# TikTok's ad launch faces challenges from US ban threat | Tech News (HT Tech)

> Source: https://tech.hindustantimes.com/tech/news/tiktok-s-ad-launch-faces-challenges-from-us-ban-threat-71594306956169.html

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# TikTok's ad launch faces challenges from US ban threat

## TikTok has said it will also provide $100 million in free ad credits globally, which small businesses can apply for as they have been particularly hard-hit by the coronavirus pandemic.

Updated on: Aug 20 2022, 21:50 IST

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TikTok's new self-service ad platform, which lets companies purchase ads without needing to speak with a sales team. (REUTERS) 

### By REUTERS

TikTok’s launch on Wednesday of a new platform to court small business advertisers is fraught with challenges, especially after the Trump administration's threat this week to impose a ban on China-based social media apps.

The new self-service ad platform, which lets companies purchase ads without needing to speak with a sales team, is key to [TikTok’s](https://tech.hindustantimes.com/tech/news/tiktok-transparency-report-india-topped-in-user-info-video-content-removal-requests-71594296197555.html) ability to turn its red hot short video sharing app into a viable advertising business.

But the possible ban floated by U.S. Secretary of State Mike Pompeo late on Monday, and new questions about the Chinese-owned company’s ability to control hate speech and misinformation, cloud the launch, ad buyers said.

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“The trust issues are there because it’s a new app,” said an executive at a major ad agency, adding TikTok needs to make clear to advertisers what it will do “if the chance is more than zero,” that ads could show up next to harmful content.

The launch coincides with an international backlash against hate speech and misinformation that has proliferated on other services including Facebook Inc and Twitter Inc, prompting an unprecedented advertising boycott of some of these social media platforms.

In recent months, the debunked “PizzaGate” conspiracy theory about a child sex ring run out of a Washington pizza parlor by Democratic elites resurfaced on [TikTok](https://tech.hindustantimes.com/tech/news/tiktok-gone-from-hong-kong-app-stores-as-china-law-bites-71594293629979.html)for a new generation of users, the New York Times reported.

TikTok said it is committed to protecting brands from appearing next to objectionable content through content moderation technology and human moderators. It also said it has never provided user data to the Chinese government and would not do so if asked, when asked about Pompeo's statements.

These issues, along with confusion over TikTok’s benefit for smaller advertisers will need to be resolved if TikTok wants to attract more advertisers, ad agency executives said.

Wednesday’s global launch of the self-serve ad platform, which had previously been in beta testing, will include a music library and video-editing tools to help brands make ads that match the style of TikTok videos.

The app said it will also provide $100 million in free ad credits globally, which small businesses can apply for as they have been particularly hard-hit by the coronavirus pandemic.

“Our users want to identify with brands, and people identify with their local businesses and local restaurants,” said Blake Chandlee, TikTok's vice president of global business solutions, in an interview with Reuters.

Beijing-based ByteDance, TikTok’s owner, booked $5.6 billion in revenue during its first quarter, with the bulk coming from ads sold on the China-based version of TikTok called Douyin rather than TikTok itself, Reuters reported previously.

TikTok will also face stiff competition from other rivals that appeal to younger audiences such as Snapchat, which has also appealed to small businesses with "direct response" ads that are favored by smaller companies.

Local and smaller businesses favor direct response advertising that encourage sales or website visits. These types of ads can be difficult for social media platforms to develop, said Darren D’Altorio, head of social media at ad agency Wpromote, which counts Instacart and Samsung as clients.

“I don’t think TikTok is there yet with respect to direct response,” he said.

Snapchat shares surged 9% on Tuesday, long after news of the potential U.S. ban on Chinese apps broke.

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First Published Date: 09 Jul, 20:38 IST

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[sendGA4Events(this), 0)" data-item-widget-name="trending stories" data-item-story-type="story" data-item-story-title="Apple plans to train AI using your on-device data without accessing personal content or emails: Report" data-item-target-url="tech.hindustantimes.com/tech/news/apple-plans-to-train-ai-using-your-on-device-data-without-accessing-personal-content-or-emails-report-71744705577087.html" data-item-product-position="4" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ### sendGA4Events(this), 0)" data-item-widget-name="trending stories" data-item-story-type="story" data-item-story-title="Apple plans to train AI using your on-device data without accessing personal content or emails: Report" data-item-target-url="tech.hindustantimes.com/tech/news/apple-plans-to-train-ai-using-your-on-device-data-without-accessing-personal-content-or-emails-report-71744705577087.html" data-item-product-position="4" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> Apple plans to train AI using your on-device data without accessing personal content or emails: Report](https://tech.hindustantimes.com/tech/news/apple-plans-to-train-ai-using-your-on-device-data-without-accessing-personal-content-or-emails-report-71744705577087.html)
[sendGA4Events(this), 0)" data-item-widget-name="trending stories" data-item-story-type="story" data-item-story-title="CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside" data-item-target-url="tech.hindustantimes.com/wearables/news/cmf-buds-2-key-features-and-price-revealed-ahead-of-april-28-launch-details-inside-71744687438720.html" data-item-product-position="5" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ### sendGA4Events(this), 0)" data-item-widget-name="trending stories" data-item-story-type="story" data-item-story-title="CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside" data-item-target-url="tech.hindustantimes.com/wearables/news/cmf-buds-2-key-features-and-price-revealed-ahead-of-april-28-launch-details-inside-71744687438720.html" data-item-product-position="5" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside](https://tech.hindustantimes.com/wearables/news/cmf-buds-2-key-features-and-price-revealed-ahead-of-april-28-launch-details-inside-71744687438720.html)

