2018, TikTok’s rise has been nothing short of explosive. The app now boasts nearly 2 billion users worldwide, with more than 170 million users in the U.S. alone, making it its largest audience. It’s especially popular among younger audiences; Gen Z and Millennials make up the majority of users, however, older demographics are steadily growing too.

For brands, TikTok offers something different: an algorithm that favors authenticity and creativity over polished production. Small businesses and creators have found success sharing behind-the-scenes footage, product tips and day-in-the-life videos, all without needing a big ad budget.

Short-form video, in general, is dominating digital content trends. Consumers prefer it for its speed, entertainment value and storytelling power. TikTok has helped drive this trend, and other platforms (like Instagram Reels and YouTube Shorts) have followed suit.

TikTok’s Ongoing Security Debate

Despite its popularity, TikTok has faced mounting pressure from U.S. lawmakers concerned about data privacy and national security. The app is owned by ByteDance, a company based in China, which has raised concerns among U.S. officials about the potential misuse of American user data and the possibility of Chinese government influence.

Since 2020, there have been repeated calls to ban or restrict the app in the U.S., with legislation introduced multiple times. The most recent federal efforts would require ByteDance to reduce its ownership stake in TikTok or face a ban in the U.S. These efforts have been extended and delayed several times, as legal battles and negotiations continue. The issue centers on who ultimately controls the data of U.S. users, and how that data is protected.

A U.S.-Only Version of TikTok In The Works

In the latest development, TikTok is working on a plan with U.S. investors and government officials for a U.S.-specific version of its app, complete with a different algorithm, improved security protocols and majority ownership from U.S. investors. This new app would store and process U.S. user data domestically, aiming to ease concerns about foreign influence or access.

While this plan is still in development, it signals TikTok’s willingness to adapt to stay in the massive U.S. market. A localized algorithm could also change how content is served to users and how brands reach audiences both organically and through paid advertising.

For brands that have been hesitant to jump in due to security concerns or wasted investment, a secure and stable US version could mean a safer platform to invest marketing resources.

What This Means for Rural Brands and Businesses

For rural businesses, TikTok may not always seem like an obvious fit, but it can be a powerful marketing tool if your audience and product or service align with the platform’s strengths. 

TikTok thrives on authentic stories and niche communities, which can create opportunities for rural brands to connect with new audiences in an engaging, relatable way. Plus, the app’s short-form video style is budget-friendly. It doesn’t require a studio or a big budget to connect with viewers, and the content can be efficiently repurposed across other social media platforms. 

If your brand has a relevant audience segment that is active on TikTok, making this app part of your marketing strategy might be worth testing.

Stay Tuned on TikTok

The potential U.S.-only version of TikTok is still in development, and the details of how it will function are not yet final. The platform could soon become more transparent, secure and stable for brands and users alike.

For now, TikTok remains one of the biggest platforms capturing consumer attention. If your customers are spending time there, it’s worth keeping an eye on how the app evolves and considering whether short-form video fits your marketing strategy.

At Callis, we’ll continue tracking these developments and sharing how they impact rural businesses’ social media strategies. The future of TikTok in the U.S. isn’t settled yet; any changes could bring new opportunities for brands with the right audience and story to tell.

SOURCES

https://explodingtopics.com/blog/tiktok-demographics#tiktok-demographic-data-key-statistics

https://www.mediapost.com/publications/article/409287/oracle-to-recreate-tiktoks-algorithm-under-new-de.html