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of 1 26 Mobile Engagement Market Intelligence Report 2017 Roaming Consulting Company Ltd © 2017 ROCCO™ April 2017 MOBILE ENGAGEMENT MARKET INTELLIGENCE REPORT 2017 ROCCO Mobile Engagement Market Intelligence Report 2017 was created, designed and sponsored by ROCCO™ www.roamingconsulting.com THE SINGLE MOST INFLUENTIAL ENGAGEMENT ENTERPRISES CAN MAKE WITH THEIR CUSTOMERS THESE DAYS IS THROUGH MOBILE… BUT WHO AND HOW IS THIS OPTIMISED? WE ASK THE WORLDS LEADING VENDORS… EXECUTIVE SUMMARY VERSION

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Page 1: ROCCO Mobile Engagement Market Intelligence Report 2017 ...€¦ · 1 MNO: Mobile Network Operator 2 A2P SMS Messaging Vendor Performance Report 2015 and 2016. ROCCO asked MNOs to

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Roaming Consulting Company Ltd © 2017

ROCCO™ April 2017

MOBILE ENGAGEMENT MARKET INTELLIGENCE REPORT 2017

ROCCO Mobile Engagement Market Intelligence Report 2017 was created, designed and sponsored by ROCCO™

www.roamingconsulting.com 

THE SINGLE MOST INFLUENTIAL ENGAGEMENT ENTERPRISES CAN MAKE WITH THEIR CUSTOMERS THESE DAYS IS THROUGH MOBILE… BUT WHO AND HOW IS THIS OPTIMISED? WE ASK THE WORLDS LEADING VENDORS…

EXECUTIVE SUMMARY VERSION

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Mobile Engagement Market Intelligence Report 2017

Contents

Contents 2

The Authors of this Report 4

Executive Summary 5

Introduction 5

A2P and the Corporate Goldfish Memory Problem 6

What is Mobile Engagement? 9

Omni-Channel Trends 13

Predictions for the Future of Mobile Engagement 19

Strategic Analysis Version of this Report 20

Notes on our Report 21

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“On engagement, we're already seeing that mobile users are more likely to be daily active users than desktop users. They're more likely to use Facebook six or seven days of the week.” Mark Zuckerberg

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Identifying Vendors 21

The Vendors 22

Approach and Methodology 22

Eligibility for taking part in this report 23

Your Feedback is welcome 23

Our Future Reports 23

Annex A: Directory of Mobile Engagement Vendors 24

Annex B: Mobile Engagement Vendor Geographics 26

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The Authors of this Report

James Williams Jason Bryan Polina HristovaJames is Principal SMS Consultant at ROCCO and has been involved with all things SMS related for several years and has personally experienced the industry from all angles – Hub, Aggregator, Mobile Network Operator and technology provider. He has particularly deep experience in Business Development, Client Management and Business Operations Support. His experience has been gained through working hands-on across the globe with a wide variety of clients and his expertise lies in finding the hidden value in areas many companies neglect.

Jason is Senior Consultant, Analyst and C.E.O of ROCCO based between Malaga Spain and the ROCCO HQ in the UK. He has overseen the last 4 years of in-depth monthly research on Industry Analysis, Vendor Performance, Market Intelligence and Market Pricing in the Roaming and Interconnect space. Jason was the founder of ROCCO in 2012, building on 20 years experience of Roaming and Interconnect roles in Vodafone, Telefonica Groups and a number of Vendors, as well as GSMA Chairmanship roles.

Polina Hristova is a Journalist for ROCCO reporting on all the key trends and insights in the Industry. Polina is fairly new to the industry but is a telecoms techie at heart with a keen interest in all new fraud and security and a unique way of describing the business we work in.

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Executive Summary

Introduction

This report specifically studies Mobile Engagement in the field of enterprise content delivery, it is not a study (as featured in a recent GSMA report) of people’s engagement with mobile devices in general. In creating this report ROCCO has interviewed 18 Mobile Engagement Vendors providing services towards enterprise customers or MNO’s with 1

enterprise customers, in order to provide an overview of the vendors businesses, revenues, services, outlooks and the regional development of the Mobile Engagement market.

This report aims to provide guidance to telecoms companies to support them in the development of their Mobile Engagement monetisation and business opportunities. We do not judge the Mobile Engagement companies on their performance or leadership in this report we are presenting their views about the market side by side.

