2024-04-05 06:00:00
TikTok says it contributed $24.2 billion to the U.S. economy and created 220,000 jobs (ASSOCIATED PRESS)
The social program TikTok is facing the risk of being banned in the United States. It is lobbying in all aspects and is playing the economic card, hoping to gain a more favorable position in public opinion. The study, commissioned by Oxford Economics, said TikTok generated $14.7 billion in revenue across a dozen key sectors of the U.S. economy and contributed $24.2 billion to GDP in 2023. This is equivalent to 0.088% of the total economic volume in the same year.
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“TikTok provides growth opportunities[for small and medium-sized businesses]by allowing them to self-promote themselves, either through paid advertising or investment in creator marketing,” the study reads. The report, first reported by The Washington Post, details Analyzing how widespread the app’s impact has been, the app’s active users have grown to 170 million and the number of businesses exceeds 7 million. The study surveyed 1,050 of these businesses and 7,500 TikTok users.
The report comes as the Senate considers a bill that would force TikTok’s Chinese parent company ByteDance to divest its U.S. assets. The measure, which passed overwhelmingly in the House of Representatives, would set a six-month deadline for divestitures or face a ban on the platform if enacted.
Lawmakers have long argued that the app’s ties to China pose a national security risk, although CEO Zhou Shouzi firmly denied in congressional testimony that the company had any influence from the Communist Party.
TikTok President Zhou Shouzi firmly denied that the Communist Party has any influence on the company when testifying before Congress (Anna Moneymaker via Getty Images)
In recent weeks, some senators have expressed doubts regarding the wording of bills that have passed the House of Representatives, and TikTok’s lobbying focus is naturally on the Senate’s voting intentions.
The company recently launched a $2.1 million ad campaign to oppose the bill, setting aside television ad time in five key battleground states where Democratic senators are vying for re-election.
In those ads, some users boasted regarding the benefits of TikTok. One user said: “Think regarding the 5 million small business owners who rely on TikTok to support their families.”
Those who support the ban, including former Vice President Mike Pence, have used ad campaigns to fight back. According to the National Review, Pence’s conservative group Advancing American Freedom plans to spend $2 million on digital TV ads in Nevada, Montana, Wisconsin, Pennsylvania, Ohio and Washington, D.C.
An economic report commissioned by TikTok analyzed the platform’s impact on 12 industries, noting that 45% of respondents attributed “a significant portion of their business success” to it.
According to the report, the biggest impact is on the food and beverage industry, with TikTok contributing US$6.4 billion in revenue and creating 73,000 jobs last year.
The report stated that the company helped create 224,000 jobs in the above related industries.
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