Advertisers pull back from TikTok, boost Meta amid ban uncertainty

Already facing a sale or ban order, TikTok faced additional pressure in Q1 as major brands scaled back advertising spending and shifted budgets to Meta, according to new data.

• The pullback came due to uncertainty about the platform’s future in the U.S.
• President Trump once again extended TikTok’s ban by 75 days on Friday.

By the numbers:

• TikTok’s U.S. cost-per-thousand-impressions (CPMs) dropped sharply, posting double-digit declines since January.
• 8 of TikTok’s top 10 advertiser categories cut spending in Q1 2025 compared to Q1 2024.
• User activity dipped in January during a temporary service blackout, further rattling confidence.

The big picture. Despite the turbulence, TikTok is expected to rake in $14.8 billion in U.S. ad revenue this year, according to eMarketer. That puts it behind Facebook’s $36.9 billion but ahead of YouTube’s $9.9 billion.

Behind the shift. Advertisers aren’t abandoning TikTok entirely, but many are hedging. They’re shifting parts of their budgets to platforms with less uncertain futures.

• “No one’s acting like TikTok is gone – but no one’s pretending it’s business as usual, either,” said Raul Rios, head of strategy at independent creative agency Saylor.
• “Brands that swiftly resumed advertising on TikTok post-ban are staying the course, but many remain hesitant, keeping media spend lower despite months of attractive incentives,” said Toni Box, EVP of brand experience at Assembly.

Meta’s moment. While TikTok wobbles, Meta is cashing in. Facebook and Instagram have leaned hard into short-form video:

• Facebook and Instagram’s short-form video CPMs are rising fast as advertisers reallocate spend.
• “It’s undeniable that Facebook and Instagram have made CPM growth a key initiative,” said Jason Krebs, GM of media at Varos.

Why we care. This shifting ad spend carries immediate financial risks and strategic disruption. TikTok’s lower CPMs may seem like a short-term bargain for brands. However, if the platform faces a full ban after mid-June, those investments could evaporate. For brands that have optimized for TikTok’s unique algorithm and culture, moving to other platforms could mean starting over – new content formats, new metrics, new audiences.

What’s next. All eyes will be on Washington and ongoing acquisition talks. If a deal saves TikTok, advertisers may return. If not, Meta’s gains could become the new normal.