A new study from Juniper Research has revealed that mobile operators will lose out to OTT business messaging providers such as Messenger, WeChat and WhatsApp to the tune of $2.5 billion next year — an increase of 20% over 2022. The report found that promotional messages will account for 30% of this revenue loss in 2023, with enterprises embracing up-selling and cross-selling capabilities through rich media marketing campaigns.
SMS to maintain dominance despite rich media messaging growth
The A2P messaging market report found that the total number of SMS business messages sent will reach 1.7 trillion in 2023 — growing from 1.6 trillion in 2022, as enterprises capitalise on the channel’s impressive open rates and unrivalled subscriber reach.
It identified that the use of SMS will remain particularly strong in the retail sector, with operator-led messaging channels in multi-factor authentication increasing in tandem with the growth of eCommerce.
Stable RCS pricing key to maintaining competition with OTT apps
Despite the popularity of third-party OTT applications, the report found that the total number of operator-led RCS (Rich Communication Services) business messages sent will also increase, from 161 billion in 2022 to 219 billion in 2023. It urges network operators to move away from the turbulent monetisation models used for SMS, as fluctuations in RCS pricing will limit enterprise adoption of operator-led rich media messaging.
The study found that volatile RCS pricing will encourage the establishment of grey routes, with lucrative business messages concealed and transmitted within cheaper interpersonal channels.
Research author Scarlett Woodford remarked: “In order to support the growth of RCS business messaging, operators must ensure that pricing remains profitable without dramatic increases. Operators must absorb the initial cost of rich media messaging, using digital advertising and sponsorships to secure a return on investment.”
The new report: “A2P Messaging: Emerging Trends, Regional Analysis & Market Forecasts 2022-2027” can be found here.
A free whitepaper: “A2P Messaging – Keeping the Conversation Flowing” can be found here.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.