Following a five-hour congressional hearing where TikTok’s CEO, Shou Zi Chew, was grilled on national security concerns and user data protection, the company has reassured advertisers through a document titled “Myth vs. Fact”. The document, which was sent to advertisers and their agencies, states that TikTok does not allow any government to influence or change its recommendation model and denies allegations of deliberately showing content that is favorable to the Chinese Communist Party.
Advertisers are a crucial demographic for TikTok, which boasts 150 million monthly active users in the US and is forecast to generate $6.83 billion in ad revenue this year, despite the looming threat of a potential ban. While some advertisers have adopted a wait-and-see approach, alternatives like YouTube Shorts and Instagram Reels have emerged. Wall Street analysts have predicted that the app is likely to get banned or sold. The full “Myths vs. Fact” document is available below: