TikTok, a Chinese video platform, has started to appease advertisers who are worried about the US government’s pressure to exit.
According to the Wall Street Journal (WSJ) on the 21st (local time), TikTok was confident that it could address national security concerns by sending an email to an advertiser asking questions related to the recent US government’s exit pressure.
“We are confident that we are on a path that fully satisfies all reasonable national security concerns of the United States,” TikTok responded in an email.
TikTok also sent advertisers a link to an animated video with instructions on how to protect user data.
This video, which includes various Stars and Stripes images, contains content that TikTok is working hard to protect user data in the United States by investing $1.5 billion (about 2 trillion won).
Previously, TikTok announced the ‘Texas Project’ to cooperate with US information technology company Oracle to protect US user data.
The main point of this project is to invest 1.5 billion dollars, put a server in the United States that stores user data in the United States, and put the content recommendation algorithm under the supervision of a third party.
TikTok was downloaded more than 4 billion times in various app stores last year, and it is estimated that there are 150 million users in the United States.
As the number of users increases, sales in the US advertising market are also increasing. In particular, TikTok has a high percentage of teenage users preferred by advertisers.
According to Insider Intelligence, TikTok is projected to have a 2.5% share of the US digital advertising market this year. Advertising revenue is expected to reach $6.83 billion (approximately KRW 8.9 trillion), up 36% from the previous year.
Although TikTok is hurriedly evolving, it seems that advertisers’ anxiety will not subside. The WSJ reported that some advertisers are trying to reduce TikTok advertising spending in preparation for possible exit.
Meanwhile, TikTok CEO Zhou Shouzhi will appear before the US House Energy and Commerce Committee on the 23rd to answer questions from lawmakers.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.