TikTok loses Gen Z confidence following ownership change and sponsored content surge

The news: Gen Z’s TikTok appetite may be waning, according to a report from The Harris Poll cited by Mediapost.

  • 79% of Gen Z TikTok users claimed they “missed the early days” of the popular short-form app before it became dominated by brand partnerships and ecommerce platform TikTok Shop.
  • 41% expressed nostalgia for a TikTok that had fewer brand sponsorships and ads; 34% miss relatable, unfiltered content.
  • 33% miss the period before TikTok Shop was introduced, while 27% stated a desire for less influencer content.

Gen Zers have also lost trust in TikTok since its transition to US ownership. Seventy-four percent now think more critically about how they engage with the app; 60% trust TikTok less.

  • 64% say they’ve become more conscious of their data since the ownership change.
  • More than half feel the platform faces more censorship than a year prior; 28% of Gen Zers are more worried about free speech on the platform after the transition.
  • Nearly three-quarters indicated that TikTok’s current in-feed content comes off as performative; over half say that content feels more commercial.

Behind the attitude shift: TikTok, once one of the most reliable ways for reaching Gen Z users online, is seeing loyalty wane over the rise of branded content, lingering distrust of new ownership for US users, and concerns about the app’s famous For You algorithm.

  • Brand-sponsored influencer content faces widespread distrust even as creator marketing becomes increasingly important to brands. Twenty-six percent of US consumers distrust influencer marketing, above 11% for advertising overall, per the National Advertising Division of BBB National Programs.
  • Lack of transparency amplifies concerns. Sixty-four percent do not trust influencers who fail to disclose their relationships with brands; 70% report negative sentiment toward influencers after learning of undisclosed arrangements.
  • New ownership still threatens to alienate TikTok’s core, younger, often left-leaning userbase. Its largely conservative US ownership, helmed by the likes of Oracle and Silver Lake, are heightening younger users’ concerns about content moderation and free speech.
  • TikTok’s changes to its US For You algorithm is driving users away from the platform. Thirty-three percent of Gen Z users say they are now forced to train their algorithm because it lacks the relevance and personalization it used to have, per The Harris Poll’s report.
  • This comes after the transition to US ownership caused widespread complaints about a faulty recommendation algorithm, contributing to app uninstalls surging 150%.

Implications for marketers: Gen Z’s newfound skepticism for TikTok means marketers must now reassess TikTok-heavy investments and budget allocations compared with other platforms.

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TikTok loses Gen Z confidence following ownership change and sponsored content surge