TikTok Contributes $140M to Mississippi’s Economy: Will It Last?

• The U.S. government demands TikTok’s sale by its Chinese parent company, ByteDance, or it faces a ban in the country.
• The sale must occur by April 5, or TikTok will cease operations in the U.S.
• Concerns regarding data security have been raised by U.S. officials, claiming the app could share user information with the Chinese government.
• A ban could significantly impact many Mississippi businesses that depend on TikTok for advertising and connecting with customers.
• Oxford Economics estimates TikTok contributed $140 million to Mississippi’s GDP in 2023, supporting around 30,000 jobs in the state.

TikTok, an app overflowing with viral content across various topics, faced a blackout earlier this year. The U.S. government has instructed ByteDance to divest the popular platform or shut it down completely.

Earlier this year, a ban took effect on January 19. On his first day in office, January 20, President Trump signed an executive order postponing the deadline by 75 days. Although the app was temporarily removed from app stores for Android and iPhone users, it was later reinstated.

With over 170 million monthly users, TikTok offers entertainment, and many users utilize it to promote or run their businesses. While most videos are short-form, some can extend up to 10 minutes. This advertisement-heavy platform employs an in-app store that targets specific products to users through its algorithm.

Oxford Economics collaborated with TikTok to quantify the benefits each state derives from the app. Nationally, the data indicates an addition of $24 billion to the U.S. gross domestic product, with approximately 4.7 million jobs affected, either directly or indirectly, by the app.

Numerous Mississippi businesses utilize the app to engage their customer base and sell products.

Here’s what we know about the TikTok sale timeline, the deadline, and how the app aids Mississippi businesses in connecting with their target audiences.

What is the new deadline for the TikTok sale?

If ByteDance does not divest TikTok by April 5, the government asserts it must halt operations in the United States.

On March 9, Trump announced his administration was in discussions with four groups regarding the sale.

Why is TikTok facing a ban?

U.S. lawmakers are worried about data security risks because the platform’s ownership lies with a Chinese company. There’s a concern that the app could share American user data with the Chinese government, which poses a potential national security threat.

In 2024, Congress passed federal legislation that was signed into law by President Joe Biden.

Is TikTok prohibited in Mississippi?

The state has prohibited its employees from using TikTok on state-issued devices.

In early 2023, Gov. Tate Reeves issued this directive.

At the time, Reeves emphasized that TikTok represents a “major threat to our national security and critical infrastructure” and claimed, “It’s well-known that the Chinese Communist Party is actively attempting to steal U.S. intellectual property,” according to previous reports from the Clarion Ledger.

What makes him Tik(Tok)? Mississippi’s The Antiquated Gent shares his viral story

Does TikTok impact the Mississippi economy?

Yes, according to Oxford Economics data. TikTok assists small and medium-sized businesses throughout Mississippi.

In 2023, businesses leveraging the platform for advertising and marketing reportedly contributed $140 million to the GDP, generating around $31 million in local, state, and federal taxes.

As of December 2024, approximately 41,000 businesses in Mississippi use the app, with about 38% of small and medium businesses stating it’s essential to their operations.

About 30,000 jobs are supported by the platform, including those responsible for account management or content creation, as well as others who leverage data like user traffic.

More: Hattiesburg man quits his job to make videos on TikTok. Here’s his journey.

How do Mississippi businesses utilize TikTok?

Insights from Oxford Economics regarding small and medium businesses in the state reveal:

• 86% reported sales increases after promoting on TikTok.
• 66% experienced product sell-outs following a TikTok promotion.
• 59% stated it helped them connect with a broader audience, including previously unreachable individuals.
• 61% hired candidates they found on TikTok or connected with via the app.
• 46% indicated they need TikTok to remain competitive and enhance marketing efforts.
• 53% reported new investors or increased investments through the platform.
• 74% claimed TikTok has facilitated their growth scalability.

Contributing: Mary Boyte and Reuters reporting

Bonnie Bolden is the Deep South Connect reporter for Mississippi with Gannett/USA Today. Email her at [email protected].