MAQUOKETA, Iowa (KCRG) – Advertising on social media isn’t a new concept. But some of Iowa’s small business owners say TikTok is proving especially useful.
And it’s bringing millions of dollars into Iowa’s economy.
“It lends hundreds of millions of dollars to our state GDP every year, so it definitely has a strong economic impact in the state of Iowa.” said Iowa State Senator and technology Committee Chair Christ Cournoyer.
According to a survey done by TikTok and Oxford Economics, the app brought in $200 million dollars and supported over two thousand jobs around the state in 2023.
And some small business owners that use the platform say they’re dependent on it.
Maddix Stovie says 95% of her sales come from TikTok.
“I would not exist as a business without TikTok, and I’m not just saying that. It’s like, TikTok has allowed me to drive sales that are unmatched to any other.” she said.
But back in April, legislators from Iowa voted to ban TikTok in the U.S. if it didn’t cut ties with its Chinese parent company, ByteDance in 9 months.
If this happens, it could force some of these small business owners to make huge changes to their business models. Like Linda Tong, who says more than 70% of her sales now likely come from the platform.
“It honestly scares me a little bit because TikTok has been such a catalyst for my business… I really hope that something doesn’t happen because I would have to pivot in a large way. Probably look towards paid advertising or find another platform.” Tong said.
The app could be banned as early as January, but TikTok’s CEO says he plans to take legal action to keep it available.
But until then, it’s unknown just how many businesses could struggle or how much money Iowa’s economy could miss out on.
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