Sophie Blake
TikTok’s meteoric rise in the digital advertising landscape continues, with projections suggesting the platform’s global ad revenue will surpass $30 billion in 2025. However, its future in the United States remains clouded by regulatory uncertainties, prompting advertisers to weigh their strategies carefully. Despite potential roadblocks, TikTok is proving to be a dominant force in social media marketing, driving engagement and influencing consumer behavior at unprecedented levels.
The ByteDance-owned short-video platform has evolved into a full-funnel advertising powerhouse, seamlessly guiding users from brand discovery to purchase. However, looming threats of a US ban have created unease among brands and content creators reliant on the platform. The uncertainty stems from national security concerns raised by US regulators, which have led to temporary disruptions and potential long-term policy shifts.
According to WARC Media’s latest report, TikTok’s advertising landscape is thriving despite these challenges. Alex Brownsell, Head of Content at WARC Media, highlighted the unpredictability of TikTok’s presence in the US market, referencing previous temporary bans and ongoing scrutiny. He emphasized that advertisers must stay vigilant, adapting their strategies to potential regulatory shifts.
If regulatory hurdles do not hinder its growth, TikTok’s global ad revenue is expected to reach $32.4 billion in 2025, marking a 24.5% year-on-year increase. This growth rate outpaces industry giants like Facebook (+9.3%) and Instagram (+19.0%), solidifying TikTok’s position as a major player in the digital advertising space. The platform is projected to hold an 11% share of the global social media ad market, reflecting its increasing importance among marketers.
The US remains a significant revenue contributor, but its share of TikTok’s global ad earnings is shrinking. In 2022, the US accounted for 43.3% of TikTok’s ad revenue; by 2026, this figure is expected to drop to 34.0%. Despite this decline, TikTok is forecast to generate $11.8 billion in US ad revenue in 2025, with continued growth expected if a ban is avoided.
Marketers remain optimistic, with 81% of agency professionals and 74% of brand marketers planning to increase their investment in TikTok advertising. However, if a ban is enacted, Instagram, YouTube, and Snapchat are likely to absorb displaced ad spending.
TikTok’s user engagement levels far exceed those of its competitors. With a global user base of 1.59 billion, the platform ranks as the fifth most-used mobile app worldwide and the second most popular app among women aged 16-24. US users are particularly engaged, with 136 million active adult accounts—representing approximately 40% of the adult population.
The platform’s monthly user time is unparalleled. In 2024, the average user spends more than 35 hours per month on TikTok, which is more than double Instagram’s usage. In the US, engagement is even higher, with users dedicating nearly 44 hours per month to the app. This sustained engagement underscores TikTok’s unique ability to captivate audiences and drive digital trends.
Moreover, TikTok’s influence extends beyond entertainment. A significant portion of users—57% globally—utilize TikTok’s search functionality to discover products and brands, further cementing its role as an essential marketing tool. While advertisers recognize its potential, they remain cautious regarding brand safety and content effectiveness.
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