The resolution of a long-running national security debate surrounding TikTok appears to have unlocked a surge in advertising activity on the platform. Data analyzed by Billion Dollar Boy reveals that sponsored content volume on the popular video-sharing app rose 16.8% in the four weeks following the completion of a deal establishing a majority American-owned joint venture in January. This rebound in TikTok sponsored content signals a renewed confidence among brands and creators after months of uncertainty about the app’s future in the United States.
The agreement, finalized on January 22, 2026, stemmed from an Executive Order signed by former President Donald Trump on September 25, 2025, which sought to address concerns over data security and potential Chinese government influence. The new structure spins off TikTok US as a separate entity from the global TikTok platform, which remains under the ownership of Bytedance. TikTok US is now operated by a joint venture led by Silver Lake, Oracle, and MGX, collectively holding a 45% stake, while Bytedance retains a 19.9% share. The deal aimed to alleviate national security concerns through defined safeguards regarding data protection, algorithm security, content moderation, and software assurances for US users.
A Dip Before the Rebound
The increase in sponsored posts represents a recovery from a dip experienced in the months leading up to the deal’s finalization. According to Billion Dollar Boy’s analysis, the number of US sponsored posts fell from 1,403 to 1,339 in the two weeks immediately preceding the agreement. Though, by Week 4 after the deal closed, volume had climbed to 1,564 – a 16.8% increase compared to the pre-deal baseline. The number of active US influencers posting sponsored content also mirrored this trend, dropping from 1,120 to 1,075 before rebounding to 1,248, a 16.1% increase.
Engagement Rates Show Modest Improvement
Alongside the increase in volume, US engagement rates on sponsored content saw a modest improvement, rising from 6.6% before the deal to 6.9% afterward. This suggests that the resolution of the ownership dispute may have rekindled user enthusiasm for the platform, translating into greater interaction with branded content. The UK market experienced a similar increase in sponsored post volume (14.6%) and active influencers (17.9%) over the same period, but without the accompanying lift in engagement rates. This difference suggests the US engagement bump was specifically tied to renewed optimism surrounding the deal’s resolution, as reported by Vogue.
Creator Marketing Remains Key
The positive trend in TikTok’s sponsored content activity aligns with broader forecasts for the platform’s advertising revenue. Analysts at eMarketer predict that TikTok’s US ad revenues will grow 27.9% in 2026, a significant increase from the 16.1% growth experienced in 2025. This growth is expected to be driven, in part, by increased investment in creator marketing. According to CreatorIQ, brand marketers identify boosting creator posts (39%) and branded sponsored posts featuring creators (38%) as the most effective creator marketing activities for driving return on investment. Influencer marketing spending on TikTok is projected to reach $2.9 billion in 2026, according to eMarketer forecasts.
What This Means for Brands and Creators
The stabilization of TikTok’s US operations provides a more predictable environment for brands and creators who rely on the platform to reach audiences. For years, administrative uncertainty left many questioning the long-term viability of TikTok in the US market. The new ownership structure, while not without potential changes to the algorithm or content moderation policies, removes the existential risk that previously loomed over the platform. Brands and creators will now need to adapt to the evolving landscape, but can do so with greater confidence knowing that TikTok is likely to remain a significant force in the social media landscape.
However, some users have expressed concern about potential changes to TikTok’s algorithm under the new ownership, which could disrupt the personalized content experience the app is known for. Adapting to a new algorithm will require creators and brands to quickly understand what types of content perform well in the evolving environment.
The deal’s completion also comes after a period of intense scrutiny regarding data privacy and security. The joint venture agreement includes provisions for comprehensive data protections, algorithm security, and software assurances for US users, aiming to address these concerns. The effectiveness of these safeguards will be closely watched by regulators and privacy advocates in the coming months.
As TikTok navigates this new chapter, the platform’s ability to maintain its popularity and attract advertising revenue will depend on its ability to balance the demands of national security with the expectations of its users and creators. The coming year will be crucial in determining whether TikTok can successfully transition into its new Americanized form and continue its growth trajectory.
The next key development to watch will be the implementation of the data security and algorithm safeguards outlined in the joint venture agreement. Further details on these measures are expected to be released by TikTok US in the coming months.
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