GSM MNOs have been contacting ROCCO for more data regarding Mobile Engagement specifically in the last 2 years. ROCCO conducted an A2P SMS Messaging Vendor Performance Research in 2015 where over 175 MNOs gave feedback on A2P SMS 2

Messaging Vendors. The A2P SMS Messaging Market Intelligence Report 2016 provided insights into 27 A2P SMS Messaging Vendors and helped us understand the services they offer. Then later in 2016 ROCCO delivered its second A2P SMS Messaging Vendor Performance Report, where we could see an even higher engagement from MNOs.

Since that time several of the leading Vendors in this field as defined by MNOs in these reports have merged or been acquired in the start of what is likely to be a long road of consolidation for the 800+ A2P SMS Vendors which are speculated to exist globally (many of them simply offering national services).

This Mobile Engagement Market Intelligence Report complements these other researches as it heavily features A2P SMS Messaging solutions. But it also asks, what’s next in this field. As you can see from our article below “A2P and the Corporate Goldfish Memory Problem” many customers of Mobile Engagement may be happy to continue down the path they have found as this engagement has been profoundly interesting but the

MNO: Mobile Network Operator1

A2P SMS Messaging Vendor Performance Report 2015 and 2016. ROCCO asked MNOs to give their feedback 2

about A2P SMS Messaging Vendors with regard to Performance and Leadership KPIs. We reported which Vendors were the highest rated, who scored the highest on KPIs such as “flexibility," “trust," “global presence” etc as well as KPIS related directly to A2P SMS such as grey routes.

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Omni-Channel Mobile Engagement approach is also emerging as most Enterprises know they need to diversify to capture the customer attention.

Currently a true directory of Mobile Engagement Vendors doesn’t exist within the industry and many of the descriptions of what Mobile Engagement is are muddied with misunderstandings, so we thought we would provide one within a report structure where anyone who is interested can find specific information and get a simple or detailed overview of each provider.

To complete this report we conducted detailed interviews (over 100 insightful questions were asked) with 18 Mobile Engagement Vendors to provide information that helps with the evaluation of the market, their short-term and long-term strategies and the key offerings and recent developments in this space. This report therefore contains an overview of their views and insights. ROCCO analyses all responses and identifies common themes as well as unique approaches.

At the end of the report, Annex A contains the Directory of the Vendors we interviewed and Annex B shows where they are located geographically, Annex C of the Strategic Analysis Version of this report contains the detailed interviews with each of those Vendors.

A2P and the Corporate Goldfish Memory Problem The gap between the corporate world and the consumers has always been a sensitive, very well-looked after space — it represents the vital connection between a company and its clients and thus, the only significant spot of influence upon the customer’s decisions. It has its own microenvironment that needs to be maintained in order for the company and its clients to co-exist.

Then misunderstandings occur and smart reactions are a must if you

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intend to keep the balance; companies generally 'intend' to make it easy for the consumer to understand things and work with their products/services; however, this fluidity is highly subjective — what appears to be simple to some could be complicated to others. This clash occurs when the companies fail to put the necessary effort into keeping their own customers and ignore the power of the invaluable feedback on their performance.

We could describe the mobile engagement strategy and all of its complications as a safe bubble with its own microenvironment — we have your number, we know your business, we try to make things easy for you, so you could trust us. The enterprise-oriented mobile engagement is also known for A2P SMS and it’s probably the only thing that’s kept the SMS system alive. Over the years we’ve grown attached to the two-step verification process that banks use — it’s quite easy and immediate when it comes to figuring out whether your information has fallen into the wrong hands.

But apart from the directly practical events — such as financial operations — the possibilities offered by the SMS/MMS platform for mobile engagement are quite limited due it’s extremely out-dated interface. People expect a much more dynamic and personalised communication with the companies that interest them and not the unappealingly flat dryness of an SMS message. Maybe this is a struggle that Rich Communication Services (RCS), Voice services, Flash Calling or Video will eventually solve, but until that solution is globalised, we are stuck with the derisively nostalgic SMS platform.

