Key Takeaways:
- Trump extends TikTok's sell-off deadline by 75 days amid ongoing negotiations.
- Advertisers hedge their bets as confidence in the platform's future wavers, with most major categories reducing TikTok spending in Q1 2025.
- Facebook and Instagram benefit from redirected ad budgets and rising short-form video CPMs.
Will TikTok's extended deadline be enough to save its U.S. business?
TikTok has been granted a 75-day extension by the Trump administration, buying more time for its Chinese parent company to negotiate a U.S. sale and avoid a national ban.
The announcement, made on the Trump-owned alt-tech platform Truth Social, follows weeks of tense negotiations and mounting pressure on both sides of the Pacific.
Trump is extending the deadline for tik tok for another 75 days. pic.twitter.com/TmVfRWWj2Z
— Mila Joy (@MilaLovesJoe) April 4, 2025
The move delays enforcement of a previously passed law that would force ByteDance to divest its U.S. operations or face a ban.
According to legal experts, this second extension isn't technically authorized under the bill, which has already been enacted.
However, an executive order from Trump is temporarily preventing the law from being enforced.
ByteDance confirmed in a statement that while discussions are ongoing, the matter has not been resolved, and that any agreement would be subject to approval under Chinese law.
Still, this reprieve has done little to calm brands and agencies, many of whom remain wary of the platform's future.
Advertisers Shift Spend as CPMs Fall
As political negotiations drag on, TikTok's ad business is feeling the impact.
New data shows U.S. cost-per-thousand-impression (CPM) rates on the platform have fallen by double digits since January.
This is likely a direct result of eight of TikTok's top 10 advertiser categories cutting year-over-year (YoY) spending in Q1 2025.
A short-lived service blackout earlier this year further rattled confidence and caused a temporary dip in user engagement.
Our response to the Supreme Court decision:https://t.co/xSkvkOgpuV
— TikTok Policy (@TikTokPolicy) January 17, 2025
However, even with the app still operational, many advertisers are scaling back or moving their dollars elsewhere.
Meta, in particular, appears to be capitalizing on this.
Facebook and Instagram have seen a rise in short-form video CPMs as ad budgets shift to more stable ground.
Despite the uncertainty, TikTok is still projected to generate $14.8 billion in U.S. ad revenue this year, second only to Facebook.
Facebook is more influential than TikTok for purchase decisions: https://t.co/R37ivhsbof#ChartoftheDay#newsletter#TikTok#Facebook#socialcommercepic.twitter.com/ZajPDUnYIF
— EMARKETER (@eMarketer) March 3, 2025
But without a finalized deal, brands may continue treating the platform as a high-risk channel.
With the new deadline now set for June 18, attention turns back to Washington — and whether a deal can get inked before time runs out again.
Last week, TikTok received bids from Amazon, as well as a group led by OnlyFans founder Tim Stokely.
The uncertainty stems not only from whether TikTok will be banned but also from the fact that whichever entity will buy it will have a significant impact on the platform and its users.
To mitigate potential risks, brands should diversify their ad spend across multiple platforms, prioritize stable channels with proven ROI, and maintain flexibility in their marketing strategies.
