TikTok is a popular short-form video app developed by ByteDance with over 1 billion monthly active users globally. The app allows users to create, share, and discover short videos usually set to music. TikTok launched its advertising platform, TikTok Ads Manager, in 2017 to allow businesses to promote their brands and products to its large user base.
However, one major limitation of TikTok Ads Manager is the inability to target users in the United States directly. Despite TikTok’s huge popularity in the US, advertisers are unable to select the US as a target country within TikTok Ads Manager due to restrictions imposed by TikTok.
TikTok’s Global User Base
TikTok has experienced massive growth in recent years, becoming one of the most popular social media platforms globally. As of 2022, TikTok has over 1 billion monthly active users worldwide according to this source. The countries with the largest number of active TikTok users include India with over 300 million, Indonesia with over 95 million, Brazil with over 75 million, and the United States with over 65 million.
TikTok has an especially strong user base among young people. Around 41% of TikTok users are between 16 and 24 years old. The app’s popularity in India and Southeast Asia skews the overall user demographics younger. Europe also represents a major market for TikTok, with over 100 million active users across the continent.
The massive global reach of TikTok presents major opportunities for marketers. However, advertisers also face limitations when trying to target users in certain countries like the USA, which we’ll explore in the next section.
TikTok’s Limited Reach in the USA
Despite its meteoric growth globally, TikTok has struggled to gain the same level of mainstream adoption in the United States as it has in other countries. Several factors contribute to TikTok’s more limited reach among American audiences compared to markets like China, India, and parts of Southeast Asia.
For starters, TikTok’s user base within the US skews very young, with around 60% being 16-24 years old according to most estimates. This narrower demographic appeal makes it challenging for brands to connect with older Millennial, Gen X, and Boomer audiences on the platform. Additionally, the US represents a relatively small portion of TikTok’s total user base at around 7%, trailing the Asia Pacific region’s 45% share.
Cultural differences have also impacted TikTok’s growth in America. The app’s viral dance challenges and lip syncing videos resonate strongly among youth audiences across parts of Asia, but have not caught on in the same way stateside. While rising in popularity, TikTok has yet to permeate mainstream culture or achieve the near ubiquity of platforms like Instagram and YouTube in the US market.
Recent regulatory scrutiny of TikTok, centered on privacy and security concerns due to its Chinese ownership, may have also contributed to slowing adoption by users and brands in the US. But the platform continues working to expand its American audience and build trust, suggesting its limited reach today does not preclude TikTok becoming a bigger player in the US social media landscape going forward.
Compliance with COPPA
The Children’s Online Privacy Protection Act (COPPA) is a U.S. law that imposes certain requirements on website operators to protect the privacy and safety of children under 13 years old. COPPA limits the ability of websites and online services to collect personal information from children without parental consent.
In 2019, the Federal Trade Commission (FTC) fined TikTok $5.7 million for violating COPPA. The FTC found that TikTok illegally collected personal information from children under 13 without parental consent What the TikTok COPPA Case Means For Your Business. As part of the settlement, TikTok was required to comply with COPPA going forward.
To comply with COPPA, TikTok has implemented an under 13 experience that prohibits collecting personal information without parental consent. However, critics argue that age verification on TikTok is still too lax. The under 13 restrictions make it challenging for TikTok to directly target or collect data on U.S. users under 13.
Data Privacy Concerns
TikTok has faced scrutiny in the US over how it collects and uses customer data. According to Kaspersky, the app has access to a significant amount of user data including browsing history, location, and contacts [1]. There are concerns that TikTok’s parent company ByteDance could be forced by China’s government to share this data [2].
In December 2022, the heads of the US intelligence community warned that TikTok poses national security risks due to its data collection practices and ties to China [2]. Some US states have banned TikTok on government devices over these concerns. The US government continues to scrutinize how TikTok handles US user data.
Geo-Targeting Capabilities
TikTok’s advertising platform has more limited ability to geographically target ads compared to other major platforms like Facebook. This is primarily due to TikTok’s user base being concentrated in certain countries and regions.
Currently, TikTok Ads Manager only allows advertisers to target ads at the country level. Targeting more specific locations like cities, regions, or zip codes is not yet possible on TikTok. This contrasts with Facebook and Instagram’s highly customizable geo-targeting that can target ads down to a 1-mile radius of a specific location.
The limited geo-targeting is due to TikTok still being in early stages of developing its ads platform globally. Most of TikTok’s users come from Asia, especially China and India. The app does not have as strong market penetration yet across Europe, and limited reach still in the USA.
