As debates over a potential ban intensify in the US, TikTok has released a economic impact report claiming the social media platform helped American SMBs generate millions in revenue last year, as well as supported the US economy pretty significantly.
According to the platform, $14.7 billion in SMB revenue was generated in 2023, with those businesses contributing $24.2 billion to the US economy and supporting 224,000 jobs.
In order to help secure its place in American app stores, TikTok claimed that more than half (52%) of American SMBs rely on the platform to stay competitive, with an overwhelming majority (88%) seeing a boost in sales after promoting on the app.
TikTok importance to US ecommerce
Claiming to have spread the benefits of the app across the entire country, TikTok said that SMBs in California, Texas, Florida, New York, and Illinois saw the biggest benefits.
In the report, TikTok also revealed its app’s positive impacts on users and communities, highlighting the app’s powers to help users discover new brands and products, make better-informed decisions, and find a wider variety of products.
The pertinent timing of this report comes amid heightened scrutiny over the platform. In March, a bill proposing a TikTok ban passed in the House of Representatives.
Other social networking platforms, including Facebook and Instagram, have already started to introduce TikTok-like features, such as vertical video feeds and ecommerce opportunities, however Trump’s reversal on the issue has added complexity to the debate. Now opposing the ban, the former president believes it would significantly benefit Meta.
Although TikTok’s Singaporean CEO, Shou Zi Chew, has already appeared in court, the report, together with the launch of its dedicated STEM feed, which expanded to Europe this month, serves as a crucial element in the company’s defense.