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## Gaming

[₹20000 you should consider"> sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Top 5 gaming monitors under ₹20000 you should consider" data-item-target-url="tech.hindustantimes.com/gaming/news/top-5-gaming-monitors-under-rs-20000-you-should-consider-71762254759956.html" data-item-product-position="1" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ₹20,000," /> ### sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Top 5 gaming monitors under ₹20000 you should consider" data-item-target-url="tech.hindustantimes.com/gaming/news/top-5-gaming-monitors-under-rs-20000-you-should-consider-71762254759956.html" data-item-product-position="1" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> Top 5 gaming monitors under ₹20000 you should consider](https://tech.hindustantimes.com/gaming/news/top-5-gaming-monitors-under-rs-20000-you-should-consider-71762254759956.html)
[sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off" data-item-target-url="tech.hindustantimes.com/gaming/grab-gaming-consoles-at-discounted-rates-during-amazon-great-indian-festival-up-to-72-off-71760602352327.html" data-item-product-position="2" data-item-story-segment="NA" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ### sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off" data-item-target-url="tech.hindustantimes.com/gaming/grab-gaming-consoles-at-discounted-rates-during-amazon-great-indian-festival-up-to-72-off-71760602352327.html" data-item-product-position="2" data-item-story-segment="NA" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off](https://tech.hindustantimes.com/gaming/grab-gaming-consoles-at-discounted-rates-during-amazon-great-indian-festival-up-to-72-off-71760602352327.html)
[sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges" data-item-target-url="tech.hindustantimes.com/gaming/news/pokmon-go-wild-area-2025-to-bring-grimmsnarl-family-shiny-hatenna-and-global-challenges-71756381158954.html" data-item-product-position="3" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ### sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges" data-item-target-url="tech.hindustantimes.com/gaming/news/pokmon-go-wild-area-2025-to-bring-grimmsnarl-family-shiny-hatenna-and-global-challenges-71756381158954.html" data-item-product-position="3" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges](https://tech.hindustantimes.com/gaming/news/pokmon-go-wild-area-2025-to-bring-grimmsnarl-family-shiny-hatenna-and-global-challenges-71756381158954.html)
[sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Shade Silver free on Steam for a limited time: Here’s how to get it" data-item-target-url="tech.hindustantimes.com/gaming/news/shade-silver-free-on-steam-for-a-limited-time-here-s-how-to-get-it-71755589849487.html" data-item-product-position="4" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ### sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Shade Silver free on Steam for a limited time: Here’s how to get it" data-item-target-url="tech.hindustantimes.com/gaming/news/shade-silver-free-on-steam-for-a-limited-time-here-s-how-to-get-it-71755589849487.html" data-item-product-position="4" data-item-story-segment="news" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> Shade Silver free on Steam for a limited time: Here’s how to get it](https://tech.hindustantimes.com/gaming/news/shade-silver-free-on-steam-for-a-limited-time-here-s-how-to-get-it-71755589849487.html)
[sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak" data-item-target-url="tech.hindustantimes.com/gaming/call-of-duty-black-ops-7-skips-switch-2-at-launch-release-date-and-price-leak-71755498652282.html" data-item-product-position="5" data-item-story-segment="NA" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="image"> ### sendGA4Events(this), 0)" data-item-widget-name="gaming" data-item-story-type="story" data-item-story-title="Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak" data-item-target-url="tech.hindustantimes.com/gaming/call-of-duty-black-ops-7-skips-switch-2-at-launch-release-date-and-price-leak-71755498652282.html" data-item-product-position="5" data-item-story-segment="NA" data-item-event="story_click" data-item-page-name="story page" data-item-widget-element="title"> Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak](https://tech.hindustantimes.com/gaming/call-of-duty-black-ops-7-skips-switch-2-at-launch-release-date-and-price-leak-71755498652282.html)
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## Trending News

### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order

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### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC

![](https://images.hindustantimes.com/tech/img/2025/04/16/414x233/Infinix_Note_50s_5G_1744790483856_1744790483979.jpg) 

### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more

![](https://images.hindustantimes.com/tech/img/2025/04/16/414x233/ScreenshTV_1744803291290_1744803314121.png) 

### Apple plans to train AI using your on-device data without accessing personal content or emails: Report

![](https://images.hindustantimes.com/tech/img/2025/04/15/414x233/Apple_Intelligence_1744705908242_1744705908517.jpg) 

### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside

![](https://images.hindustantimes.com/tech/img/2025/04/15/414x233/CMF_Buds_2_1744687708811_1744687708991.jpg) 

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