It’s Monday,
The holidays were big for e-commerce. According to new data from Adobe Analytics, online retail sales rose 8.7% year over year between November 1 and December 31.
What TikTok’s legal battle means for brands in 2025
TikTok’s U.S. future hangs by a thread. With the Supreme Court likely to allow the app’s ban to take effect on Jan. 19 unless ByteDance sells its stake, brands and marketers are bracing for seismic changes. Here’s what’s at stake and how brands are preparing for the possible end of TikTok as we know it.
The countdown to ban day
TikTok’s parent company, ByteDance, faces mounting pressure from U.S. lawmakers over national security concerns tied to its Chinese ownership. Despite TikTok’s appeal to the Supreme Court, legal experts see little chance of a reversal. ByteDance shows no interest in selling, leaving TikTok in the crosshairs of a Jan. 19 deadline to be removed from U.S. app stores.
Why brands are on edge
Ad dollars in limbo: TikTok commands a modest 4% of ad spending, but its influence on engagement and cultural relevance far exceeds this figure. With no true replacement for TikTok’s blend of content and commerce, brands face rising costs as they migrate ad budgets to platforms like Instagram and YouTube.
E-commerce uncertainty: TikTok Shop, which generated $7.3 billion in U.S. sales in 2024, is a key driver of live shopping growth. If banned, its absence could stall live shopping momentum, with no clear alternative poised to fill the gap. Platforms like Whatnot, which raised $265 million last week, are positioning themselves as potential successors.
Creator-led marketing disruption: TikTok is central to influencer-driven strategies, particularly among Gen Z. If the ban proceeds, brands will scramble to maintain their connection to these audiences on rival platforms.
How brands are adapting
Diversifying platforms: Marketers are hedging their bets by ramping up investment in Instagram Reels, YouTube Shorts, and even emerging platforms like Whatnot. Lessons from TikTok’s 2020 ban in India, where creators and users migrated to Instagram en masse, are shaping strategies.
Strengthening contingency plans: Tools like media mix modeling are helping brands reallocate ad spend efficiently, minimizing disruption and ensuring campaigns can pivot quickly if TikTok disappears.
Exploring new e-commerce options: As TikTok Shop sellers face uncertainty, some are shifting focus to marketplaces like Amazon and Walmart or strengthening their direct-to-consumer channels.
A broader impact on digital advertising: The ripple effects of a TikTok ban extend beyond the app itself. Reduced ad inventory would drive up CPMs across digital platforms, intensifying competition for ad placements. Brands relying on TikTok for cost-efficient performance marketing may find themselves grappling with tighter margins.
Why it matters: TikTok’s legal challenges highlight the risks of over-reliance on a single platform. Brands must treat this moment as a cautionary tale, investing in diversified, resilient strategies. Whether TikTok survives or not, businesses need to prepare for a shifting digital landscape where flexibility and adaptability are key to thriving.
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Briefing
Amazon expands ad tech to other e-commerce sites
Amazon has introduced the Amazon Retail Ad Service, enabling other online retailers to utilize its advertising technology to display contextually relevant ads on their own websites and apps.
This service allows retailers to control ad formats, placement, and post-click customer experiences, such as directing shoppers to product pages or enabling direct additions to the cart. Early adopters include iHerb, Weee!, and Oriental Trading Company. The service operates on dedicated systems with stringent access controls to ensure retailer information remains separate from Amazon's own data. This move positions Amazon in competition with companies like Instacart and Criteo, which offer similar advertising solutions to retailers
Fabletics’ bold $1 billion play
Fabletics is on a mission to hit $1 billion in annual revenue by 2027, and the activewear brand isn’t holding back. From Nordstrom to Dubai, it’s expanding wholesale, retail, and product lines to fuel growth.
Key moves for 2025
Wholesale debut: Partnerships with Nordstrom, Von Maur, and gyms like Hotworks mark Fabletics’ first step into wholesale, starting online before hitting stores.
Global expansion: New markets include Mexico, Dubai, and Central America, with local partners managing operations.
New stores: At least 20 U.S. locations will open this year, adding to its 100+ stores, with plans to reach 250.
Lifewear focus: Its versatile lifestyle line will see significant expansion.
Membership power: Fabletics’ $59.95/month membership program, with perks like monthly credits worth $100, remains its standout feature, driving retention and growth among its 2.2 million U.S. members.
Inclusivity and affordability: With women’s sizes from XXS to 4X and a fast-growing menswear line (30% of sales), Fabletics is for everyone. Prices stay competitive—leggings cap at $110 versus Lululemon’s $148.
Smart digital moves
Influencer content: Product pages now feature videos for added engagement.
Social proof: Labels like “Trending Now” and “Limited Stock” drive FOMO.
TikTok play: Despite TikTok’s uncertain future, it remains a key channel for Fabletics.
Challenges ahead: From tariffs to TikTok’s legal troubles, Fabletics is staying agile. A shift away from China has reduced sourcing from the region to 18%, safeguarding against potential tariffs.
With aggressive plans and a clear strategy, Fabletics is primed to lead the activewear market into the future. “We’ll hit $1 billion in two years,” says global brand president Ashley Kechter.
Today’s top stories
SMT: Everything you need to know about Meta’s change in content rules.
The Information: Amazon’s dubious ad tech expansion.
Digiday: AI in 2025: Five trends for marketing, media, enterprise and e-commerce.
