April 22, 2025

TikTok ad spend increased in Q1 despite regulatory woes

a blue megaphone is surrounded by squares and a dollar sign

TikTok—with its highs and lows—has captivated users, advertisers, and the media for years.

The wildly popular app has over two billion users worldwide, including more than 135 million in the U.S., and plays a major role in shaping internet culture, music, and fashion trends. TikTok’s appeal is stronger than ever among American teens: 47% ranked it as their favorite social app in an April 2025 survey.

But the app’s U.S. operations have been fraught with controversy. TikTok briefly went dark in early 2025 after months of failed negotiations between its Chinese parent company, ByteDance, and the U.S. government.

Incredibly, the January shutdown didn’t shake advertisers. According to Ramp data, more than 65% of businesses actually increased their TikTok ad spend that same month.

The rise and resilience of TikTok

Despite ongoing political scrutiny, TikTok has grown at a remarkable pace.

Chinese tech company ByteDance launched TikTok internationally in 2017 and quickly established a foothold in the U.S. market by acquiring an American lip-syncing app.

TikTok rapidly increased in popularity among Gen Z users and experienced a massive surge in engagement during the COVID-19 pandemic. It became the most downloaded app globally in 2020 and surpassed 1 billion monthly active users by September 2021.

In 2020, the Trump administration announced its intention to shutter TikTok in the U.S. market due to national security concerns.

The attempt wasn’t immediately successful, but in 2024, President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act. The law mandated that ByteDance sell TikTok’s U.S. operations within 270 days or face a nationwide ban.

All of this came to a head on the sell-or-ban deadline, January 18, 2025. TikTok became unavailable in the U.S. for about 12 hours before receiving an extension from President Donald Trump. Clearly, advertisers breathed a sigh of relief and continued to spend: TikTok was the top digital advertising platform in Q1.

The future of TikTok ads

The government’s extended sell-or-ban cutoff was April 5, 2025. But, like in January, the deadline was pushed back to allow for further negotiations, this time until June 19.

TikTok’s long-term future in the U.S. is uncertain, but for now, it’s still running—and drawing in advertisers.

Try Ramp for free
Share with
Ramp team
The Ramp team is comprised of subject matter experts who are dedicated to helping businesses of all sizes work smarter and faster.
Ramp is dedicated to helping businesses of all sizes make informed decisions. We adhere to strict editorial guidelines to ensure that our content meets and maintains our high standards.

We’ve simplified our workflows while improving accuracy, and we are faster in closing with the help of automation. We could not have achieved this without the solutions Ramp brought to the table.

Kaustubh Khandelwal

VP of Finance, Poshmark

Poshmark

Our previous bill pay process probably took a good 10 hours per AP batch. Now it just takes a couple of minutes between getting an invoice entered, approved, and processed.

Jason Hershey

VP of Finance and Accounting, Hospital Association of Oregon

Hospital Association of Oregon

When looking for a procure-to-pay solution we wanted to make everyone’s life easier. We wanted a one-click type of solution, and that’s what we’ve achieved with Ramp.

Mandy Mobley

Finance Invoice & Expense Coordinator, Crossings Community Church

Crossings Community Church

We no longer have to comb through expense records for the whole month — having everything in one spot has been really convenient. Ramp's made things more streamlined and easy for us to stay on top of. It's been a night and day difference.

Fahem Islam

Accounting Associate, Snapdocs

Snapdocs

It's great to be able to park our operating cash in the Ramp Business Account where it earns an actual return and then also pay the bills from that account to maximize float.

Mike Rizzo

Accounting Manager, MakeStickers

Makestickers

The practice managers love Ramp, it allows them to keep some agency for paying practice expenses. They like that they can instantaneously attach receipts at the time of transaction, and that they can text back-and-forth with the automated system. We've gotten a lot of good feedback from users.

Greg Finn

Director of FP&A, Align ENTA

Align ENTA

The reason I've been such a super fan of Ramp is the product velocity. Not only is it incredibly beneficial to the user, it’s also something that gives me confidence in your ability to continue to pull away from other products.

Tyler Bliha

CEO, Abode

Abode