Still, mobile engagement will grow exponentially in the next few years, turning it into an indispensable marketing tool; consumers like transparency, so they would look forward to smart messages from their favourite brands but their demands and expectations have also shot up. The broiling market is composed of three kinds of services: mobile engagement services, mobile device and app management services and mobile app development services. And even though the market will expand and develop, it will not be an easy battle due to several disconcerting discoveries that bring an imbalance to this co-existence:

• 50% of consumers trust their mobile operators and brands less than they did three years ago. And who would with the amount of possibilities out there, with every new player on the block trying to pave their way through the giants which retort by panicking and misleading their clients, resulting in a massive stampede of crushed loyalty? https://www.syniverse.com/mobile-trust-expertise

• App User Retention Rate has declined internationally — 23% of users ditch an app after one use.  It has improved only in the US and has been demonstrated to be a lot more challenging in the incredibly fast developing China. How can retention be improved though? Effective push notifications offer a 56% increase on User

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Retention, so that’s a clue to find the right path. http://info.localytics.com/blog/app-user-retention-improves-in-the-us

• Views/traffic to a mobile site/app is the most popular metric of mobile success https://www.forrester.com/report/CMOs+Own+Mobile+To+Own+Your+Customers/-/E-RES120363

• Even though push notifications might improve retention rate, it is imperative that they are done well. A large percentage of users find the push notifications annoying and you don’t want to fall amidst that number with constant, compulsive reminders every single day. http://info.localytics.com/blog/the-inside-view-how-consumers-really-feel-about-push-notifications

• What is the truly annoying part of push notifications is that they are mostly impersonal — the same, ill-timed push messages are blasted to all users, damaging even loyal user engagement. http://info.localytics.com/blog/app-stickiness-makes-recovery-but-the-pressure-is-on

• Forrester Research has discovered that 44% of companies disregard their mobile services as simplified versions of their online initiatives. It’s definitely the popular impression of any service app that did not start out as an app or an online venture — the bugs and ineffectiveness have become such a common stereotype that most people don’t even bother to look up the official apps of certain companies. https://www.forrester.com/report/CMOs+Own+Mobile+To+Own+Your+Customers/-/E-RES120363

The microenvironment functions like a fish tank — if properly balanced, all of its occupants will remain happy without the desperate urge to sink to the bottom in defeat, cannibalise each other or defiantly jump out of the enclosure in search of new ventures. All of these extremes are undesirable and it is important to remember that clients have better flexibility — they can jump further and into other companies’ tanks. What you need to avoid is the ‘goldfish memory lapse’ — a splatter of gold and shine does not fix a short memory if you neglect to listen to your clients. But even science has proved that this myth is untrue and that goldfish do have extensive memories if sufficiently trained; then how come a vast majority of companies are still stuck in that myth?

Infuriatingly sloppy apps and malfunctioning services are stereotypes associated with most companies that did not initially start out as tech hubs; innovation and use of omni channel approaches is an indispensable step towards keeping the balance in your safe bubble, turning it into a better fish tank than your competitor’s and it’s also a tool to dispel bad stereotypes surrounding your company’s name by avoiding the same mistakes.

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Until then, some will remain isolated in a goldfish tank, banging their heads against the crystal clear solutions whilst others will swim along with their clients, co-existing in the same safe bubble. 

Don’t be a goldfish. Listen to your clients. Innovate.

What is Mobile Engagement? On the face of it, it seems easy enough to come up with a simple definition, but is Mobile Engagement that simple to define? And what constitutes Mobile Engagement exactly? Should we think of A2P as SMS or is A2P actually synonymous with Mobile Engagement for enterprise content delivery?

Since our A2P SMS Messaging Market Intelligence Report 2016 was published, ROCCO has carried out research, strategic consulting and training for a good number of players in the A2P SMS industry and we have most definitely seen means of engagement beyond A2P SMS appearing on a more regular basis in product offerings, particularly for those aimed at the Enterprise domain.

The Mobile Engagement Research and Interview with 18 Vendors which resulted in this Report set out to find exactly what the words ‘Mobile’ and ‘Engagement’ mean to industry players when used together. Globally speaking, if you take a look into the details of any Vendor a lot of people using the phrase appear to be referring to A2P SMS only when the reality is somewhat different. So what is Mobile Engagement and how broad is this area?

A good starting point is the definition we came across from Ross Haskell who is Senior Director, BoldChat Product, at LogMeIn:

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How Vendors described their business

2%22%

20%33%

22%

A Mobile Engagement ProviderAn SMS AggregatorAn SMS HubAn API ProviderA Mobile Network Operator

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“Mobile engagement is not advertising. While the issuance of mobile ads is a discipline in and of itself, it is distinct from the concept of mobile engagement.  Mobile engagement is about communication or the facilitation of conversations between a business and a customer either in real-time or asynchronously, through a variety of connection channels”.

