• by Colin Kirkland , April 4, 2024

As the Senate waits to vote on a bill that could result in a ban for TikTok, the short-form video sharing app is building a case for itself as a benefit to the American economy.

After announcing a TV ad spot opposing the ban, TikTok released an economic impact report on Thursday, which states that the platform generated $14.7 billion for American SMBs in 2023. 

The report was issued by economics forecasting group Oxford Economics, which measured SMB activity on the ByteDance-owned platform, as well as ad spend and ROI. It shows TikTok supporting 7 million U.S. businesses and 224,000 jobs last year, with the largest impacts happening in California, Texas, Florida, New York and Illinois. 

In addition to the almost $15 billion in SMB profits, the report shows TikTok generating $24.2 billion in total economic activity via SMB use on the platform. 

Over 80% of respondents included in the report said they increased their sales after promoting products on TikTok, gathered valuable customer feedback, grew their audience and developed new products in response. 

The report, which spans over 40 pages, is filled with case studies including stats like these, showcasing various ways in which the use of TikTok has helped SMB owners succeed in generating revenue, forging partnerships, expanding reach and developing marketing efforts. 

TikTok also notes that $5.3 billion in U.S. tax revenue last year was supported by SMBs actively using the app. 

If passed by the Senate, the bill opposed by TikTok could ban the app in the U.S. if ByteDance doesn’t agree to sell it to a U.S. owner. It will be interesting to see if this impact report actually makes an impact on senators deciding how to vote on the matter. 

While TikTok awaits a decision, tech companies are already preparing new features that could help them become a TikTok replacement. Earlier this week, Meta released an updated TikTok-ified video player on Facebook that not only defaults to a vertical screen but will recommend more Reels, long-form and Live videos to users.