Data Privacy Concerns
One of the biggest drawbacks of using TikTok for business is concerns around data privacy. TikTok collects a significant amount of data on its users, including location information, browsing history, and user-generated content 1. Much of this data is then shared with TikTok’s parent company, ByteDance, located in China. This raises fears that the Chinese government could gain access to TikTok user data 2.
Specifically, TikTok has been criticized for collecting more data than necessary from mobile devices, including MAC addresses and IP addresses. There are concerns that this data could be used to track users across the internet or map their social connections 3. Additionally, TikTok’s privacy policy allows it to share international user data with ByteDance, which must comply with Chinese law and government data requests.
These factors cause unease, especially for businesses wary of associating their brand with an app that’s raising bipartisan data privacy concerns in the US government. It may be wise for businesses to limit their presence on TikTok until stronger data privacy protections are implemented.
Algorithm Changes
One of the biggest disadvantages of using TikTok for business is the platform’s frequent algorithm changes which can suddenly sink content reach and engagement (Source). Unlike platforms like Instagram and Facebook that make minor tweaks, TikTok completely revamps their algorithm multiple times per year. This makes it very difficult for creators to maintain an audience and build a consistent growth strategy.
TikTok’s core algorithm focuses on user engagement metrics like likes, comments, shares, finishes, and follows (Source). So major algorithm shifts can cause previously successful content to stop being recommended to viewers. Many creators have experienced overnight drops in viewership and engagement through no fault of their own.
Because the TikTok algorithm favors new accounts and new content, maintaining reach long-term is a big challenge. You constantly have to keep up with the latest trends and adjust content strategies to match the algorithm. For businesses seeking steady organic growth, these unpredictable changes make it hard to rely on TikTok.
Limited Analytics
One of the major disadvantages of using TikTok for business is the limited analytics capabilities compared to other platforms [1]. While TikTok provides basic analytics like views, likes, comments, and shares, it lacks the in-depth insights offered by platforms like Facebook and Instagram. This makes it extremely difficult for businesses to track performance and measure return on investment from TikTok marketing efforts [2].
Key analytics that are missing on TikTok include demographics beyond age and gender, traffic sources, conversion tracking, and sales/lead attribution. Without access to this data, businesses are operating in the dark when it comes to assessing campaign impact and optimizing content strategy.
Overall, the limited analytics make TikTok disadvantageous for performance marketing objectives compared to other major social platforms. Businesses that rely heavily on in-depth data to inform decisions may struggle to extract maximum value from TikTok given its current analytics capabilities.
Short Videos Only
One of the biggest disadvantages of using TikTok for business is the restrictive video length. As of April 2023, TikTok limits videos to a maximum of 60 seconds (Cite: https://www.androidauthority.com/how-long-are-tiktok-videos-3163309/). While brevity and concise messaging can be effective, a 60 second maximum may not work for all brands and products. Some types of content simply require more time to demonstrate features, provide context, tell stories, etc. This tightly constrained format makes it challenging to create comprehensive marketing videos on TikTok.
For example, a 60 second time limit may not allow for adequately showcasing products like software platforms, automobiles, or large equipment. Complex services and detailed explanations could also be difficult to convey properly. This forces brands to find workarounds like multi-part videos, which introduces complications. Consequently, the hyper-short video restriction can undermine marketing campaigns on TikTok.
Young User Base
One of the biggest disadvantages of using TikTok for business is that the majority of users on the platform are young. According to TikTok Statistics – Everything You Need to Know [Jan 2024], 61% of TikTok users are between the ages of 10 and 29. Only 21% of users are over the age of 30. This means that most TikTok users are in their teens, twenties, or younger.
The young demographic on TikTok poses a challenge for brands looking to use the platform to reach a wider audience. If your target customers are middle-aged or older, they simply may not be on TikTok in high numbers. Even though TikTok’s user base is growing, it still skews young. Brands with products targeted at older demographics may struggle to gain traction and visibility on TikTok due to the current user base.