We at ROCCO would however go further…

Mobile engagement encompasses communications in the ‘not for profit’ sector (Government departments, charities, local sports clubs , etc.) as well and furthermore this report shows that another area of content delivery is being overlooked, an area which many respondents see as having big potential - Internal Communications. How many companies and organisations use A2P SMS and a structured, optimised mix of alternative communication mediums to engage with their employees and other internal stakeholders? Few companies/organisations do so and ROCCO sees real potential for it in the area of Internal Communications. There is therefore a third type of A2P SMS usage beyond the traditional Marketing and Transactional.

All organisations we have dealt with recently agree that the A2P SMS market globally is expanding and will continue to do so for a number of years. There is no exact consensus as to when this phase of year-on-year cumulative annual growth will run out of steam but we can see from the responses to this research that form the basis of this Report that a good number of organisations are moving beyond their traditional domain of A2P SMS only and beyond Wholesale A2P SMS. The Enterprise domain is on people’s radars and channels beyond just A2P SMS are being added.

One factor we have seen is that a good number of companies, who until recently had been focused on Voice only, have made recent moves into A2P SMS. Margins on Wholesale Voice are wafer thin and under constant pressure. New areas of expansion are required and A2P SMS seems to fit the bill nicely, with a more Enterprise-focused solution being their ultimate aim. Enterprise changes the whole game here as there is absolutely an expectation of two-way communication which brings additional complexities with it. Entering the Wholesale A2P SMS domain is quite often their ‘Phase 1’.

Voice companies are able to leverage their quite often extensive networks of (in particular direct) Mobile Network Operator (MNO) connectivity to more easily secure A2P SMS access. The converse is of course true and we are seeing pure play A2P SMS companies realising that to make the jump from Wholesale A2P SMS to Enterprise Mobile Engagement (where it can be argued margins are higher and more stable), they have to integrate Voice connectivity and enhance their product lineup yet further. For 2 Factor Authentication (2FA), for example, Voice is quite often used as a backup to SMS. In many

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markets (the USA is a great example of this) we are seeing Voice becoming a more frequently used part of any Mobile Engagement offering. As our report shows though, Voice is definitely not without its complexities and there are definitely mixed opinions on the importance of Voice in the product mix.

On March 30th 2016 an announcement was made which got the attention of the Mobile Engagement world. Facebook and the global airline KLM formally announced the launch of a partnership that allowed KLM customers to receive flight confirmations, reminders, flight status updates, contact with customer service and even their boarding

passes, all through the Facebook Messenger app. KLM was Facebook’s first global foray into moving Messenger beyond simply a platform for friends to interact with each other, facilitating communication between businesses and customers. Facebook is by no means alone and others like Viber WhatsApp, WeChat and Telegram, amongst many others, are doing the same now. Over The Top (OTT) players have well and truly entered the Enterprise

Mobile Engagement domain. There is more to Mobile Engagement beyond A2P SMS, Voice and OTT integration though.

What is clear is that no one means of communication can successfully win the day and be expected to deliver the optimal solution in all circumstances. An intelligent mix is required or Omni-Channel approach. Avenues of two-way communication are rapidly becoming a ‘must have’ though.

There are a plethora of potential partners out there to provide Mobile Engagement players with API-driven solutions optimised for engaging with Enterprise clients. We are seeing that many in the Mobile Engagement industry see their long-term futures lying in the Enterprise domain and are thus placing such importance on it that a good number are choosing to invest on developing in-house solutions. Our report shows just how important this is for key industry players.

Whilst it is clear that the area of Mobile Engagement is indeed broad, A2P SMS will continue to play an important role for all those in the industry for some time to come. How

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long A2P SMS will retain its dominance where Enterprise communications in particular are concerned is uncertain but from the development activity across the industry, a good number of players are preparing for the future with a wide and varied product mix which they can optimise to fit any given client requirement. Flexibility is crucial and we at ROCCO look forward to continuing to work with so many organisations responsible for driving the market today.

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Omni-Channel Trends Enterprise companies know that in order to keep ahead of customer expectation they may need to change rapidly and ahead of their competition. In order to capture customer loyalty, enterprise must be disruptive and embrace Omni-channel strategies.

