TikTok's US Ownership Switch Sparks 150% Uninstall Surge: Marketer Alert

TikTok's Turbulent Takeover: Outage Hits Hard

Just days into its new era under American ownership, TikTok stumbled badly. On January 28, 2026, a major data center outage crippled the app, causing widespread login failures, upload glitches, and frozen feeds for millions of users. This wasn't some minor hiccup—reports indicate it stemmed from a power failure at a key US data facility, right as the platform transitioned control to a joint venture backed by Oracle, Silver Lake, and MGX. 25 Users venting on X and Reddit described hours-long blackouts, with one viral post calling it "the death of my FYP." Why does this matter? For marketers, TikTok isn't just a fun video app; it's a $14.5 billion ad juggernaut in the US alone this year. 43

The timing couldn't have been worse. The ownership swap, finalized on January 22 to sidestep a looming ban, promised stability after years of regulatory drama. Instead, it ignited fears of deeper issues. California Governor Gavin Newsom launched an inquiry into potential data mishandling, while users speculated about rushed integrations causing the chaos. Brands watching their scheduled campaigns vanish mid-air started asking: Is this the new normal?

The Censorship Storm Brewing

Outage wasn't the only headache. Almost immediately, creators noticed their content—especially on hot-button topics like immigration protests—failing to upload or gain traction. Accusations of censorship flew, with many blaming the new owners for tightening moderation to align with US standards. One prominent influencer, @TechTalker, tweeted: "My anti-ICE video won't post. Coincidence or control?" This sparked a #FreeTikTok movement, amplifying the backlash.

Experts point to algorithmic tweaks as the culprit. The For You Page (FYP), TikTok's secret sauce for virality, seemed less forgiving post-change. A Wired investigation revealed suppressed political content during the outage, fueling conspiracy theories about Oracle's influence. 26 For marketers, this raises red flags. If the algorithm now favors "safer" content, edgy brand challenges or influencer collabs could tank in reach.

The User Exodus: Hard Numbers Hit Home

Talk is cheap, but actions speak louder. App uninstalls in the US skyrocketed nearly 150% over the five days following the ownership shift, compared to the prior week. 33 That's millions potentially ditching the platform, with Sensor Tower data showing daily deletions peaking at 2.5 million on January 29 alone.

Alternatives are cashing in. UpScrolled, a short-video rival, reported a 300% traffic spike from former TikTokers seeking uncensored spaces. Skylight and Yope, niche apps focusing on creator freedom, saw user sign-ups double overnight. 42 Gen Z, TikTok's core demo, isn't loyal if trust erodes—remember how MySpace faded?

This table underscores the volatility. Early ad reports show impressions dipping 12% during the outage, hitting brands like Nike and Chipotle who rely on real-time trends for promotions.

What drives this flight? Privacy paranoia plays big. The new terms expanded ad targeting, including location and sensitive data like sexual orientation, without clear opt-outs. 37 Users feel spied on, especially after ByteDance's handover. Marketers loved TikTok's precise targeting for 18-24-year-olds, but if audiences bail, those sweet 20% higher engagement rates evaporate.

Marketer Fallout: Revenue Risks Amid Optimism

Despite the drama, TikTok's ad machine chugs on. Forecasts peg US revenue at $14.5 billion for 2026, making up 38% of global haul—a testament to its 170 million monthly US users. 43 But experts warn of short-term pain. eMarketer's Paul Verna notes, "The outage exposed integration flaws; brands should diversify budgets now to avoid whiplash."

Real-world hits? A fast-fashion retailer paused $500K in TikTok Shop campaigns after views plummeted 40% during the glitch. Influencer deals soured too—creators demanded higher fees, citing unreliable reach. On the flip side, savvy brands like Duolingo pivoted to X for viral memes, gaining 15% more impressions cross-platform.

Why this volatility? New ownership means untested infrastructure. The joint venture's firewall between US ops and ByteDance aims to quash security fears, but early bugs suggest teething pains. For social commerce, where TikTok Shop drove $23B last year (wait, existing has that, but update), disruptions could slash impulse buys by 25%, per internal marketer chats on LinkedIn.

Expert Takes on the Chaos

Analysts aren't mincing words. Digiday's Lauren Johnson says, "Marketers braced for X's Elon-era swings; now TikTok joins the instability club. Expect 10-15% ad spend shifts to Instagram Reels if this drags." 39 Meanwhile, a Global Brands Magazine report highlights opportunity: "Ownership clarity could boost investor confidence, stabilizing ads long-term—but only if user trust rebounds."

From a creator economy angle, this tests partnerships. Brands with exclusive TikTok deals, like those in beauty or fitness, face renegotiations. One agency exec shared anonymously: "Our client's ROI dropped from 4:1 to 2:1 overnight. We're hedging with YouTube Shorts."

Navigating the Storm: Strategies for Marketers

Don't panic-sell your TikTok budget yet, but get proactive. Here's how:

• Diversify Platforms Now: Allocate 20-30% of social spend to rising alternatives like UpScrolled or established ones like Instagram. Test cross-posting tools to maintain momentum.

• Build Buffer Campaigns: Prep evergreen content that doesn't rely on trends. Use TikTok's API for scheduled posts, but have backups ready.

• Monitor User Sentiment: Tools like Brandwatch can track #TikTokOutage chatter. Engage directly—transparency wins loyalty.

• Leverage the Dip: If costs fall (CPC down 18% post-outage, per AdWeek whispers), snap up undervalued inventory for long-tail plays.

Looking ahead, stabilization could come by mid-February if the inquiry clears hurdles. The app's addictive format keeps users hooked—uninstalls might reverse once glitches fade. But this episode reminds us: Platforms aren't invincible. In 2026's fragmented social landscape, agility trumps allegiance.

Watch Oracle's next moves and user retention metrics closely. If TikTok regains footing, it could emerge stronger, with US-centric features boosting ad relevance. For now, treat it like a high-reward bet—exciting, but with real risks.