Without a sizable active user base in a country, geo-targeting capabilities will be restricted. For example, TikTok currently does not allow geo-targeting of any US states or cities, only the entire USA as a whole. As TikTok continues expanding in Western markets, we can expect its geo-targeting options to improve over time.
Source: https://runneragency.com/blog/tiktok-advertising-healthcare/
TikTok’s Ongoing Development
Although TikTok’s ad targeting capabilities are currently limited in the USA, TikTok has stated they are actively working to improve this. In a recent blog post, TikTok outlined several upcoming improvements to their ads platform, with a focus on enhancing privacy protections and targeting capabilities in the US market (TikTok, 2023).
Specifically, TikTok announced they will stop allowing personalized ads based on off-platform activities for 13-15 year old users, in order to comply with COPPA regulations. They also stated they are developing new ad targeting tools that will rely on first-party data like content engagement rather than third-party data, providing marketers with relevant audiences while also enhancing user privacy (Sterling, 2023).
While TikTok’s ad targeting is still restricted compared to other platforms, these announcements signal TikTok’s commitment to expanding and improving ad capabilities for marketers in the US market going forward. As the platform continues to grow, marketers can likely expect ongoing enhancements to targeting as TikTok balances business needs with user privacy.
Alternative Strategies
Although geo-targeting capabilities in the USA are currently limited on TikTok, there are some alternative strategies advertisers can use to reach audiences in that market:
Broad targeting – Using broader targeting parameters like language, devices, interests etc. can help ads get delivered to USA users organically. Setting English as the ad language for example may allow it to reach English-speaking users in the USA.
Influencer marketing – Partnering with popular TikTok creators based in the USA presents opportunities for sponsored content and promotions. Marketers could work with influencers to create branded campaigns and leverage their audience reach in that market. This allows more controlled targeting of USA users.
Creative optimization – Tailoring ad creative, messaging and branding to resonate with USA audiences can help improve organic reach and engagement there. Even without precise targeting, optimized creative improves the chances of ads resonating with USA viewers.
Platform expansion – Running ads simultaneously on platforms like Facebook, Instagram and YouTube that allow better USA targeting provides a workaround. A cross-channel approach ensures the brand is still reaching USA audiences through other networks.
Physical events/activations – Hosting TikTok-related events or promotions in the USA market offers a way to engage audiences on the ground. Brands could partner with venues or influencers to drive awareness and content creation opportunities.
The Future
TikTok’s advertising capabilities and reach in the USA are likely to increase and improve over time as the platform evolves. While TikTok faces regulatory hurdles and data privacy concerns currently limiting its ad targeting options, the platform is actively working to expand its capabilities.
For example, in October 2022, TikTok held its inaugural TikTok World event, which highlighted the platform’s goals to become “the premiere destination for brands that are looking to connect with the next generation of consumers.” (Source) TikTok sees advertising as a major priority and revenue stream as it builds its global presence.
TikTok is also investing in new ad formats like Collection Ads that let brands showcase product catalogs. As TikTok develops more diverse and engaging ads, it could attract increased ad spend despite current limitations. Over time, TikTok may gain regulatory approval for expanded use of data and targeting once it establishes stronger data privacy protections and compliance frameworks.
While TikTok is unlikely to offer the micro-targeted capabilities of platforms like Facebook in the short term, its massive engagement and different audience base will likely make it an increasingly compelling advertising option. Brands that embrace TikTok now as it expands could gain an early edge. With time and ongoing platform development, TikTok has the potential to become a crucial advertising channel in the USA and globally.
Conclusion
In summary, advertisers cannot currently target the USA specifically on TikTok for several key reasons. First, TikTok’s user base outside of the USA and China is still growing, so their ad targeting capabilities remain limited in many regions. Second, there are concerns around TikTok’s compliance with COPPA and its handling of user data that make the platform unsuitable for USA targeting right now.
Additionally, TikTok’s geo-targeting features are still in development, restricting options for US advertisers. While TikTok is working to improve its capabilities, regulatory limitations and data privacy issues present ongoing challenges. For now, advertisers wanting to target US audiences specifically may need to explore alternative platforms or strategies. However, the situation remains fluid as TikTok evolves. With time, TikTok may eventually enable more sophisticated ad targeting in the US market.
In the meantime, this limitation exists because TikTok is still building its presence and optimizing its ad platform for the unique US regulatory environment. By summarizing the key reasons, it reiterates how TikTok’s current developmental stage prevents advertisers from targeting the USA specifically at this time.