While A2P SMS is always seen as still gaining traction (cumulative annual growth rates are still increasing in this area and will do so for a few years to come), a more holistic approach incorporating other elements into the Mobile Engagement mix is clearly beneficial and many organisations know they need to develop in these areas or at least keep them on the back-burner until needed.

Vendors in this report talk about a number of evolving communications making up the area of Mobile Engagement. In the chart below Vendors were asked what are the top 3 trends in Mobile Engagement. 30% of Vendors believe that A2P

SMS is still the number one trend with OTT Integration following close behind. But what are each of these types of Mobile Engagement:

A2P SMS: A2P SMS are SMS Messages sent from an application (i.e., a computer, machine of some kind) to a Person. Different to Person to Person SMS (P2P) which is predominantly bilateral (both ways) means of communication. A2P SMS has until now principally been used as a unilateral (inbound) communication path for marketing and transactional content; this is however changing and there is an increasing demand for bilateral (both ways) A2P connectivity. While the majority of this report talks about A2P SMS it also investigates other forms of Enterprise content message delivery.

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The Future of Mobile Engagement is Omni-Channel

12%

5%

9%

9%

9%26%

30% A2P SMSOTT IntegrationSecure SMS (encrypted SMS)VoicePush MessagingUSSDOther

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OTT Integration: As shown above in the description of how notifications can be received into an OTT platform such as WhatsApp, Facebook Messenger , etc. Clearly OTT Integration of Enterprise content delivery is already happening.

Tyntech pointed out in this research: “They [OTT] already are, especially in APAC. Other developed markets such as North America and Europe are also experimenting with large OTTs (eg. Facebook’s open platform) and chatbot startups taking the lead”

When ROCCO asked if they should be viewed as a threat or opportunity to MNOs and their A2P SMS revenues Mobiweb advised:

“The OTT increase value [for] the A2P SMS messaging. Both channels

benefit from each-other, resulting in a rapid growth for mobile engagement. OTT make users accustomed to messaging and SMS offers a universal bridge for all subscribers, regardless of their device capabilities.”

Secure SMS (Encrypted SMS): Following WhatsApp’s announcement in 2016 about end-to-end encryption being part of its security measures, comes the question just how safe regular sms is. While protocols governing transmission of SMS are not encrypted (SMPP; SS7) and with SMS working on a 'store-&-forward' basis (thus information remains on an operator/providers system and the handset itself, indefinitely), there’s a lot of concern in the industry about this right now. The unique identifying factor is freely available, the mobile number. Meaning compromised systems would be relatively easy to query for the desired messages.

With Secure SMS therefore there is end-to-end encryption which means that messages are encrypted on the sender’s device and only the recipient can decrypt them.

Aggregators route SMS messages into and out of the MNOs SMS infrastructure (SMS-Centre), and from there only the MNO can see or have control over the message and aggregators do not have the visibility and control over the message. The MNOs SMSC

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When will OTTs become truly active in Enterprise Content Delivery

0

17,5

35

52,5

70

2016-2017 2018-2019 2020-2021 2022-2025

2016 View2017 View

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might create delays or lose messages. Therefore, aggregators cannot guarantee delivery of messages. For mission-critical corporate applications, such mobile banking, it is important to combine the flexibility of an independent service provider with SS7 access, so some Aggregators partner with some MNOs to provide the end to end solution.

Voice: As described in the previous chapter, more and more companies are getting in on the Application to Person communications using voice. Calling from an app to mobile phone numbers and landlines with PSTN termination. Normally Voice Services are built on a carrier-grade platform.

Push Messaging (Location-based becoming increasingly important): Push notifications allow different ways to interact with your customers like deep linking and enabling push actions. Push actions enable the user to perform an action without even opening the app, allowing them to engage with your brand on an ongoing basis.

For example in the Banking Industry, Push messages are those that a bank sends out to a customer's mobile phone, without the customer initiating a request for the information. Typically, a Push Message could be a mobile marketing message or an alert of an event which happens in the customer's bank account, such as a large withdrawal of funds from an ATM or a large payment involving the customer's credit card, etc. It may also be an alert that some payment is due, or that an e-statement is ready to be downloaded.

