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TikTok is touting its economic impact in Michigan and elsewhere through a newly commissioned report, amid increased scrutiny from U.S. lawmakers.

Why it matters: The report, which the platform is actively pitching to various media and posting across its channels, has the potential to tap into a key bipartisan issue — the economy, Axios' Eleanor Hawkins reports.

Catch up quick: In March, the U.S. House quickly passed legislation that could lead to a TikTok ban, and President Biden has promised to sign it if it passes the Senate.

Critics on Capitol Hill cite national security concerns and online safety as reasons to ban the app.

By the numbers: The report based on surveys says that in Michigan, 165,000 businesses and 3.7 million people — roughly a third of the population — are active TikTok users.

87% of small and midsize businesses said sales increased after promoting on TikTok and 63% said the platform helps them connect with more audiences, the survey showed.

67% of Michigan users spent money on local events or businesses after seeing content on TikTok.

It also claims Michigan businesses' use for advertising and marketing contributed $690 million to the gross domestic product.

Zoom in: Alice Nguyen, owner of 88 Banh Mi & Bowl in Warren, told CBS News Detroit using TikTok increased her income.

"At first, I thought it was for fun, I never thought I'd put my business into it. And then I really put my business into it and now it's important to my business," Nguyen said.

What they're saying: TikTok insists the report has been in the works for more than a year and its release is not timed to ongoing regulatory battles, a spokesperson said.

The big picture: Coincidence or not, TikTok has proved it can mobilize young constituents — many of whom flooded congressional phone lines ahead of last month's TikTok House vote.

The company has placed a seven-figure ad buy featuring the hashtag, #KeepTikTok.

It's also undeniably influencing where users shop and eat, and how they interact with their communities.

Between the lines: This TikTok PR playbook is similar to the one Airbnb used in 2017 to push back against regulatory scrutiny, especially at the local level.

What to watch: By promoting its economic impact and contributions, TikTok — whether intentionally or not — sets up a strong counterpoint that could appeal to legislators and voters ahead of the 2024 election cycle.

TikTok PR push touts economic impact in Michigan

TikTok is touting its economic impact in Michigan.

Illustration of three dollar signs rendered similarly to the TikTok logo

TikTok

TikTok is touting its economic impact in Michigan and elsewhere through a newly commissioned report, amid <a class="gtmContentClick" data-vars-link-text="increased scrutiny" data-vars-click-url="https://www.axios.com/2024/03/12/tiktok-ban-explain-why-china-congress" data-vars-content-id="d68aa511-a1c5-44d5-af2a-9cf1a49b2e6f" data-vars-headline="TikTok PR push touts economic impact in Michigan" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2024/03/12/tiktok-ban-explain-why-china-congress" target="_self">increased scrutiny</a> from U.S. lawmakers.Why it matters: <a class="gtmContentClick" data-vars-link-text="The report" data-vars-click-url="https://tiktokeconomicimpact.com/" data-vars-content-id="d68aa511-a1c5-44d5-af2a-9cf1a49b2e6f" data-vars-headline="TikTok PR push touts economic impact in Michigan" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://tiktokeconomicimpact.com/" target="_blank">The report</a>, which the platform is actively pitching to various media and posting across its channels, has the potential to tap into a key bipartisan issue — <a class="gtmContentClick" data-vars-link-text="the economy" data-vars-click-url="https://www.pewresearch.org/politics/2024/02/29/americans-top-policy-priority-for-2024-strengthening-the-economy/" data-vars-content-id="d68aa511-a1c5-44d5-af2a-9cf1a49b2e6f" data-vars-headline="TikTok PR push touts economic impact in Michigan" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.pewresearch.org/politics/2024/02/29/americans-top-policy-priority-for-2024-strengthening-the-economy/" target="_blank">the economy</a>, Axios&#x27; Eleanor Hawkins reports.

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AI use surges among policymakers

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A bar chart that shows which sources inform D.C. policymakersâ opinions in a 2026 survey of 2,060 respondents. News media ranks highest at 45%, followed by official government sources at 35%. Industry experts and thought leaders each reach 29%, while podcasts are lowest at 19%.

Share of D.C. policymakers who say select sources inform their opinions

Data: Penta Group; Note: Survey participants could select up to three; Chart: Eleanor Hawkins/Axios

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