MARKET I NSIGHT

The Future of Mobile Messaging:
Content is King
By Lawrence Lundy – ICT Consultant
Frost & Sullivan | Market Insight

MOBILE MESSAGING APPS SHOW HOW MOBILE USERS CAN BE MONETIZED
With the recent $3 billion...
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Future of Mobile Messaging

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This paper will explore a few of the most important mobile messaging applications and the business models they are employing. It will argue that these applications can no longer be seen as mobile messaging applications, as they offer a far richer experience with far deeper user engagement than the SMS experience that they are replacing. These applications should be seen more as content distribution networks, and their ability to create relationships between users and content on mobile puts these applications in direct competition with Twitter and Facebook.
Part 1: The market is regionally fragmented, with WeChat dominating in China, WhatsApp in Europe and Latin America, and Facebook Messenger in the United States
Part 2: Mobile messaging is a uniquely volatile market, with growth driven in the early stages by teenagers and apps that do not lock in users
Part 3: Premium content, brand development, gaming, and in-app payments offer revenue generation possibilities
Conclusion: The companies

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Transcript of "Future of Mobile Messaging"

  1. 1. MARKET I NSIGHT The Future of Mobile Messaging: Content is King By Lawrence Lundy – ICT Consultant
  2. 2. Frost & Sullivan | Market Insight MOBILE MESSAGING APPS SHOW HOW MOBILE USERS CAN BE MONETIZED With the recent $3 billion cash acquisition offer for SnapChat by Facebook, the $11 billion market capitalisation of Twitter, and the $1 billion acquisition of Instagram by Facebook, it is clear that companies successful on mobile are valued extremely highly. Despite their high valuations, none of these companies are profitable; their value is based on number of users and user growth. There is a market for mobile that has even larger user bases, with even faster user growth, and has managed to generate significant revenues: mobile messaging applications. The numbers can be staggering; WeChat, the Chinese messaging app, has 272 million monthly average users, and WhatsApp, a California-based app, has 350 million. This can be compared to Twitter with 215 million users or SnapChat with 5 million users. Even smaller mobile messaging apps have huge installed bases, such as LINE with 280 million and KakaoTalk with more than 100 million. Unlike microblogging apps or photo-sharing apps, mobile messaging has seen success in generating considerable revenues in a variety of ways. 2 Frost.com This paper will explore a few of the most important mobile messaging applications and the business models they are employing. It will argue that these applications can no longer be seen as mobile messaging applications, as they offer a far richer experience with far deeper user engagement than the SMS experience that they are replacing. These applications should be seen more as content distribution networks, and their ability to create relationships between users and content on mobile puts these applications in direct competition with Twitter and Facebook. Part 1: The market is regionally fragmented, with WeChat dominating in China,WhatsApp in Europe and Latin America, and Facebook Messenger in the United States Part 2: Mobile messaging is a uniquely volatile market, with growth driven in the early stages by teenagers and apps that do not lock in users Part 3: Premium content, brand development, gaming, and in-app payments offer revenue generation possibilities Conclusion: The companies that expand beyond messaging and develop a content distribution platform will win in this market T: @lawrencelundy L: http://uk.linkedin.com/in/lawrencelundy E: lawrence.lundy@frost.com
  3. 3. SILICON VALLEY 331 E. Evelyn Ave. Suite 100 Mountain View, CA 94041 Tel 650.475.4500 Fax 650.475.1570 SAN ANTONIO 7550 West Interstate 10, Suite 400, San Antonio, Texas 78229-5616 Tel 210.348.1000 Fax 210.348.1003 LONDON 4 Grosvenor Gardens London SW1W 0DH Tel +44 (0)20 7343 8383 Fax +44 (0)20 7730 3343 C O NTAC T U S +44 (0) 20 7343 8383 • enquiries@frost.com • www.frost.com FROST & SULLIVAN Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth.The company’s Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs more than 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships.

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