TikTok says it generated $14.7 billion for small businesses in 2023. Will lawmakers care?

As TikTok attempts to sidestep a U.S. ban or a forced divestiture by parent company ByteDance, it is pointing to the financial benefits it brings to small businesses. The video app has highlighted a study performed by Oxford Economics, which found that TikTok generated $14.7 billion for U.S.-based small businesses in 2023.

Oxford Economics’ findings are collected on a landing page that details TikTok’s economic impact. The ByteDance-owned app notes that 88% of measured small businesses saw sales increases after promoting products or services on TikTok. 45% of those businesses said that TikTok is a critical support system for their continued existence.

The research on TikTok’s economic impact stems from a survey of 1,050 small businesses and 7,500 consumers from all 50 U.S. states and Washington D.C. All participating businesses possess business accounts on TikTok. In total, TikTok claims that it has seven million active businesses on its platform. Collectively, those firms support 224,000 jobs in the U.S.

TikTok is looking to cultivate as much positive PR as possible as it defends itself against the latest Congressional attempt to limit its power. A proposal that could force ByteDance to divest its buzzy video app

has passed the House of Representatives and is on its way to the other chamber of Congress. Senators like Maria Cantwell (D-WA) have suggested that a public hearing related to TikTok could come soon, so there’s an opportunity for the app to generate goodwill among the users and businesses that could help decide its fate.

One key part of the charm offensive is a series of ads that will run in battleground states ahead of the 2024 presidential election. With its multi-million-dollar campaign, TikTok is highlighting the ways it can continue to help the American public — so long as it avoids a nationwide ban.

Meanwhile, parental rights organization American Parents Coalition has launched its own seven-digit ad blitz to expose TikTok’s faults. Between these two spendy campaigns, U.S.-based viewers can expect to see a lot more TikTok-related commentary over the next seven months.