Tech giants vie for advertising contracts amidst political turmoil affecting TikTok.

During annual presentations to advertisers, tech and social media giants spotlighted short-form video as TikTok faces political turbulence, with platforms like Snap and Meta aiming to attract ad revenue away from their competitor.
The NewFronts events in New York unfolded just after U.S. President Joe Biden signed legislation giving ByteDance, TikTok’s parent company, a year to divest its U.S. operations or face a ban due to national security concerns. Despite this, TikTok remains resolute in its opposition to the bill.
At its NewFront, TikTok announced new partnerships in sports and entertainment, including a collaboration with NBCUniversal to share clips from the upcoming Paris Olympics.
While Emarketer estimates TikTok’s U.S. ad revenue at $8.66 billion this year, a fraction of Google and Meta’s revenue, its impact on the short-form video landscape is undeniable, prompting competitors to develop similar features.
“TikTok must reassure advertisers of its stability despite the turmoil,” remarked Emarketer principal analyst Jasmine Enberg.
Snap, owner of Snapchat, also unveiled partnerships with NBCUniversal, sending influencers to the Olympics and featuring content from Live Nation concerts.
Snap’s president of Americas and partnerships, Patrick Harris, emphasized the platform’s reliability amidst the current uncertainties.
The emphasis on professionally produced content aims to appeal to brands cautious of user-generated or AI-driven content.
“Content partnerships are crucial for brands seeking quality environments,” noted Robert Silver, head of media at Razorfish.
Meta showcased Reels, its TikTok-like feature on Instagram, during its NewFront, seeking to capitalize on potential shifts in the market.
Google reported increasing viewership of its short-form video feature, YouTube Shorts, particularly on TV screens.
Despite TikTok’s uncertain future, advertisers remain focused on the present, eager to explore innovative advertising opportunities, as expressed by Alex Stone, senior vice president of agency partnerships at Horizon Media.