Advertisers Shift Budgets to Meta as TikTok Faces Uncertain Future

California: The potential U.S. ban on TikTok drives major advertisers to reduce their marketing budgets for the platform. TikTok’s CPMs decreased dramatically in Q1 2025 as major advertisers shifted their financial resources from the platform towards Meta platforms.

Advertisers have become more cautious due to the continuous ban threat. President Trump’s deadline extension for banning TikTok became effective for the next seventy-five days, increasing regulatory strain. The service interruption in January decreased user engagement, damaging the brand’s reputation.

The latest statistics show that eight sectors among TikTok’s top ten advertisers allocated fewer funds in Q1 of 2025 than last year during the equivalent season. TikTok’s projected U.S. ad revenue during 2025 sits at $14.8 billion, trailing behind Facebook’s $36.9 billion but leading above YouTube’s $9.9 billion.

Advertisers are cautious about TikTok, yet they have not entirely cut their platform usage. From the perspective of Saylor’s Raul Rios, nobody considers TikTok dead, but it has lost its previous business stability. Brands that resumed their advertising campaigns after previous bans continue their activities with restrained promotional content despite attractive offers.

This transformation favors the successful growth of Meta and its operations. Facebook and Instagram utilize advertiser uncertainty as an opportunity to invest in short-form video development; reels and similar short video formats experience rapid growth in their CPMs.

Meta’s strategic focus on CPM growth is emphasized by Varos’s GM of media, Jason Krebs.

An actual danger exists in the collapse of TikTok’s advertising system when a complete ban occurs after 15 June. If a TikTok advertising platform collapses and becomes permanent, brands optimized for TikTok’s algorithm must construct their platform strategies from the beginning on new platforms.

Hybridge and Meta Labs attract attention from advertising analysts who monitor the acquisition development activities. A successful deal could revive confidence in TikTok, but if not, Meta’s current momentum may define the future landscape.

Disclaimer: The news articles published on Innovate Marketers are based on reports from reputable third-party sources and are not original reporting by Innovate Marketers. While we strive to ensure accuracy and integrity, we cannot guarantee the completeness or timeliness of the information provided.

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