NEW YORK — TikTok bookended its presentation on the Interactive Advertising Bureau’s NewFronts Tuesday with a pledge that its app will stick around, addressing a possible ban that threatens its business in the important thing U.S. market. The NewFronts, an annual showcase where publishers pitch marketers on their latest content and ad innovations, again arrive at a difficult moment for the social media platform, which has faced mounting data-privacy scrutiny over its ties to China while remaining immensely popular, with 170 million U.S. monthly lively users.
“I need to say this very clearly, and I need to say this from my heart: TikTok is here. We are here,” said Vice President of Global Business Solutions Khartoon Weiss at the highest of a packed show emceed by comedian Hasan Minhaj.
“If there’s one thing I need you to remove, it’s that we’re absolutely confident in our platform and assured within the future of this platform, so we’re going to proceed to take a position in it,” added Weiss, who was recently promoted to steer ad sales in North America and used the moment to tout TikTok’s greater ambitions in areas like search.
The Trump administration has already twice delayed a deadline for locating a U.S. backer for TikTok, and has indicated it might accomplish that again soon. As a regulatory crackdown stays up within the air, the NewFronts were a moment for TikTok to allay the concerns of advertisers that make its revenue engine hum, though evaluation shows the divestiture conundrum has yet to provide an industry retreat. Forecasts say TikTok’s ad revenue will rise 24.5% yr over yr to $32.4 billion in 2025, assuming the service doesn’t go dark within the U.S.
Underpinning its focus on reassurance, the ByteDance-owned company’s NewFronts led not with the same old parade of advertising products and programming, but a chat by Head of Trust and Safety Suzy Loftus. Loftus championed TikTok’s brand suitability and content moderation initiatives amid a war on “bad actors,” including $2 billion price of investments and tens of 1000’s of employees around the globe.
“We are held to the next standard due to the impact we’ve got on culture and the strength of the community that we’ve got built,” said Loftus, later calling out “rigorous oversight” for TikTok’s U.S. data from Oracle and third-party inspectors. Oracle was previously considered a front-runner for taking on the business.
Broadening scope with search
Advertising eventually did take center stage, with TikTok emphasizing strengths in capturing cultural moments just like the Super Bowl through its Pulse suite of solutions that situate brands near trending, premium content. The company also detailed its agenda around search, a category where it has taken market share from stalwarts like Google, particularly amongst Gen Z consumers, but is comparatively nascent with reference to advertising.
“We are so excited to shape that latest arena together, because this can be a latest model. We’re going to need to invent social search together,” said Weiss. “People haven’t redone [search] in a long time.”
Executives positioned the expansion as a part of TikTok’s bid to mature its business and increase sophistication for marketers. TikTok on the NewFronts unveiled a Sponsorship Solutions product that permits brands to curate experiences, storytelling and interactive content around specific search keywords. Sponsorship Solutions will factor right into a latest partnership with Live Nation around a channel called The Submix, with a spotlight on promoting concert tickets and merchandise to fans exploring artists on the app known for enhancing songs to viral heights.
“With these tools, brands aren’t just becoming a part of the conversation, they’re leading it, especially during those tentpole moments and cultural conversations,” said Emily Freed, general manager of U.S. agency at TikTok. Freed added that Sponsored Solutions in early tests saw higher engagement and recall than other ad formats, without divulging specific figures.
‘Out of phone’ content and generative AI
TikTok also detailed plans to maneuver further beyond the in-app experience to determine a greater foothold in categories like live sports which might be a reliable draw for ad budgets and fostering fan connections.
“We’re constructing a strong sponsorship package series that goes beyond the screen,” said Freed.
For instance, TikTok is evolving its Beauty Month program this yr to feature “out of phone” content and in-person creator gatherings themed around women in sports. It can also be taking on the Las Vegas Strip for the upcoming Formula 1 Grand Prix through onsite activations that can complement those running online through Pulse Premiere, which provides brands alternative placement around videos from top publishers. Pulse Premiere is adding Formula 1, Red Bull Media and Warner Bros. Discovery to a roster that already includes names like Disney, NBCUniversal and Paramount.
In addition, TikTok is integrating generative artificial intelligence into its Pulse Core offering tailored toward user-generated fare with a Custom Lineups tool that helps surface relevant videos by category, occasion or holiday. Closing out the roadshow, Weiss returned to sentiments she shared in the beginning, emphasizing stability even as TikTok faces down potentially massive disruption.
“Our advertising business is not going to change,” said Weiss. “We remain open for business and we [will] stay streaming.”
Read the total article here