Another type of Push Message is one-time password (OTPs). OTPs are the latest tool used by financial institutions to combat cyber fraud. Instead of relying on traditional memorised passwords, OTPs are sent to a customer's mobile phone via SMS, who are required to repeat the OTP to complete transactions using online or mobile banking. The OTP is valid for a relatively short period and expires once it has been used. Bank customers can select the type of activities for which they wish to receive an alert. The selection can be done either using internet banking or by phone.

USSD: Unstructured Supplementary Service Data (USSD) USSD can be used for prepaid callback service, mobile-money services, location-based content services, menu-based information services, and as part of configuring the phone on the network. USSD messages are up to 182 alphanumeric characters long.

Unlike Short Message Service (SMS) messages, USSD messages create a real-time connection during a USSD session. The connection remains open, allowing a two-way exchange of a sequence of data. This makes USSD more responsive than services that use SMS. Some operators use USSD to provide access to real-time updates from social-networking websites like Facebook and Twitter. Wikipedia uses USSD to send articles to some feature phones.

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Messages sent over USSD are not defined by any standardization body, so each MNO can implement whatever is most suitable for its customers. USSD can be used to provide independent calling services such as a callback service (to reduce phone charges while roaming), enhance mobile marketing capabilities or interactive data services. USSD is commonly used by prepaid GSM cellular phones to query the available balance. The vendor's "check balance" application hides the details of the USSD protocol from the user.

12% of Vendors in our report indicated OTHER and this is what they were referring to: Flash Calling, A2P RCS Messaging, Video/Web RTC Calling, Wi-Fi Calling, Mobile Wallet Marketing

Flash Calling: Flash calling is another voice verification service. Flash Calling is a verification process which is much quicker than standard SMS PIN verification. Instead of sending an SMS to verify an identity the device receives a call. This provides a smooth and secure user verification service. The call arrives directly to your device main screen.

A2P RCS Messaging: Google recently announced that it will use the RCS Standard as a backbone for Android Messages. Said Amir Sarhangi, Head of RCS at Google recently

“RCS will upgrade today’s business messaging experience by enabling brands to send more useful interactive messages”.

CLX (one of the contributors to this report) MD Robert Gerstmann also advised recently in an MEF Blog:

“RCS Business Messaging will enable brands and businesses to use messages to engage with consumers as a session that is more akin to an app-like experience. RCS messages can be delivered in colour, contain images and video and offer chat and automated chat-bot like features”.

Video: One area mentioned by one company in this report and not already mentioned in the survey until this point is Video which is very interesting. With the proliferation of 4G networks and 5G around the corner, providing subscribers continue to see an increase in their data allowances, ROCCO believes that Video delivered over the mobile channel could indeed be an interesting driver of growth in the Marketing communications area in particular.

In 2013, ReelSEO released their Video Marketing Survey and Business Trends Report, which incorporated feedback from over 600 marketing respondents. They discovered the following:

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• 93% of marketers are using video in their campaigns

• 84% are using video for website marketing

• 60% are using video for email marketing

• 70% are optimising video for search engines

• 70% will increase spend on video

• 82% confirmed that video had a positive impact on their business

One oft-quoted statistic is that viewer engagement has to happen within the first 10 seconds of watching a video. The National Center for Biotechnology Information, reports that the average attention span in 2013 was 9 seconds, one-second less than the attention span of a goldfish.

Fortunately, Wistia weighed in back in 2012 with this helpful video analytics chart, which was synthesised from years of video analytics:

As you can see, the longer a video drags on, the lower its retention, which is expected. Yet videos under 1 minute enjoy 80% viewer retention up to the 30-second mark, while videos 2-3 minutes in length still enjoy 60% retention.

WebRTC Calling: (Web Real-Time Communication) is a collection of communications protocols and application programming interfaces that enable real-time communication over peer-to-peer connections. Web RTC enables applications such as video conferencing, file transfer, chat, or desktop sharing without the need of either internal or external plugins. Web RTC is being adapted for use with enterprise content delivery and we expect to report more on this in the future.

Wi-Fi Calling: As with other Voice verification services Wi-fi calling allows the user to receive notifications via calls received while on Wi-fi. Unlicensed Mobile Access or UMA, is the commercial name used by mobile carriers for external IP access into their core networks. The latest generation system is named Wi-Fi Calling by a number of handset

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manufacturers, including Apple and Samsung. In its most common form, UMA-compatible mobile phones use WiFi networks to connect calls, in place of conventional cell towers. This can be useful in locations with poor cell coverage where some other form of internet access is available, especially at the home or office. The system offers seamless handoff, so the user can move from cell to WiFi and back again with the same invisibility that the cell network offers when moving from tower to tower.

