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Elon Musk's X loses advertisers' faith as they pile into TikTok

2025-05-10 00:40:48 By

Advertisers are increasingly shifting their marketing budgets towards TikTok as confidence in Elon Musk's platform, X, wanes.

A significant 77% of marketers are set to increase their advertising spend on TikTok in 2024, signalling the platform's escalating appeal to businesses, according to recent figures from Kantar.

In stark contrast, a mere 14% intend to cut their ad budgets on X, as the site struggles with a damaged reputation among the advertising community. Last year, only 6% of marketers planned to up their investment in the platform then known as Twitter.

This change in advertiser sentiment occurs as X, steered by Musk, has initiated a "war" against marketers who have pulled out from the social media site.

X recently launched an antitrust lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA), hinting at possible "criminal liability via the RICO Act," legislation originally aimed at tackling organised crime, as reported by City AM.

The legal action, which alleges that the supposed boycott has cost X billions in ad revenue, accuses GARM of leading a "systematic illegal boycott" of the platform.

Following this, the WFA has declared it will shut down GARM operations due to insufficient funds to continue the legal battle against Musk.

The World Federation of Advertisers (WFA) stated on Friday: "GARM is a small, not-for-profit initiative, and recent allegations that unfortunately misconstrue its purpose and activities have caused a distraction and significantly drained its resources and finances,".

However, Jane Ostler from Kantar questioned the nature of the situation at X. She asked whether it truly represents a boycott or merely mirrors a wider decline in marketer confidence.

"Marketers' perceptions of X are that it is neither particularly trustworthy nor innovative; two hurdles it needs to overcome to win back media spend from advertisers," she commented.

In contrast, TikTok is capitalising on the advertiser exodus. The platform recently informed City AM of a 25% revenue surge following the launch of a campaign featuring GB athletes during the Olympics, attributing this to increased advertiser spending during this period.

Blake Chandlee, president of global business solutions at TikTok, recently noted that the platform's business is "growing faster year-over-year now than we were last year."

As X faces increasing legal and reputational challenges, Elon Musk plans to livestream a conversation with former US President Donald Trump on X Spaces, promising "entertainment guaranteed". The unrestricted discussion is scheduled for 8pm ET (00:00 GMT) on Monday.

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Ashtead Technology eyes more deals after 'record' first half performance

Ashtead Technology has registered a "record" performance for the first half of the year, signalling ambitions to expand its merger and acquisition (M&A) pipeline. The company, which specialises in subsea equipment rental for the offshore energy sector, reported a significant revenue boost for the six months leading up to 30 June 2024, recording a 61% surge due to heightened product demand. In terms of profitability, its adjusted earnings before interest, tax, and amortisation (EBITA) grew by 46% to £22.6 million, an increase from £15.5 million seen in the comparable period last year. Despite these robust figures, the firms shares experienced a nearly six per cent decline as trading kicked off on Monday. Looking ahead, the London Stock Exchange-listed entity envisions mergers and acquisitions as central to its growth strategy, focusing on enhancing its offerings and international expansion, as reported by City AM. Last November, Ashtead Technology made a significant acquisition of ACE Winches for £53.5 million, a move which Peel Hunt analyst Andrew Nussey describes as "progressing well, with a strengthening pipeline". CEO Allan Pirie commented on the company's trajectory: "I am extremely pleased to deliver another record trading performance as we build on the strong momentum seen through 2023." Pirie went on to highlight the proactive approach the business is taking: "We have continued to execute on our strategy to expand the breadth and depth of our offering through both organic and inorganic investment, increasing the resilience and differentiated nature of our business model." He concluded with an optimistic outlook: "The outlook for our business remains positive given the strength of the global offshore energy market and our continued investment to support longer term growth." "The board is encouraged by the group's performance in HY24, which gives us increased confidence on our full-year 2024 outturn, and our expectations remain unchanged," he added. Ashtead Technology is targeting low double-digit organic revenue growth. Its 2024 full-year guidance remains unchanged.

