Is Advertising on TikTok Still Worth the Risk? What Marketers Need to Know Now about the Platform
Here’s the Gist
The United States Congress, the Biden Administration, and most recently, a U.S. Federal Appeals Court all agree: TikTok is a serious national security risk. Why? Because its parent company, ByteDance Ltd, provides unrivaled access to vast amounts of U.S. user data and control over TikTok’s content to the Chinese government, thus jeopardizing privacy, democracy, and trust.
Congress, President Biden, and the recent appeals court ruling all echo the same refrain: shut TikTok down in the U.S. But under President-elect Trump, enforcement of this ruling is unlikely—at least for now. So what are next steps? Marketers and business owners can:
Continue to utilize TikTok as part of your marketing mix, if you choose to—but don’t wholly depend on it.
Diversify your advertising and content/organic strategy across IG Reels, YouTube Shorts, and owned channels. Own as much of your own first-party data as you can.
Remain adaptable, nimble, and ready for change in the face of other upcoming court rulings, the U.S. presidential turnover in January, and the current status of the app. The best way to do this? Our unparalleled advertising and marketing community, the Foxwell Founders Membership.
The Full Story
A recent U.S. Federal Appeals Court ruling just put TikTok’s national security threat front and center. Our team read all 97 pages of the ruling to determine the implications on marketing so you don’t have to. The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) was upheld, highlighting TikTok’s deep ties to Chinese parent company, ByteDance, and exposing its vulnerabilities to foreign influence and espionage.
The court didn’t mince words: TikTok is a serious national security risk. It’s not just about what the app is doing today—it’s about what it could be forced to do in the future under China’s control.
Yet political signals suggest President-elect Trump will do nothing — meaning he won’t follow-through with the ban, nor stop it fully and it will therefore sit stagnant within the courts. If you're a marketer relying on TikTok, it’s time to get clear-eyed and strategic on next steps with TikTok advertising and organic TikTok strategy in 2025 and beyond. Let’s break it down.
The recent court ruling laid out two core concerns: data collection and content manipulation, both of which highlight how the platform could harm U.S. interests.
1. TikTok Data is a Goldmine for China
TikTok collects a staggering amount of user data—GPS location, biometric identifiers, browsing history, video view data, and more. (Arguably more personal data than other social apps and furthermore, the data isn’t simply collected; it’s collected and shared with the Chinese government.) The ruling made clear that this accusation isn’t just theoretical. ByteDance operates under China’s 2017 National Intelligence Law, which requires companies to hand over data when the government asks.
The court warned:
“It is not what TikTok does today that creates the risk, but what it could be compelled to do tomorrow.”
China’s access to such data poses security and privacy risks to everyone whose data is included, especially non-Chinese citizens. As the court underscored:
“Access to such information could allow the PRC (People’s Republic of China) to track the locations of [U.S.] Federal employees and contractors, build dossiers of personal information for blackmail, and conduct corporate espionage.”
And ByteDance’s control is undeniable:
“Even putatively ‘private’ companies based in China do not operate with independence from the government.”
TikTok’s assurances that U.S. data is safe? The court didn’t buy it. Reports in the case revealed ByteDance employees had already abused U.S. user data, including tracking physical locations of individuals, even after mitigation measures were in place.
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2. Content Manipulation Is a Real and Pressing Threat
TikTok’s algorithm, built with ByteDance’s input, is a powerful tool for engagement—and manipulation. The ruling bluntly addressed China’s ability to weaponize the app’s recommendation engine:
“The power to amplify or suppress certain messages—especially at scale—creates vulnerabilities that adversaries could exploit to divide Americans or manipulate public opinion.”
What does this mean? It’s not just about silly videos, content discovery, or even entertainment. The People’s Republic of China (PRC) could leverage TikTok to spread its own agenda and propaganda, suppress dissent, and interfere with U.S. political discourse. The court put it starkly:
“The PRC’s ability to manipulate content covertly on TikTok presents a significant risk to public discourse and democratic processes.”
