Dividends and Advertisers eyeing rival apps if US bans TikTok

In every industry, the government pays an important role, for business ideally it is a supporting role, but not always. In the world of government, various political issues rise up and some form of regulation is called for to save the souls of the young people. For those of us who pass being young but not young at heart, often times the regulations called for is just noise, but to advertisers it means something else. Every since the introduction of the internet, the segmentation of media which appeals to groups of people has become ever more concentrated.

In an article by Shelia Dang of Reuters, if the US government tries to ban or lessen the impact of TikTok, then advertisers will need to advertise somewhere else. TikTok is a social media company which is owned or controlled by a Chinese company – ByteDance and in the government’s eyes that is connected to the Chinese government. For some that means Chinese government control.

The more important aspect is TikTok appeals to young people, and young people spend money which interests brands and advertisers. TikTok’s main rivals are Meta’s Reels and You Tube’s Shorts.

While advertising budgets are planned in advance, brands can quickly place or pull ads on social media to reason to events. Insider Intelligencer estimates TikTok will generate $6.8 billion in US ad revenue in 2024. The issue is would young people switch to the competition?

Linking to dividend paying stocks, all industries have alternatives it is often the leading market company has a dominance, but things can change sometimes management makes mistakes, the government changes the rules, and in the internet age, things can change quicker than before. For your investments, ensure you have reasonable and easy to achieve metrics of how the company is doing to making profits to pay your dividends. If the metrics are reached, you can do little until the next quarter and the dividends will allow you to time to do the things you want to do.

There are more questions than answers, till the next time – to raising questions.

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