TikTok was ordered to close its Canadian operations. Here’s what this means for advertising.

In a major decision announced this week, the federal government is banning TikTok’s operations in Canada, citing security concerns amid an ongoing review of the platform, its parent company, ByteDance, and its potential links to the Chinese government.

TikTok has become a powerful tool for businesses and organizations to reach a vast audience. Recent data indicates that there are currently 14.8 million registered users in Canada, the vast majority of whom are under 40.

Although Innovation and Science Minister François-Philippe Champagne was quoted in the statement saying that “Canadians’ access to the TikTok application or their ability to create content” will not be blocked, the company’s offices in Vancouver and Toronto will be shuttered immediately.

The impact on other areas of their business operations—including advertising to Canadian users—has not yet been made clear. Here’s what we do know about the decision’s implications for marketers:

Will Users Leave the App?

There is no clear evidence to suggest that Canadians are leaving the app en masse. Even after the Canadian government banned the app from all government devices and signalled its concerns about privacy, alongside moves by the U.S. government to ban it entirely as early as January 2025, we have not seen an exodus from the platform.

With that being said, this week’s federal decision could have a chilling effect on some users, especially older individuals who may be more concerned about online security and privacy.

Will Brands Leave the App?

While many users will remain ambivalent about security concerns, organizations may be more sensitive to the issue. Case in point: after a tumultuous year for X (formerly Twitter), dozens of high-profile businesses, media companies, and organizations left the platform.

Advertisers may increasingly prioritize platforms that ensure higher data security standards to align with consumer and government expectations. This could lead to more rigorous audits of advertising channels, with brands opting to invest in platforms that offer enhanced privacy assurances—potentially favouring short-video platforms with more transparent data policies, such as Instagram Reels and YouTube Shorts.

The Bottom Line: Agility is Key

With the future of TikTok potentially at risk, agencies and brands will need to remain agile, experimenting with a diverse mix of platforms and formats to ensure continued engagement with Canadian audiences. At spark*, we’re continuing to monitor this situation closely for any new developments.

Wondering how to navigate this announcement, while reaching your key audiences through short form video? We’d love to chat. Reach out to us here.