Nvidia shares plummet despite record quarterly revenue of $30bn

Nvidia's stock took a downturn, declining over eight percent in after-hours trading despite surpassing its projections and announcing record revenues. The tech giant reported an all-time high second-quarter revenue of £22.7 billion, a 15 percent rise from the preceding quarter and a 122 percent increase from the same period last year. With quarterly data centre revenue hitting a peak at £19.9 billion, which is up by a remarkable 154 percent compared to the previous year, Nvidia also declared a monumental share buyback programme valued at $50 billion. Jensen Huang, CEO of Nvidia, commented on the achievement: "Nvidia achieved record revenues as global data centres are in full throttle to modernize the entire computing stack with accelerated computing and generative AI." Huang also noted the extraordinary anticipation for Nvidia's forthcoming chip, Blackwell, slated for release in the future. Nvidia previously surprised analysts in June with the presentation of a novel microchip named Rubin, expected to roll out in 2026, and the Blackwell Ultra chip scheduled for 2025, projected to contribute to revenues starting the fourth quarter, as reported by City AM. Matt Britzman, senior equity analyst at Hargreaves Lansdown, remarked on the situation stating: "Aside from simply not beating by a large enough margin, the other bit of weakness was the warning that Blackwell launch costs would weigh on fourth-quarter margins but we're splitting hairs really." Earlier in the year, Nvidia's revenue experienced a substantial boost of 262 percent, predominantly propelled by unmatched sales of their GPUs, which are essential for artificial intelligence applications. The company had forecasted earnings amounting to $28 billion for the fiscal second quarter. Analysts had predicted sales to reach $28.8bn (£21.8bn), with a forecast for the next quarter of $31.8bn (£24bn). They also anticipated operating profit to more than double to $18.7bn (£14.1bn). Ben Barringer, technology and media analyst at Quilter Cheviot, attributed the sell-off to "a lot of nervousness" among investors who have recently been used to even better figures. "Nvidia has grown to a point where there is little room for error and any sign of slowing or normalisation of growth will have an outsized effect on the share price." "This being the smallest beat in six quarters, and the fact guidance for gross margins and costs are weaker was enough to get people to hit the sell button in afterhours trading," he elaborated. Nvidia has nearly bounced back from the 25 per cent drop in its share price that happened during the stock sell-off in July, when fears of a US recession and doubts over AI-linked firms shook global markets. The company's stock price is nearing its all-time high of $135.58, having surged 170 per cent over the past year.

Maritime firm Windward sees surge in demand, narrows losses with strong revenue growth

Maritime intelligence firm Windward has reported a significant narrowing of its half-year losses, attributing the improvement to a substantial increase in demand for its services amid a resurgence in global trade. The company's EBITDA losses were reduced to $1.3m (£1m) for the six months ending on 30th June, a considerable decrease from the previous year's $3.8m (£2.9m). Windward's revenue saw an impressive 37% jump to $17.6m (£13.5m), bolstered by a 35% rise in annual contract value (ACV) to $37.2m (£29m). These figures are in line with the recently raised market expectations, and the firm expressed confidence in reaching an adjusted EBITDA break-even point in 2024, as reported by City AM. Ami Daniel, CEO and co-founder, commented: "We delivered another period of growth in line with our expectations with good momentum across all our financial metrics as we approach adjusted EBITDA breakeven run rate during the current financial year." He added, "We are expanding our global customer base as they embrace our portfolio offering to address their varied needs across global trade." In light of the OECD's projections that global trade growth will more than double this year, driven by a reduction in inflation and increased activity from the US economy, Windward's maritime intelligence platform continues to gain traction. The platform is utilised by major clients such as BP, Shell, and HSBC to ensure adherence to shipping regulations and sanctions when chartering vessels. Over the past twenty years, the shipping industry has progressively adopted advanced maritime surveillance technology, stimulating a burgeoning yet swiftly expanding sector. In 2021, Windward, based in Tel Aviv, went public on London's Aim with a market capitalisation of £126.5m, marking the first Israeli company to IPO in London in five years.