Mobile Wallet Marketing: GSMA Intelligence recently reported that: Around 4 in every 5 mobile phone owners (18+) in Kenya and Tanzania use their mobile phones to send

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or receive money from friends, relatives or business associates via mobile money services. This trend is true for consumers on both smartphones and basic/feature phones.

Mobile wallets are a great opportunity for marketers to offer a seamless way to purchase directly from their mobile device, but also to send notifications about items purchased over the mobile wallet solution.

Predictions for the Future of Mobile Engagement There was a multitude of predictions and the broad consensus here is that there will be a lot of growth in the market. Personalisation and tailoring of offerings to subscribers and individuals will continue with Push and location being a key element in this.

There will be increasing Mobile integration. Enterprises across verticals will deploy multichannel communications capabilities with a deeper view of their customer journey, and integrate mobile channels directly into their business processes and applications with greater emphasis on real-time, mobile communications and secure transactions. We will be seeing new ways of engaging which have not been thought of before. Mobile Engagement will be critical to driving loyalty at every level.

End of the Executive Summary

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Strategic Analysis Version of this Report

The Strategic Analysis Version of this Report contains the following:

•220 Pages of data related to Mobile Engagement •Interviews with 18 Vendors •Simple to view infographics which explain and contrast the opinions of Vendors

Content:

This Executive Summary + Strategic Analysis of many different aspects of A2P SMS and beyond

Vendors: The Vendors, Ownership Structure, Top Product Offerings, Their Strategy, Future Focus, Personnel, Revenues, Mobile Engagement Specific Revenues, Countries Generating the Most Revenues, Growth, Consolidation, ISO Accreditation, PCC DSS Compliancy, Association Membership

Product Offering: When they started with Mobile Engagement and A2P, Wholesale Mobile Engagement, Enterprise Mobile Engagement, Enterprise Related Solutions, Mobile Engagement Brands, OTT Approach, Mobile Engagement and Internal Communications, Voice Business, Mobile Engagement Clients, Direct MNO SMS Clients

Their Approach: Use of Aggregators, Voice Connectivity, MNO Group Approaches, SMS Hub Approaches, Routing Management, SMS Pattern Detection, SMS Traffic Monitoring, Grey Route Traffic, Global Titles, Direct Connections, Currency and Pricing Models, Large Scale Content Delivery, Content Transactions Per Month, Mobile Engagement Tenders, Key Trends in Mobile Engagement, A2P SMS Trends, What type of Content Delivery is the most successful, Mobile Engagement Trends with the most traction, VMNs, OTT Players, What MNOs need to know about Mobile Engagement, APIs,

The Future: Consolidation of Mobile Enterprise Vendors, Robotic Mobile Engagement, Predictions for A2P SMS

Annex A: Directory of Mobile Engagement VendorsAnnex B: Mobile Engagement Vendor Geographics Annex C: All Vendor Interviews, CallTrade, CLX Communications, Global Message Services (GMS), Hook Mobile, Infobip, Interactive Digital Media, LLeida.net, Locotel Ltd, Mitto AG, MobiWeb, Nexmo,

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Panacea, PCCW Global, Route Mobile Limited, SMS Highway, Syniverse, Tata Communications Ltd, Tyntec Ltd

Notes on our Report

Identifying Vendors

There is often no formal list of Vendors available to MNOs of certain Vendor types. Even Associations don’t have all Vendors as members and often don’t provide full lists for people to view. We found there are a number of sources to create a definitive list. The Vendors that were included in this survey appeared because of one of several reasons:

• They appeared in our A2P SMS Messaging Vendor Performance Report 2015, 2016

• Their SEO allowed us to easily locate them

• They are active in social media

• They were recommended to be included by MNOs

• They attend industry events regularly and are known in the Industry, because they have Exhibition stands, produce standards in Industry associations, or simply throw promotional events

• They are known Vendors to ROCCO

Even after checking all these sources, sometimes we miss a certain Vendor. There is no intention behind this. We are happy to include all Vendors however long this makes our list of Vendors that are included. However looking at the list below we believe it to be definitive.

