TikTok's NZ Economy Claim Sparked Controversy Amid Growing Business Adoption

TikTok's estimated contribution to New Zealand's economy has sparked controversy. According to a report commissioned by TikTok, the platform contributes around $1.2 billion to the country's GDP and supports over 9,700 local jobs. However, critics argue that this figure is inflated due to the way it was calculated.

The report found that $434 million of the estimated contribution came from Kiwis spending in businesses that use TikTok, while 23% flowed through supply chains. However, 41% was attributed to wages paid by staff of TikTok-using businesses, which would likely exist regardless of whether or not a business posts on the platform.

The actual number that stands out is 309,000 - the estimated number of New Zealand businesses using TikTok each month to promote themselves. This represents a significant shift in how Kiwi SMEs approach discovery and marketing, with many turning away from paid search and Meta ads toward the algorithm-driven content on TikTok.