The news: The 2026 TikTok US Economic Impact Report highlights the platform’s role in driving discovery and visits for small and local businesses.

• 65% of TikTok users surveyed said they have discovered a local business, attraction, or event through the platform, rising to 70% among users ages 18 to 24.
• 47 million TikTok users discovered a local business after watching a TikTok video.
• 41% of users said they have visited a small business they otherwise would not have known about without TikTok, bringing in about 42 million customers for US small businesses.
• These businesses recorded a collective $35 billion in economic value from advertising on TikTok.

Why it matters: TikTok is emerging as a customer acquisition channel for local and small businesses, helping them reach consumers who may not already be searching for or following them.

• TikTok offers features like a local feed for users who share location, unlocking access to content relevant in the user’s immediate area and helping local businesses better reach nearby potential customers.
• The platform’s commerce capabilities have shown strong results for small businesses. Seventy-two percent of brands discovered by US TikTok Shop users in the year preceding May 2026 were small businesses, per GlobalData and TikTok Shop. Meanwhile, 89% of small- and medium-size businesses (SMBs) said sales increased after advertising on TikTok.

That effectiveness appeals to local and small businesses that are shifting away from traditional digital marketing strategies, as TikTok’s discovery model can help them connect with new customers without relying as heavily on search intent and large, established social followings.

Recommendations for brands:

• Use local data to prioritize specific markets and tailor outreach. TikTok’s location-based signals can help brands identify where awareness and engagement are weaker to better adjust creative, offers, and targeting by market. That data can be paired with relevant content and community engagement to give nearby consumers a reason to visit and buy.
• Partner with microinfluencers within specific communities. Creators with smaller but highly engaged local followings can lend credibility to brands within their communities and amplify their messages with audiences more likely to convert.
• Small brands can emphasize authenticity to differentiate from larger competitors. TikTok users often discover smaller brands they may not encounter elsewhere on the platform, giving SMBs more opportunity to stand out by highlighting qualities that make them distinct. A strong brand mission, sourcing or manufacturing processes, and ties to local communities could give consumers more reason to choose a brand.

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