TikTok’s US turmoil creates advertising opportunities for social media giants

Social media ads: TikTok, the short-form video took the spotlight at tech and social media giants' annual advertiser presentations, as companies like Snap and Meta aimed to seize opportunities amidst TikTok's uncertain future in the US.

Following President Biden's signing of a bill granting ByteDance a one-year deadline to divest TikTok due to national security concerns, platforms like Snap and Meta made efforts to woo advertisers away from their rivals.

At the NewFronts event in New York, TikTok announced new partnerships in sports and entertainment, including a deal with NBCUniversal to feature clips from the upcoming Paris Olympics. Despite facing legislative challenges, TikTok is projected to rake in $8.66 billion in US ad revenue this year that showcases its appeal to advertisers.

Snap, owner of Snapchat, also announced collaborations with NBCUniversal, sending influencers to the Olympics and showcasing concert clips from Live Nation. Amidst the tumultuous environment, Snap underlined its reliability as a platform for advertisers.

Platforms are focusing on professionally produced content to attract brands wary of user-generated or AI-generated content. 

Meta, the parent company of Facebook and Instagram, highlighted Reels, its TikTok competitor, during its NewFront presentation. With Reels gaining traction, Meta aims to capitalise on potential user and revenue shifts in the event of a TikTok ban.

Meanwhile, Google revealed that its short-form video feature, YouTube Shorts, is increasingly popular on TV screens, indicating the growing significance of short-form video across multiple platforms.

Despite the uncertainty surrounding TikTok's future, advertisers remain focused on near-term strategies, intending to leverage innovative capabilities offered by platforms like TikTok until further developments arise.

(With Reuters inputs)