Whenever these Research projects are created we always communicate widely and incase you want to be notified, please go to our website www.roamingconsulting.com and follow the instructions to be notified by Global Insights. We have over 34,000 contacts and work with over 120 vendors annually on reports.

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The Vendors The 18 Vendors which are part of this report are:

• CallTrade

• CLX Communications

• Global Message Services (GMS)

• Hook Mobile

• Infobip

• Interactive Digital Media

• LLeida.net

• Locotel Ltd

• Mitto AG

• MobiWeb

• Nexmo

• Panacea

• PCCW Global

• Route Mobile Limited

• SMS Highway

• Syniverse

• Tata Communications Ltd

• Tyntec Ltd Approach and Methodology From January 2017 to March 2017 we communicated widely asking Vendors to participate in interviews with ROCCO, to understand the background to the Mobile Engagement Messaging business. 18 Vendors responded to us with feedback.

Some Vendors didn’t give feedback for the following reasons:

• They advised us that even while they advertised their company as having Mobile Engagement services, they either a) did not actually have a business yet or b) had an A2P SMS Messaging business currently, but had no Mobile Engagement clients and requested us to ask them again in the future.

• Some Vendors did not respond at all following several attempts to reach them through contacts advertised or on their websites.

ROCCO prepared over 100 questions for the Vendors, asking them about their demographics, current business, their specific services, how they performed and what they expected to see in the future.

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Eligibility for taking part in this report

Only Vendors who advertised themselves as Mobile Engagement Vendors were invited by ROCCO to take part and are included in this report.

Your Feedback is welcome We would welcome your feedback on our questions, research, interpretation of the results and our presentation of the results. Please contact us at [email protected] to give your view.

We have taken a lot of feedback on this survey which we intend to use in the revision of this survey for 2018.

In 2018 we intend to repeat several questions we have created here and then understand how perceptions are changing with regard to Mobile Engagement and how the performance has evolved.

Our Future Reports Our 2017 Catalogue of Industry events and Reports is available to download from www.roamingconsulting.com. We offer several options for purchasing reports and training including discounts and subscriptions.

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Annex A: Directory of Mobile Engagement Vendors

Vendor Country Website Contact Information Year Founded

Operating in Countries

Number of Global Offices

Calltrade Switzerland www.calltrade.ch [email protected] 2001 1 1

CLX Communications

Sweden www.clxcommunications.com

E-mail: [email protected] People can contact us through a number of avenues. See https://www.clxcommunications.com/contact-us/ for further details

2008 21 32

Global Message Services AG (GMS)

Switzerland www.gms-worldwide.com [email protected] 2006 9 9

Hook Mobile USA www.hookmobile.com [email protected] 2006 1 1

Infobip UK www.infobip.com

[email protected] Companies usually reach us through our website (contact pages, live chat), email, phone, or our social media profiles. Also, we get lots of business enquiries in events we attend globally, as there almost isn’t a day in a year that our people aren’t participating in some industry event.

2006 41 52

interactive digital media GmbH

Germany www.i-digital-m.com [email protected] 2003 3 3

Lleida.net Spain www.lleida.net [email protected] 1995 16 16

Locotel Ltd UK www.locosms.co.uk [email protected] 2008 2 2

Mitto AG Switzerland www.mitto.ch [email protected] 2013 4 6

MobiWeb Hong Kong www.solutions4mobiles.com

[email protected] 1999 5 7

Nexmo, the Vonage API Platform

United States

nexmo.com, vonage.com check our websites 2011 10 4

Panacea Mobile South Africa www.panaceam

obile.com

[email protected]; [email protected]

2012 1 2

Vendor

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PCCW GLOBAL

Hong Kong SAR

www.pccwglobal.com [email protected] 1990 41 55

Route Mobile Limited India www.routemobil

e.com [email protected] 2004 8 8

SMShighway UK www.smshighway.com [email protected] 2002 5 5

Syniverse Florida www.Syniverse.com

www.syniverse.com/contacts 1987 30 30

Tata Communications

India www.tatacommunications.com

https://www.tatacommunications.com/contact-us

2008 44 44

Tyntec UK www.tyntec.com [email protected] 2002 4 6

Country Website Contact Information Year Founded

Operating in Countries

Number of Global Offices

Vendor

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Annex B: Mobile Engagement Vendor Geographics We have divided the Vendors into two regions Europe and ROW (Rest Of the World)

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