Wonder

Research Outline

Prepared for Darren B. | Delivered August 23, 2019

Top Mobile App Companies

Goals

Determine the top 100 mobile app companies based on advertising spending. The information will be used to identify the target companies for business development.

Early Findings

TOP MOBILE APPSAs per the AnndroidPIT report, the following are the highest-earning mobile apps based on revenue only: Spotify, Line, Netflix, Tinder, HBO NOW, Pandora Radio, iQIYI, LINE Manga, Sing! Karaoke, and Hulu.

Based on publicly available marketing spending, the following are the top three mobile app companies:

SPOTIFY
 Spotify provides an online platform and app where users can access songs.
The company has a revenue of €5,259 million ($5.82 billion).
Its sales and marketing spending is €620 million ($686.25 million).


NETFLIX
 Netflix provides an online subscription service where movies and TV shows can be streamed. 
Its service can be accessed through mobile and web apps.
The company's latest revenue is $15.79 billion.
Its marketing spending is $1,808 million.

LINE.ME
 Line.me provides a communication app that includes features such as messaging, voice, and video calling.
The company has a revenue of ‎¥207,182 million
 ($1.94 billion).
Its sales and marketing expenses amounted to ¥20,311 million ($190.55 million).

ESTIMATING MARKETING SPENDING BASED ON REVENUEMarketing spend amount can also be derived from available revenue figures.
According to a 2019 updated marketing spending study, marketing spend as a portion of revenue for each business type is as follows: B2B products - 6.3%, B2B services - 6.9%; B2C product - 9.6%; and B2C services - 11.8%.
In terms of industry-specific estimated marketing spend, the following are some of the estimated percentage of revenue values: finance - 9.2%; communications or media - 9%; consumer services - 18.9%; retail or wholesale - 4.4%; and technology or software - 9.7%.