Who’s Spending the Most on Responding to the Mobile Consumer?


Many companies have spent in the millions of dollars individually on mobile apps, “big data” tools to analyze consumer data streaming through mobile channels, consulting expertise, and technology help to build and integrate mobile apps and mobile-oriented websites. We wanted to know what companies in North America, Europe, Asia-Pacific and Latin America were spending annually on all this. So we asked respondents to estimate what they would spend this year on technologies and consulting/IT services to respond to consumers who do business with them through mobile devices.

On average, companies in the four regions will spend between 0.14% and 0.24% of revenue to be mobile consumer-ready. To get a sense of that, for a $10 billion company, that would mean from $14 million to $24 million; for a $1 billion company, that would be $1.4 million to $2.4 million.

So what were the actual numbers? In North America, the companies we surveyed said they would spend an average $16 million on responding to mobile consumers. (See Exhibit II-9.) The number was higher in Europe — $20 million – which was similar to what Asia-Pacific companies reported ($22 million). Latin American companies estimated $14 million for this year.


Exhibit II-9: Q16/Global: What Companies Will Spend in 2012 on Technologies and Services to Respond to Digital Mobile Consumers (Not Adjusted for Average Revenue/Company in Region)

Exhibit II-9: Q16/Global: What Companies Will Spend in 2012 on Technologies and Services to Respond to Digital Mobile Consumers (Not Adjusted for Average Revenue/Company in Region)


We also asked them to predict what they would spend in three years (in 2015), and the answers were similar: between $22 million and $25 million per company in the four regions.

However, because the average-sized company differed from region to region, these numbers should be normalized. That is, bigger companies should be expected to spend more on mobility than smaller companies – as they would on just about every other business expenditure. To get an apples-to-apples comparison of company spending on mobility by region, we calculated ratios of mobility spending (in dollars) per $1 billion in revenue. (See Exhibit II-10.) These numbers tell a different story:

  • In 2012, Asia-Pacific companies spent far more on responding to digital mobile consumers than did companies in the other three regions. Per $1 billion in revenue, they spent an average $2.41 million vs. $1.43 million in North America, $1.59 million in Europe and $1.63 million in Latin America.
  • For 2015, the ratio of spending per $1 billion in revenue for companies in the four regions is expected to be higher. In North America, the ratio is predicted to be 1.98 (vs. 1.43 this year); in Europe, 1.76 vs. 1.59 this year; in Asia-Pacific 2.85 vs. 2.41 in 2012; and in Latin American 2.72 – a big leap from 1.63 this year.

Exhibit II-10: Q16a/Global: What Companies Will Spend in 2012 on Technologies and Services to Respond to Digital Mobile Consumers (Adjusted for Average Revenue/Company in Region

See Exhibit II-10: Q16a/Global: What Companies Will Spend in 2012 on Technologies and Services to Respond to Digital Mobile Consumers (Adjusted for Average Revenue/Company in Region


Based on these numbers, it looks like North American and European companies will be trying to catch up in spending with their counterparts in emerging economies of Asia-Pacific and Latin America. However, companies in the latter two regions are planning to hike their spending too.

 

Findings: All Regions
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