APAC companies lead the way in digital spending: Tata Consultancy

According to the study, APAC companies are spending $22 million on digital consumers, versus $16 million spent by North American companies, $20 million amongst European companies and $13 million in Latin America.  

The other big survey point centred on mobile interaction. The TCS study estimated that Asian companies conducted 48 per cent of their business interactions via mobile devices, versus just 28 per cent in Europe. North America brought up the rear with just 21 per cent of consumer interaction coming from mobiles.

Also, the companies that showed the most success with digital consumers said they designed on average 25 per cent of their mobile applications for tablets, while that number was 17 per cent amongst the least successful bunch. This is also an indicator of tablets becoming the next battleground for marketers. Again, Asia led the way with 28 per cent of their mobile apps for tablets, North American companies reported 17 per cent.

The 138-page study posed questions to 664 executives across the US, Canada, the UK, France, Germany, Japan, India, Brazil, Argentina and Morocco. The online survey was fielded by ResearchNow. The company also conducted in-depth interviews with seven companies across different regions. 

When it comes to which department takes the lead in determining digital strategies, in tech-savvy Asia, IT led with 49 per cent, Europe followed at 38 per cent, North America at 35 per cent and Latin America at 31 per cent. Marketing led digital strategy in just 16 per cent of Asian companies. The three other regions fared much better on that parameter.

Energy and utilities, government, computers (both hardware and software) and telecommunications emerged as the strongest m-commerce sectors in Asia, while retail, consumer products and banking trailed.

APAC is registering higher investment because two of the world’s most populated countries (China and India) are in the region, said Yean Cheong, head of digital for APAC, IPG Mediabrands. “Ultimately, such investments are fundamentally rational business decisions," she said.

Highlighting the benefits of ramping up digital spends, Cheong said, internet technologies offer what she calls a ‘lock-in’ effect, whereby it creates deeper customer relationships and higher retention. “This in itself is a return of investment.”

One company that’s already feeling the benefits of this is Lenovo. Last year it launched a campaign called the ‘Do Network’ in Russia, Indonesia and India, empowering people to use technology to improve their communities. It garnered record levels of engagement with 410 million earned impressions, 100,000 registered users and 300,000 votes cast for community projects proposed. According to executives at Lenovo, online engagement increased 150 per cent.

“Almost all consumers in the world today are digital consumers, and it is a major focus for us not just in APAC but also in Latin America and Russia,” said Howie Lau, vice-president of marketing for APAC and Latin America.