TikTok On The Clock, Again: Ban Impact On Downloads, Ad Spend & More

What happens when the world’s most addictive app disappears — even for a few hours? That thought experiment became a reality earlier this year, as video sharing behemoth TikTok was briefly taken offline. Parent company Bytedance had refused a government mandate to sell, instead choosing to be delisted. Users of the social network were then greeted with a pause in service, along with a blunt message: “A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can't use TikTok right now.”

An Executive Order soon extended that deadline to April 5th, ending TikTok’s brief hiatus. However, as the new ultimatum looms, users are again left wondering as to the fate of one of the world’s largest social media apps — and making decisions about where they’ll bring their dollars and attention in the event of a permanent ban. 

Luckily, the hours TikTok did spend offline provide us with an illuminating case study — displaying the observed impact of the app’s absence on competitor performance, advertising spend, and engagement. Our report, “TikTok on the Clock, Again” unpacks data from before, during, and after the January 19th delisting, providing brands with the foresight necessary to act strategically, no matter Bytedance’s ultimate fate. 

Here are a couple key takeaways from the report: 

Instagram Swoops In: Competitors Capitalize on Engagement 

For the four weeks (24 days, to be exact) following TikTok’s outage, the app was still unavailable for download on the app stores. Throughout this period of inaccessibility, Instagram was the biggest beneficiary. The Meta-owned social network saw installs jump 21%, and time spent increase by 4%. This shift suggests that users see Instagram, including its short-form video feature “Reels”, as a viable TikTok alternative. Instagram also saw gains in terms of ad dollars being funneled towards the platform, as many advertisers who pulled back spending on TikTok instead devoted those funds to Instagram. The caveat, however, is that when TikTok came back, it came back swinging: installs surged 82% in the 6-week period following the hiatus. 

In-App Purchase Revenue Shifts 

To this day, in-app purchase (IAP) revenue on TikTok is down a full 20% when compared to pre-ban levels. That’s a significant chunk of money, considering it boasted 1.7 billion dollars in IAP revenue last year — making it the top performer in its category. This spend, which consists primarily of users either “tipping” their favorite creators, or paying to boost their own posts, appeared to shift towards other platforms during the delisting period; Youtube and X saw IAP revenue jump 9 and 8%, respectively. The really interesting part? Those gains didn’t stop once TikTok was reintroduced, suggesting longterm stickiness for these competitors. 

The full report dives into: 

📉 Ad spend shifts across TikTok, Instagram, and other platforms — including which of the top 10 advertiser categories pulled back, and which leaned in

⏱️ Time spent trends across platforms during and after TikTok’s outage — and what that says about user loyalty

📲 Competitive download data before, during, and after the delisting — with context on rebound surges and which apps gained the most

💰 Ongoing IAP revenue patterns, even after TikTok's return to the app stores

📍 Strategic recommendations for advertisers navigating an unpredictable social landscape

Download the report here to access the full suite of insights — before time runs out!