Helping American small and medium-sized enterprises grow and creating value for consumers.

Key Chapter Title List

1. TikTok's Economic Impact
2. The Economic Impact of SMBs Using TikTok for Growth
3. The Economic Impact of TikTok's Operational Activities
4. The Next Frontier in Media & Entertainment
5. TikTok's Core Values (Learn, Discover, Connect)
6. The Advertising & Marketing Space
7. Economic Benefits for SMBs, Users, and Local Businesses
8. Diversity Characteristics of U.S. TikTok Users and SMBs
9. Industry Segment Research Findings
10. Quantitative Analysis of TikTok's Value to Consumers
11. Research Methodology & Economic Impact Assessment Framework
12. Conclusion and Future Outlook

Document Introduction

Since entering the U.S. market in 2018, TikTok has rapidly evolved from a purely entertainment platform into a vital growth tool for small and medium-sized businesses (SMBs). As of Q1 2024, the platform boasts 170 million active users in the U.S., including over 7 million businesses across all 50 states, establishing itself as a key digital hub connecting individuals, businesses, and global audiences.

To precisely quantify TikTok's economic value, Oxford Economics collaborated with TikTok in 2023 on a dedicated study. Through independent surveys of 1,050 TikTok-using SMBs and 7,500 platform users, the research systematically analyzed the platform's direct, indirect, and induced impacts on the U.S. economy. Focusing on 12 core industries and employing the IMPLAN economic impact model, the study built a comprehensive assessment framework across dimensions such as GDP contribution, employment support, and tax revenue. Data collection was completed prior to the launch of TikTok Shop, ensuring the analysis's independence and focus.

The core findings reveal that in 2023, U.S. SMBs generated $14.7 billion in revenue growth through paid advertising and marketing investments on TikTok. Combined with organic growth driven by the platform's free services, this contributed a total of $24.2 billion to U.S. GDP, supported 224,000 jobs (including 98,000 direct SMB jobs), and generated $5.3 billion in tax revenue for federal and local governments. Food & beverage, health & medical, and business services were the most significantly benefited industries, with California, Texas, and Florida emerging as core regions of economic impact. Furthermore, TikTok's own operational activities (including over 6,700 direct employees and nationwide supply chain procurement) contributed an additional $8.5 billion to U.S. GDP in 2022, supporting 59,000 jobs and $2 billion in tax revenue.

At the user value level, the study employed a "willingness-to-pay" quantification method, finding that the average U.S. adult user is willing to pay $25 per month to retain access to TikTok. This extrapolates to an annual total value of $117 billion created for U.S. users by the platform. Users discover new products and local services and make more informed purchasing decisions through the platform, while SMBs leverage TikTok to reach diverse audiences, build brand partnerships, and optimize marketing efficiency. 88% of surveyed businesses reported increased sales after promotion, and 55% considered the platform crucial to their business survival.

The report also highlights TikTok's role in promoting inclusive growth: minority-owned SMBs, female entrepreneurs under 30, and older operators all achieved significant gains through the platform. Among these, 83%-88% of minority-owned businesses reported sales growth, and 57% of Black-owned businesses deemed TikTok indispensable for their survival. This cross-demographic, cross-industry economic empowerment establishes TikTok as a growth engine that cannot be ignored within the U.S. economy. Future feature upgrades (such as e-commerce integration) are expected to further expand its economic influence.