Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Agencies representing TikTok\u2019s biggest advertisers are drawing up contingency plans as the US prepares to ban the popular video app, including seeking break clauses in their marketing contracts. ByteDance, TikTok\u2019s Chinese parent, has been given until January to either divest its US business or face a ban on the app by US lawmakers, who are concerned about security because of its links to China.The social media platform, with more than 1bn global users, has become a key part of the marketing strategies for many brands given its huge popularity, particularly with younger audiences who are less likely to engage with traditional advertising such as TV.TikTok generated $16bn in sales in the US last year, predominantly from advertising, people with knowledge of its finances have told the FT. However, multiple advertising bosses say their teams were now drawing up alternative plans for next year should TikTok be removed from the US, one of the world\u2019s most important advertising markets.One advertising executive said the ban threat was already having a chilling effect on spending by some brands. The person said that they had quizzed company executives about what would happen if the US blocks the site.\u201cThey didn\u2019t have a good answer on how they sell ads in the US right now,\u201d the ad boss said. \u201cHow does anyone believe that they\u2019re going to be able to do what they\u2019re doing in six months time?\u201dHe added that the agency was drawing up contingency plans, including a \u201ckill clause\u201d to escape any financial commitments in the event of a ban. Brands and their agencies typically sign contracts committing to spend a certain amount on advertising in advance to secure prominent slots or volume discounts from media platforms. \u201cYou have to keep a little distance,\u201d this person said. \u201cYou\u2019re not at a loss for places to promote. It just so happens that TikTok is the biggest one at the moment.\u201dAnother agency chief said that the threatened ban was already disrupting clients\u2019 plans. Other social media platforms would likely benefit as a result, they added. \u201cWe have contingency plans at a high level if something were to happen,\u201d they said. \u201cThose audiences will go somewhere, and our investment will follow them.\u201d Shou Zi Chew, the Singaporean chief executive officer of TikTok, was among the company\u2019s executives to attend the Cannes Lions week-long advertising festival last week.He did not appear publicly, however, instead attending private meetings with ad bosses about the platform.In a report this month, GroupM said that \u201cif a ban is triggered, we would expect ad revenue to move to other social-video platforms such as Meta\u2019s Reels and YouTube\u2019s Shorts, as well as other digital media owners, and the creators and influencers currently active on those platforms\u201d.A third advertising boss said that \u2014 even if the US took no action \u2014 the negative publicity has already hit TikTok\u2019s standing with some marketers. \u201cMore brands are starting to think about [where the data goes] in terms of the investment, the return that they\u2019re getting,\u201d they said. \u201cI am seeing more of a groundswell into the societal impact of the platform.\u201dByteDance is fighting the threat of a ban of TikTok, arguing that it violates free speech rights and claiming it would be impossible to split the app from the wider group. The Chinese government has said it would not support a sale. About 170mn Americans use the app.In a statement to the FT, TikTok said: \u201cWe continue to see strong growth in our advertising business as brands understand that TikTok drives results and can have a transformational impact on business growth, no matter the size.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Agencies representing TikTok\u2019s biggest advertisers are drawing up contingency plans as the US prepares to ban the popular video app, including seeking break clauses in their<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-138331","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/138331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=138331"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/138331\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=138331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=138331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=138331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}