Evolution of Mobile Messaging: The Next Web Conference Europe 2015

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Chris Moore is head of Nexmo's Chat App API business, where he leads global strategy and partnerships with the global messaging apps. In this presentation, Chris will discuss the future of A2P (Application-to-person) messaging, the decline of P2P (Person-to-person) messaging, and how messaging apps will soon be avenues for brands to reach customers.

Technology

The Evolution of
Mobile
Messaging
Chris Moore
VP of Chat App API
The Next Web Europe Conference 2015

globally
7.3 Billion
Phones reached
90%
Market share in
OTT providers
80,000+
B2B customers in
235 markets globally
connected to platform
1820
Telecom operators
~3 Billion
API calls handled
by platform annually
6 Billion
Unique data points
collected annually
•  Global reach & local country connectors
•  Adaptive Routing™ & direct-to-carrier
•  Real-time analytics & dashboard
•  Cloud-based RESTful API
•  Messaging & SMS support
•  Voice & data support
•  Security & identity management
$76m
run-rate
Modular Platform
115+ 99.997%
people platform uptime
Nexmo is an innovator and leader in cloud communications
2

3
There's a clear trend in the growth of A2P SMS traffic
A2P SMS Market•  Application-to-person (A2P):
•  Top uses:
•  Authentication
•  Marketing messages
•  Notifications
•  SMS provides the greatest reach
•  ~7B mobile phones
•  Supported by most handsets
Source: Transparency Market Research.

4
The largest A2P markets are APAC & North America
Regional A2P SMS Market•  The growth is driven by:
•  Mobile phone user growth
•  Services:
•  Marketing
•  Financial services
•  E-commerce
Source: Transparency Market Research.

5
P2P SMS traffic is declining as a result of chat app adoption
Daily SMS Use
•  2012: SMS began to plateau/decline from a peak of 22 billion/day
•  2013: WhatsApp exceeded SMS messaging (with a much smaller user base)
•  2015: Messaging app users are engaged. Spend 20+ minutes per day on top messaging
apps
Messaging App Engagement
Minutes per day
Source: Frank Magid Associates.

6
The global messaging app leaders
Source: Mark Beccue Consulting, The Economist.

7
…the tech giants are getting in on the action
Question is: What's Amazon and Google's next move?

8
Deeper look: how messaging apps initially began to monetize
1. Stickers, Graphics &
Wallpapers
2. In-app Games 3. Specialized features

9
Messaging apps will soon be avenues for brands to reach
customers
•  FB Messenger for
Business announced
•  8.5M companies in
China (launched 2+
years ago

But, it is quite complex for brands to integrate with chat apps
SERVICE PLATFORMS
MarketingSales
CHAT APP REACH
CustomerService
10

Nexmo’s Chat App API simplifies the complexity
SERVICE PLATFORMS
MarketingSales
CHAT APP REACH
CustomerService
Nexmo CHAT
APP API
11

12
In 5 years, our life will revolve around messaging apps
•  Messaging apps will be the central communication tool used in daily life
Daily SMS
Use
Daily SMS
UseDaily SMS
Use
Branded
Apps
IoT
Advertisements
Communications
Customer
Service
Commerce
Social
NetworkingTransportation
Personal
Butler
Content
Media

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Evolution of Mobile Messaging: The Next Web Conference Europe 2015

1. The Evolution of Mobile Messaging Chris Moore VP of Chat App API The Next Web Europe Conference 2015

2. globally 7.3 Billion Phones reached 90% Market share in OTT providers 80,000+ B2B customers in 235 markets globally connected to platform 1820 Telecom operators ~3 Billion API calls handled by platform annually 6 Billion Unique data points collected annually •  Global reach & local country connectors •  Adaptive Routing™ & direct-to-carrier •  Real-time analytics & dashboard •  Cloud-based RESTful API •  Messaging & SMS support •  Voice & data support •  Security & identity management $76m run-rate Modular Platform 115+ 99.997% people platform uptime Nexmo is an innovator and leader in cloud communications 2

3. 3 There's a clear trend in the growth of A2P SMS traffic A2P SMS Market•  Application-to-person (A2P): •  Top uses: •  Authentication •  Marketing messages •  Notifications •  SMS provides the greatest reach •  ~7B mobile phones •  Supported by most handsets Source: Transparency Market Research.

4. 4 The largest A2P markets are APAC & North America Regional A2P SMS Market•  The growth is driven by: •  Mobile phone user growth •  Services: •  Marketing •  Financial services •  E-commerce Source: Transparency Market Research.

5. 5 P2P SMS traffic is declining as a result of chat app adoption Daily SMS Use •  2012: SMS began to plateau/decline from a peak of 22 billion/day •  2013: WhatsApp exceeded SMS messaging (with a much smaller user base) •  2015: Messaging app users are engaged. Spend 20+ minutes per day on top messaging apps Messaging App Engagement Minutes per day Source: Frank Magid Associates.

6. 6 The global messaging app leaders Source: Mark Beccue Consulting, The Economist.

7. 7 …the tech giants are getting in on the action Question is: What's Amazon and Google's next move?

8. 8 Deeper look: how messaging apps initially began to monetize 1. Stickers, Graphics & Wallpapers 2. In-app Games 3. Specialized features

9. 9 Messaging apps will soon be avenues for brands to reach customers •  FB Messenger for Business announced •  8.5M companies in China (launched 2+ years ago

10. But, it is quite complex for brands to integrate with chat apps SERVICE PLATFORMS MarketingSales CHAT APP REACH CustomerService 10

11. Nexmo’s Chat App API simplifies the complexity SERVICE PLATFORMS MarketingSales CHAT APP REACH CustomerService Nexmo CHAT APP API 11

12. 12 In 5 years, our life will revolve around messaging apps •  Messaging apps will be the central communication tool used in daily life Daily SMS Use Daily SMS UseDaily SMS Use Branded Apps IoT Advertisements Communications Customer Service Commerce Social NetworkingTransportation Personal Butler Content Media

13. Thank you!

Evolution of Mobile Messaging: The Next Web Conference Europe 2015

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