Ad spend on TikTok year-over-year has been growing, but that growth has cooled since a potential U.S. ban was announced in March.
Meanwhile, the platform’s user growth, especially among younger people, is flagging, according to data shared by five sources.
TikTok’s ad spend in March—the month the potential ban was announced—was up 19% year-over-year, according to MediaRadar. In the months following the announcement, that growth slightly cooled, with ad spend increasing 11% YoY and 6% YoY in April and May, respectively.
From January through May 2024, ad spend on the platform exceeded $1.5 billion, an 11% YoY increase from the nearly $1.4 billion spent during the same period in 2023.
A separate study found that nine out of 20 advertising categories saw increases in month-over-month ad spend in April 2024, according to market intelligence firm Sensor Tower.
Consumer services, which include companies like carpet cleaner Stanley Steemer and online printing service Vistaprint, had the largest increase in U.S. ad spend, up 115%, followed by jobs and education at 20%, financial services at 17% and both real estate and software at 16%.
The average daily spend on TikTok dropped by only 2% month-over-month in April 2024, per Sensor Tower.
However, four of the top 10 advertisers on TikTok reduced their spend in April compared to the previous month. That included Target (which decreased by 30% MoM), DoorDash (down 25%), Bayer (20%) and Procter & Gamble (10%).
Still, advertisers find value in TikTok.
“Until all users are gone or they’re forced to go because of the ban, there’s too much attention to ignore TikTok,” a creative agency executive told ADWEEK.