For marketers, this raises a deeper question: Are you comfortable building your business on a platform that the U.S. government sees as a tool for foreign influence? Additionally, regardless of what happens with TikTok and the U.S. government, are you comfortable building your business and investing ad dollars in a platform that is continually a key figure in federal lawsuits—so much so that eventually it is likely to be banned if not today, then some day?
Why President-Elect Trump Will Likely Do Nothing
“Nothing” meaning he and his administration likely won’t see the ban come to fruition, or push for the app to leave U.S. app stores, or be removed from smartphones in the U.S., nor will he likely reverse the current warnings from the U.S. Federal Appeals Court to ByteDance. The decision will essentially sit in limbo without action being taken.
Despite the court’s findings, a TikTok ban is unlikely under Trump because:
Presidential Discretion: Enforcement of the law/recent ruling is largely up to the president. Trump can simply deprioritize it, directing agencies to focus elsewhere.
TikTok’s Popularity: With 170 million U.S. users, TikTok is massively popular, especially among younger voters. Trump has also embraced the platform for his campaign, signaling its unique value as a communication tool.
For Trump, the political upside of staying on TikTok outweighs the risks. He’ll talk tough, but likely won’t enforce any major change.
What Should Marketers Do?
TikTok isn’t going anywhere yet. But ignoring the risks could leave you exposed, especially if a ban does happen in the future. So whether you’re an advertiser, a brand owner, content creator, influencer, or just interested in the state of the platform, here’s how you can stay ahead:
1. Diversify Your Channels
Relying solely on TikTok for advertising or organic social media is a strategic risk. Start building a presence on alternative platforms that can deliver similar results:
Instagram Reels/Facebook Reels
YouTube Shorts
Shopify/owned store or even Amazon instead of TikTok Shops
Julia Tate of Apex Digital put it best:
“TikTok is a massive opportunity, but ignoring the risk is shortsighted. Diversify your investments, don’t put all your chips on one table.”
Does this mean you shouldn’t advertise or post organically on TikTok at all? No.
Does this mean you can still diversify channels and test/use TikTok for now? Yes.
Does this mean you should build an entire TikTok arm of your agency that focuses solely and exclusively on TikTok ads? Definitely not.
Does this mean you should understand the current status and stay up-to-date on TikTok rulings and be vigilant to understand the current state as it evolves over time and make the best decisions each day/week/year for your business. Yes.
2. Focus on First-Party Relationships
Your audience matters more than any single platform. Kelsey Harrington of Lighthouse Marketing advises:
“Platforms will change, but strong audience connections last. Build relationships that aren’t tied to one channel.”
Start collecting first-party data now through email lists, SMS campaigns, and owned platforms. The stronger your audience ties and your data, the safer your strategy. Any time you/the brand doesn’t own the content directly, there’s always going to be a risk when the data is owned by another entity.
3. Be Ready for Tough Questions
Your customers and clients will hear about TikTok’s security issues—and they’ll have questions. Be prepared to answer transparently:
Why is your brand still on TikTok?
How are you protecting your audience’s privacy?
Trust matters. If you’re staying on TikTok, own the decision and explain why. Here’s a quick write-up to explain the case in layman’s terms to copy/paste and send to those who are asking.
4. Stay Informed and Flexible
Marketers are already preparing for a post-TikTok future. Jason Lee of Horizon Media shared:
“Advertisers haven’t pulled back yet, but contingency plans are already in motion. Diversification is key.”
Stay ahead by connecting with others who are navigating this uncertainty. Communities like the Foxwell Founders provide expert insights, trends, and strategies to adapt quickly.
The Bottom Line
The court’s ruling is clear: TikTok is a national security risk. The PRC’s influence over ByteDance allows access to vast amounts of U.S. data and control over TikTok’s content, posing threats to privacy, democracy, and trust.
But under President-elect Trump, enforcement is unlikely—at least for now. For marketers, this is the time to get smart:
Leverage TikTok while it’s here—but don’t depend on it.
Diversify your strategy across Reels, Shorts, and owned channels.
Stay adaptable and ready for change.
The smartest marketers aren’t waiting—they’re preparing.
Want expert advice on navigating the next big shift? Join Foxwell Founders, the community where marketers and brand owners alike can stay ahead of the curve together.