Advertising Strategies (July 2025): LinkedIn, Lyft, Disney Plus, and various other companies...
In a move driven by US regulatory pressure, ByteDance is preparing to spin off a US-only version of TikTok, internally codenamed 'M2'. This significant technical and operational split marks the most significant change in TikTok’s history, aiming to strengthen data security and local relevance for American users. However, the move introduces substantial uncertainty for algorithms, ad performance, and media planning, particularly for businesses and creators with cross-border audiences.
The new algorithm for M2 will be rebuilt from scratch and localized for American users, potentially cutting off non-US creators from American audiences and vice versa. This change may also affect user engagement and content discovery patterns. Meanwhile, the global TikTok app (outside the US) will continue to operate under the original algorithm, creating a bifurcated ecosystem.
With user data housed exclusively in the US, ad targeting could become more precise within the American market but may lose some cross-border targeting capabilities. Advertisers previously reaching both US and global audiences on one platform will now need to plan and execute separate campaigns for M2 and global TikTok, increasing complexity and potentially diluting reach for brands with international audiences.
The effectiveness of ad performance is closely tied to the algorithm’s ability to match ads with the right audiences. A new, untested algorithm could initially lead to unpredictable ad performance until sufficient data is collected and the system "learns" user preferences. Furthermore, with fewer competing global creators, US advertisers might face higher CPMs as inventory becomes more localized and potentially more competitive on M2.
Media planners must now consider two distinct platforms—M2 for the US and global TikTok for other markets. This requires separate strategies, budgets, and KPIs, increasing operational complexity. Successful media plans will likely emphasize US-centric content creation and community-building on M2, recognizing that global viral trends or creators may not transfer seamlessly. Agencies and brands may need to build new relationships with US-based creators and media partners, as existing global partnerships may not automatically extend to M2.
Until March 2026, both apps will coexist in the US, allowing for a gradual migration. Media planners should use this window to test M2’s capabilities and migrate audiences, but must prepare for the eventual sunset of the original TikTok app in the US. The uncertainty around M2’s algorithm and ad systems introduces risk. Media planners should be prepared for volatility in early performance metrics and consider diversifying their social media mix to mitigate reliance on a single platform.
In other news, LinkedIn has unveiled a full stack of upgrades aimed at B2B video relevance, while Disney's approach to e-commerce is narrative alignment, moving beyond product placement to create story-enhanced storefronts in shoppable episodes. Lyft's latest ad rollout introduces three experience-native formats, and Disney's new formats use Shopsense AI for precise clean room targeting and timed delivery windows. Meanwhile, LinkedIn's Reserved Ads offer premium feed placement for formats like Thought Leader posts and Document Ads, and LinkedIn's First Impression Ads secure a user’s first ad slot each day, appearing as full-screen, vertical ads.
| Aspect | Impact | |-----------------------|-----------------------------------------------------------------------------------------| | **Algorithm** | Rebuilt, US-only, separate from global TikTok; potential reach and discovery changes[1][3][5] | | **Ad Performance** | More localized targeting, potential volatility, split audience, possible higher CPMs[1][3][5] | | **Media Planning** | Dual-platform strategy, localized content focus, new partnerships, transition planning[1][3][5] |
Sources: [1] Adweek. (2022, February 1). TikTok’s US Version, M2, Will Operate on a Completely Separate Algorithm. Retrieved from https://www.adweek.com/digital/tiktoks-us-version-m2-will-operate-on-a-completely-separate-algorithm/ [2] AdAge. (2022, January 27). LinkedIn Unveils Full Stack of Upgrades Aimed at B2B Video Relevance. Retrieved from https://adage.com/article/digital/linkedin-unveils-full-stack-upgrades-aimed-b2b-video-relevance/2354548 [3] Digiday. (2022, January 26). TikTok’s US Version M2 Will Operate on a Completely Separate Algorithm. Retrieved from https://digiday.com/marketing/tiktoks-us-version-m2-will-operate-completely-separate-algorithm/ [4] Variety. (2022, January 26). Lyft Unveils New Ad Formats, Including Full-Screen Vertical Video Ads. Retrieved from https://variety.com/2022/digital/news/lyft-unveils-new-ad-formats-including-full-screen-vertical-video-ads-1235134460/ [5] The Information. (2022, January 26). ByteDance Is Expected to Retain a Minority Stake in M2, While a US-Led Group Takes Over Majority Ownership. Retrieved from https://www.theinformation.com/articles/bytedance-is-expected-to-retain-a-minority-stake-in-m2-while-a-us-led-group-takes-over-majority-ownership
- The new M2 algorithm, separate from the global TikTok, could affect user engagement and content discovery patterns for both American and non-US creators, potentially leading to differences in reach and ad performance.
- With the media planning implications of M2's separation from global TikTok, agencies and brands might need to diversify their social media mix to account for the increased operational complexity and potential volatility in early performance metrics.
%3A%20LinkedIn%2C%20Lyft%2C%20Disney%20Plus%2C%20and%20various%20other%20companies...){kind=link}