In summary, TikTok’s young user base limits its effectiveness for brands trying to reach older audiences. Brands need to carefully evaluate if TikTok’s current demographics match their target customer base before investing heavily in the platform.
Copyright Challenges
TikTok has strict policies around copyrighted material, especially when it comes to music. Users cannot simply upload videos with popular songs due to licensing restrictions. According to Bloomberg Law, major record labels have started filing lawsuits against companies using copyrighted music without proper licensing. Creators hoping to reuse popular songs in their TikTok videos often find the audio muted or removed after posting. As explained by Musicbed, TikTok’s automated copyright detection system will flag any unauthorized uses of copyrighted music. The restrictive nature around music licensing makes it extremely difficult for users to legally repurpose popular songs, which can limit creative options.
Ad Competition
With over 1 billion monthly active users, TikTok has become an incredibly competitive platform for advertising. Big brands are flocking to buy ad space, resulting in high costs and limited inventory. According to Influencer Marketing Hub, the minimum spend for a TikTok ad campaign is $500. CPM rates start at around $10. This means smaller businesses can get priced out of running effective campaigns.
Major brands like Coca-Cola, Chipotle, Nike and more have all invested heavily in TikTok ads. They have big budgets to contest the limited ad inventory available. As Varos notes, the more competitive an ad auction is, the higher the cost per impression climbs. With so many big brands bidding, costs keep rising for businesses trying to compete.
Hate Speech and Toxic Culture
TikTok has struggled to moderate hateful and dangerous content on its platform. Despite banning explicitly hateful ideologies like neo-Nazism and white supremacy, extremist content continues to thrive on TikTok according to research from the Institute for Strategic Dialogue (ISD) [1]. The ISD found numerous examples of anti-Semitic, white nationalist, and male supremacist content with millions of views and hundreds of thousands of likes.
In addition, many Black TikTok creators have criticized the platform’s hate speech detection tool for unfairly flagging their content related to Black Lives Matter while allowing explicitly racist videos to remain [2]. This has furthered perceptions that TikTok’s content moderation is inadequate at protecting users from harassment and discrimination.
TikTok claims it is working to improve its content moderation policies and technology to better handle hate speech and extremism. However, the platform’s youthful demographics combined with its massive reach continues to make it vulnerable to the spread of toxic and dangerous content.
Security Vulnerabilities
TikTok has faced scrutiny over potential security vulnerabilities that could expose user data and activity. In August 2022, Microsoft reported finding high-severity security flaws in TikTok that could have enabled attackers to take over user accounts and manipulate content (Source). Another study by Imperva Red Team in May 2022 revealed a vulnerability that allowed pulling information from user profiles without consent (Source). According to CVE Details, over 20 vulnerabilities have been reported in TikTok to date, including critical severity bugs that could lead to remote code execution (Source). While TikTok has worked to patch reported issues, the existence of vulnerabilities raises concerns, especially given the app’s access to sensitive user data.
Lack of Humanization
One disadvantage of using TikTok for business is the lack of humanization compared to other social platforms. With most videos limited to 60 seconds or less, it can be harder for brands to showcase their human side and make meaningful connections with their audience. Other platforms like Instagram and YouTube tend to have longer-form video content where brands can share stories and go behind-the-scenes, allowing viewers to get to know the people behind the business. But the ultra-short format of TikTok can make it more challenging to form those personal bonds.
As social media marketing expert Jenn Herman explained, “it’s harder to humanize a brand on a platform like TikTok. You don’t always have enough time in a 15 or 60 second video to show personality or make an emotional connection like you can on Instagram or YouTube.” (source)
Establishing human connections and showcasing the personalities behind a business is key for branding and relationship-building. But the brevity and fast-paced nature of TikTok can make it more difficult compared to other platforms. This lack of humanization is a notable disadvantage for brands looking to deeply engage their audience.
