Why A2P SMS monetization is still important in 2020
The A2P SMS market is not going anywhere soon. Supercharged by the growth of bulk SMS marketing in banking, hospitality, leisure, gambling, and advertising industries, it is set for a continued boom. This makes A2P SMS monetization is as important as it has ever been, even in 2020.
But what is A2P SMS?
A2P SMS is an application to person messaging. In this area, an SMS is sent from a web application to mobile subscribers in bulk. The A2P SMS has a defined purpose, which could be an alert, an update, a new offer, and so much more. Every cellular phone in the world can send and receive SMS. This is because SMS is a remarkably simple delivery system with basic requirements. This is why A2P is so useful for customer engagement, customer service, transaction authentications, and many types of activations.
The A2P SMS market is growing
The global A2P SMS market is expected to grow by a compound annual growth rate of over 4% for the next ten years. The growth rate may seem modest, but when you consider that by 2030, the market will be worth over USD 100 billion, it represents a major opportunity.
Key Drivers of the A2P SMS Market
The market is being driven by growth in mobile marketing and customer
engagement. Today, it is normal to receive an SMS carrying anything from breaking news, a limited-time offer, and location-based opportunities.
Marketers find that the system allows them to re-connect with customers who might have deleted or muted other apps. Unlike other forms of marketing such as email marketing, SMSs carry a functional element, such as multi-factor authentication, meaning that consumers are less likely to delete their SMS capability.
Restraints of A2P SMS Market
The SMS messaging method faces some technical shortfalls. SMS is often
considered a basic phone feature, meaning that it is often overlooked when it comes to smartphone development. Marketers are more concerned with the features of new web-based apps, which overshadows the features of SMS.
In practical terms, this means that generating short codes used in SMS campaigns is a challenge for A2P SMS market growth. Since A2P SMSs are dependent on the use of dedicated or shared short codes, campaign owners have to deal with complications linked to the set-up of short codes.
Conclusion
SMS has evolved over the years. Consumers worldwide might have migrated to instant messaging apps such as WhatsApp and WeChat, but network providers still find innovative methods to ensure usage of SMS. In the next ten years, almost 90 percent of A2P traffic will be driven by SMS. There is clearly a window of continued monetization. User traffic for A2P SMS type is scaling new heights due to the many useful real-world applications of the technology, and this is expected to continue.
About Vox Carrier
Vox Carrier optimizes, accelerates, and simplifies International Voice and messaging through innovating in technology, platforms, and processes. We serve operators, carriers, aggregators, and enterprises worldwide delivering an array of services such as A2P messaging, service monetization, and operational outsourcing. We are a 10 ranked independent Carrier Service Provider and the largest and most innovative businesses in the international Voice and messaging market trust us to deliver.