How AI is reshaping the UK's tech landscape: Insights from Shore Capital's latest report

As the artificial intelligence (AI) revolution advances, it is being leveraged to varying degrees of success across tech and digital media sectors. A recent report from Shore Capital outlines companies for which AI has evolved beyond a mere trend into a substantial contributor to their investment appeal. Released last Friday, the report spotlights organisations where Shore Capital's 'buy' recommendation is buoyed by effective AI integration. Industry highlights include educational giant Pearson and communications firms WPP and Next 15 Group. Pearson's chief executive, Omar Abbosh, acknowledged that "significant demographic shifts" combined with "rapid advances in AI" will significantly influence educational growth trajectories in the future. The publishing heavyweight is increasingly infusing AI throughout its offerings as part of its strategic shift toward a technologically focused enterprise, as reported by City AM. "Specifically, Pearson has identified scope to improve customer service, content generation, product design processes and data tools," observed the analysts at Shore Capital. Next 15 Group, a public relations firm, has been an "AI evangelist", commended in the report for leveraging AI to enhance client experiences and streamline internal operations. Global communications titan WPP has witnessed widespread adoption of its bespoke WPP Open AI platform, alongside forging strategic alliances with AI leaders such as Bria, Google, and OpenAI. The company's latest brainchild, Performance Brain, was showcased at Google Cloud Next, designed to forecast the most effective content before campaign launches commence. Shore Capital has also spotlighted sustained AI investment by property portal Rightmove and Moneysupermarket.com's parent company, Mony Group. Both entities are harnessing AI to refine user experiences and bolster customer loyalty sectors where analysts perceive "potential upside". In the realm of software and IT services, Tpximpact is dedicating efforts to ensure AI systems are ethically and safely managed, especially for its clientele in the public sector. SysGroup, having recently relocated to Manchester, has partnered with IT infrastructure specialist Softcat to enhance its machine learning capabilities, responding to the burgeoning demand for AI applications. Softcat, endorsed as a 'buy' by Shore Capital, is ramping up its workforce to capitalise on the robust growth within the UK IT market and the escalating demand for AI solutions. Other software firms receiving a 'buy' nod from Shore Capital encompass Sage Group, Eagle Eye, Ebiquity, and RWS Holdings. Analysts have cited a policy document by Sir Tony Blair indicating that AI could deliver £200bn in savings to the government over a five-year span, potentially benefiting digital transformation experts like Tpximpact, Made Tech, and Kainos. Made Tech's shares experienced a significant surge of over 35 per cent in April following the firm's securing of a government contract worth nearly £20m. London-listed NHS software provider Kainos has reported an increase in both revenue and pre-tax profit for the full year 2024, despite a slight dip in bookings. The company is poised to benefit from increased NHS spending, with over 30 percent of its projects already incorporating AI.

West Wales cottage-based AI coaching firm for competitive gamers acquired in a multi-million-pound deal

A West Wales start-up firm pioneering AI coaching solutions for competitive gamers has been acquired in a multi-million-pound deal by global gaming and electronic sports (esports ) brand GiantX. As part of the deal founder of iTero Gaming Jack Joseph Williams, who established his business from his cottage home in Cardigan two years ago, becomes Giantx’s new head of gaming technology. The acquisition, the exact value of which has not been disclosed represents a significant milestone for the gaming and technology industry, highlighting the growing integration of AI in esports. Mr Williams, 30, who grew up in Carmarthen, is a former financial analyst at HSBC who channelled his passion for AI into developing predictive models for esports competition outcomes in his spare time from his small cottage. This interest evolved into iTero Gaming which offers decision-making tools for League of Legends player. Its League of Legends coaching app has amassed nearly a quarter million installs in less than two years, harnessing AI to pinpoint player weaknesses and optimise pre-game set-up. Read More: L ove Island digital game business set up by Welshman Wil Stephens acquired in £21m deal Read More:Latest equity deals in Wales By analysing millions of past games, the app suggests the best characters to play and other additional features to gain a competitive edge. During games, iTero also offers real-time tools, helping players secure victory against the enemy team. To support the growth of his company Mr Williams joined Cardiff-based start-up accelerator Tramshed Tech. On his company’s acquisition, a deal that makes him a millionaire, he said: “I’m excited to be joining the GiantX team. Excel Esports was the first esports team I became a fan of and I’ve followed their journey over the last few years. I believe and have always believed that data and AI have the potential to seriously disrupt the status quo of esports, whether that’s finding undervalued players or identifying strategies outside of the standard meta. I think esports is ready for the future and I’m really looking forward to what comes next working alongside GiantX.” GiantX was formed from the merger of London-based Excel Esports and Malaga-based Giants Esports last year. Its co-chief executive Tim Reichert said: “We are thrilled to announce our acquisition of iTero Gaming to help elevate player performance to new heights, This marks a pivotal moment in GiantX’s ongoing commitment to innovation and excellence in esports, empowering players worldwide to achieve their competitive best. We are excited to harness this new technology to optimise our team’s training during practice to unlock the full potential of our pro players and the global gaming community.”

