Airlines to overtake energy companies in targeting mobile consumers

05 Mar 2013

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Energy, telecommunications and airline firms are taking the lead in spending to engage consumers through their mobile devices, according to the report - 'The New Digital Mobile Consumer Global Trend' - commissioned by Tata Consultancy Services (TCS).

The average expenditure within the companies surveyed in these sectors during 2012 was between $27 million and $31 million per company, according to the report.

During 2012, energy companies spent an average of $30.8 million in targeting mobile consumers, encompassing factors such as application development, customer service delivery through mobile devices, and mobile-friendly marketing campaigns.

The telecommunications industry (consumer-focused) proved to be the second biggest spender ($28.6 million) and airlines the third ($27.2 million). These three sectors have the highest proportion of total sales transactions, marketing campaigns and post sales interactions conducted with consumers, specifically through mobile devices.

A significant gap of almost $5 million in average annual expenditure separates these sectors from the next biggest spending industry - automotive. Transportation and logistics companies have made the lowest level of investment, with an average of just $4.9 million, the report said.

Shifting picture
Through 2015, however, the picture shifts. Airlines move to become the highest spending sector ($37 million per company in 2015). The telecommunications industry remains the second largest investor in these technologies and services ($35 million), whilst the consumer computer hardware and software industry will move into third place ($34 million). Energy companies fall to fourth ($31.8 million). Food and beverage manufacturers ($10 million) move below transportation and logistics ($11.4 million) at the bottom of the expenditure table.

''Today's smartphones and tablets endowed with context sensors such as camera, GPS, compass, and accelerometer are helping companies transform their connection with consumers into anytime-anywhere contextual interactions. The level of expenditure, the high commitment to developing mobile delivery channels, and the increasing volume of mobile consumer transactions reflect a high level of transformational change some industries are undergoing due to the influence of consumer mobile devices,'' said Satya Ramaswamy, vice president and global head of mobility in TCS.

''The New Digital Mobile Consumer report has shown that most industries simply cannot ignore the relevance of the digital mobile consumer. The criticality of attuning products, content and services to a mobile consumption model is now business critical. We perceive that the firms which best-adapt to this increasingly prevalent and influential audience segment are likely to reap significant dividends,'' he added

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