LONDON, UK — A new WARC Media Platform Insights report dives deep into TikTok’s expanding role in consumer behavior and brand marketing. As the platform continues to drive full-funnel outcomes from discovery to purchase marketers remain both intrigued and cautious about its future, particularly in the US.
TikTok’s advertising empire is on track to exceed $30 billion this year, reaffirming its dominance in the digital marketing landscape. Yet, as the US debates a potential ban, nearly $12 billion in ad spend hangs in the balance. The platform’s advertising revenue is surging outside of the US, reshaping the global social media ad market. Meanwhile, TikTok’s impact on e-commerce, particularly Amazon sales, is rewriting the playbook for digital marketing.
Alex Brownsell, Head of Content, WARC Media, and author of the report, says: “On 18 January, US TikTok users were unable to access the video-sharing app for more than 12 hours due to regulation banning the app on the basis of national security concerns. A 75-day deadline extension to 5 April by President Donald Trump does little to dispel the uncertainty around TikTok as an ongoing staple in many brands’ marketing plans.
“In this report, we explore the potential impact of a US ban on TikTok’s advertising revenue, and examine the platform’s role in consumer behaviour and campaign effectiveness.”
If the US ban does not materialize, TikTok’s global ad revenue is projected to reach $32.4 billion in 2025, marking a 24.5% year-on-year growth. This positions the platform ahead of Instagram (+19.0%) and Facebook (+9.3%) in ad revenue growth, commanding an 11% share of the global social media market.
Despite TikTok’s status as the leading social platform for ad investment growth, its US market share has been shrinking – dropping from 43.3% in 2022 to a projected 34.0% in 2026. If TikTok remains accessible in the US, its ad revenue is forecasted to hit $11.8 billion this year, rising to $13.4 billion by 2026. However, should a ban be enforced, Instagram, YouTube, and Snapchat stand to absorb TikTok’s displaced ad dollars.
Engagement levels are unmatched on the app. With a reported ad reach of 1.59 billion, it ranks as the fifth most-used mobile app worldwide. Among women aged 16-24, it claims the No. 2 spot. The US remains TikTok’s largest market, with 136 million active adult users, representing nearly 40% of the population.
Users spend an average of 35 hours per month on TikTok – more than double the time spent on Instagram. In the US, that number jumps to 44 hours per month, making TikTok the ultimate time-sink for digital audiences.
With over half (57%) of TikTok users leveraging the platform’s search function for brand and product discovery, it’s becoming an essential tool for marketers. However, questions about ad effectiveness and safety remain.
Kantar’s latest Media Reactions study found that TikTok has again claimed first place, jointly with Amazon, as consumers’ most preferred advertising platform, and is viewed as the most fun and entertaining. However, excessive targeting could be an issue, and TikTok also falls short of the industry average in terms of the trust marketers place in it compared to YouTube, Netflix and Instagram.
One of the key trends outlined by TikTok for 2025 is that creative quality and variety can positively drive performance. To assist, TikTok has built various AI-powered tools such as TikTok Symphony and TikTok One.
Data shows that specific branded content in collaboration with creators drive higher view-through rates, engagement and ad recall.
Investment in upper-funnel campaigns on platforms like TikTok, Meta and YouTube can significantly influence Amazon sales, a new study by Fospha has found. On average, TikTok’s direct-to-consumer only return on ad spend (ROAS) was 2.4x; however, when amazon revenue was factored in, Unified-ROAS, as coined in the study, increased to 4.2x, showing that TikTok is having a previously unseen impact on Amazon sales.
Platform Insights: TikTok is part of a series of reports exclusive to WARC Media subscribers. This latest report follows recent Platform Insights such as Spotify and Facebook.