Haydale in Jersey trial for its underfloor heater technology

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Vodafone wants to give SMEs 'unbeatable' deal on Samsung's newest phones

Samsung's newest foldable phones, the Galaxy Z Fold 6 and the Galaxy Z Flip 6, are now on the market and could revolutionise productivity for small to medium-sized businesses in Vodafone's latest deal. According to Samsung, the Z Fold6 and Z Flip6 are sturdy devices designed to enhance productivity and durability, making them perfect for any business situation. The compact design of the Z Flip6 is ideal for those with limited space, while the Z Fold6, with its 7.6-inch main display, offers plenty of workspace for multitasking, viewing presentations, and conducting video calls. New for 2024, Samsung's Galaxy AI can assist in saving time at work, including the introduction of Live Translate. This feature enables two-way, real-time voice and text translations during phone calls, simplifying tasks such as booking reservations or communicating with international clients. Depending on your model these functions may differ. Check out the great deals on the Samsung Galaxy Z Fold6 on Vodafone Business Or go compact with the Galaxy z Flip6 and boost your productivity for your business Galaxy AI includes an Interpreter feature that can instantly translate live conversations via a user-friendly split-screen view. This allows individuals standing opposite each other to read a text translation of what the other person is saying and since the launch this is available in 16 different languages. For those who are habitual note-takers, Note Assist offers AI-generated summaries, pre-formatted templates and cover pages to boost daily productivity. This feature can be applied to emails, presentations and more. In a rush? The Galaxy's AI-driven Browsing Assist can help you stay informed by providing concise summaries of news articles or web pages. Furthermore, these features come at no extra cost with the Galaxy Z Fold6 and Z Flip6 models, meaning there's no need to spend additional money when you purchase these devices, saving both your time and finances. Both the Z Fold6 and Z Flip6 come equipped with a 50MP professional camera, making them perfect for both work and leisure. Whether it's capturing a sunrise during your commute or taking a photo for your next marketing campaign, these devices have got you covered. When you're on the move, don't worry about the durability of the Z Flip 6 and Z Fold 6. The Z Fold6 features a sturdy aluminium frame and Gorilla Glass Victus, along with IPX8 water resistance and dust resistance. To get to its IP48 rating the model was submerged in 1.5meters of freshwater for up to 30 minutes, but we still wouldn't recommend using it by the pool or beach. On the other hand, the Z Flip6 boasts an enhanced hinge mechanism, IP48 water resistance, and dust resistance, ensuring longevity even in tough conditions. A top-tier phone needs a strong signal and a dependable carrier. Vodafone Business checks all those boxes and more, having been named the Best Network for Business at the Mobile News Awards 2024. Vodafone's offerings come with a 3-year Battery Refresh and Lifetime Warranty, ensuring durability and value for money. The telecom giant is also committed to supporting small businesses, providing free expert advice, tech support, and an array of tools and training, having already aided over a million small enterprises. You can read more in our Samsung Galaxy Z Flip6 review for the Daily Express, where we gave it four stars out of five as, while we named it "Samsung’s best foldable yet," we didn't feel that it did much to revolutionise the foldable phone market. Our tech experts also put the Galaxy Z Fold 6 through its paces, and while it did have many positive points, they ultimately felt it was too expensive.

Plymouth Science Park chief executive steps down

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Pavel Durov's arrest raises questions about the accountability of social media giants

Pavel Durov, the founder of messaging app Telegram, may feel a sense of vulnerability akin to his series of shirtless pictures on Instagram recently, now that he's under the intense gaze of international regulators. He's been formally accused by French authorities of permitting illegal activities to proliferate on Telegram. For the time being, Durov has avoided imprisonment, having been released on €5m (£4.2m) bail. The Russian-born tycoon, who also has French citizenship, found himself arrested last weekend following charges that Telegram serves as a breeding ground for nefarious online behavior ranging from child sexual exploitation to drug trafficking and financial scams, as reported by City AM. This scenario showcases the uncommon occurrence where a tech executive is held directly accountable for user conduct on their platform. Despite facing mounting pressure, Telegram maintains its compliance with European legislation, asserting, "It is absurd to claim that a platform, or its owner, are responsible for abuse of that platform." Although Durov has consistently championed freedom of expression and a policy of limited moderation on his app, detractors insist that such a laissez-faire stance has transformed Telegram into a sanctuary for terrorists, narcotics peddlers, arms dealers, and radical extremists. Moreover, Telegram's relatively modest team of about 50 employees stands in stark contrast to the workforce of competitors such as Facebook and Instagram proprietor Meta, which hires tens of thousands for monitoring content, sparking debate over the regulation of social media platforms. The lawsuit against Durov arrives amidst growing scrutiny over social media firms and their content moderation responsibilities. Recently, Telegram was used to spread messages that incited riots lasting nearly a week in Southport, UK, after tragic stabbings occurred. The platform responded by closing the channels involved, one of which had more than 13,000 members. Violence-inciting posts also appeared on Facebook and X, while the UN-backed Tech Against Terrorism pinpointed a TikTok account posting solely provocative content about Southport, attracting over 57,000 views in just hours. Following the unrest, there have been louder calls for tougher regulations and enhanced powers to censor online content. London Mayor Sadiq Khan has urged a reassessment of the Online Safety Act 2023, which has faced criticism for not fully achieving its objectives, especially concerning misinformation. Legal expert Mark Jones, a Partner at Payne Hicks Beach, commented that the bill could have been a turning point but ultimately "provides no additional support to the pre-existing criminal law covering incidents of incitement of violence." Conversely, the legal action taken against Durov has raised concerns within certain circles about a potential "chilling effect," where the fear of legal consequences might drive social media leaders to excessively moderate or censor content. Mark Zuckerberg, the head of Meta, has recently admitted to censoring content on the company's social media platforms during the Covid-19 pandemic. He disclosed that his firm succumbed to pressure from the US government to suppress anti-vaccination posts and other materials, including memes. Not one to shy away from the topic of free speech, X owner Elon Musk, who has previously stated that "moderation is a propaganda word for censorship," has joined the debate. Following Durov's arrest, Musk humorously tweeted: "POV: It's 2030 in Europe, and you're being executed for liking a meme." "POV: It's 2030 in Europe and you're being executed for liking a meme https://t.co/OkZ6YS3u2P - Elon Musk (@elonmusk) August 24, 2024". Could this be the precursor to a more extensive crackdown? With the European Commission's ongoing probe into X for purported non-compliance with disinformation rules, coupled with demands for more stringent legislation in the UK post-riots, it seems the regulatory environment for social media could be set to tighten. Public opinion may already be tipping the scales, as there appears to be a consensus on holding social media firms to account. A YouGov survey indicates that two-thirds of Britons feel these companies should be liable for posts that incite criminal activity, and 70 per cent believe the current regulations on these platforms are not robust enough.

Pennant International makes duo of senior appointments

AIM-listed technology training firm Pennant International has bolstered its leadership team with a duo of appointments. Klaas van der Leest, the chief executive of cyber security business Intercede, has joined Pennant as a non-executive director with immediate effect. Darren Wiggins has been appointed as interim chief finance officer on an eight-month fixed-term contract (a non-board position). He will start at the firm, which is headquartered in Cheltenham but also has UK offices in Manchester, Fareham and Leighton Buzzard, on September 16. Mr van der Leest has been at the helm of Intercede, an AIM-quoted business, since 2018. Before that he was managing director of Intelecom UK, an independent private equity-backed communications SaaS business. He has also held senior executive positions for UK technology businesses with a focus on product development and sales strategies. Mr Wiggins is a chartered accountant and has previously held senior finance and operational roles within aerospace and defence firm Meggitt and manufacturer Melrose - the parent company of GKN Aerospace. Mr Wiggins will be providing support to the board as the group heads towards year-end and into 2025, Pennant said. Ian Dighé, Pennant chair, said: "We are delighted to welcome Klaas to the board as a non-executive director. His considerable public market experience together with his track record of supporting growing technology-led businesses will undoubtedly be an invaluable asset to Pennant as it evolves its proprietary integrated software suite."