Get the Message: Mobile messaging five times bigger than Hollywood
The messaging industry continues its steady growth, reaching $130 billion in 2008 and predicted to reach $224 billion by 2013, representing almost 60 percent of carrier non-voice revenues, according to research released today by Portio Research.
Some additional perspective: global movie box office revenues reached $26.7 billion in 2007, according to The Motion Picture Association of America. That means that simple SMS and other mobile messaging services represent a business almost five times larger than perhaps the most glamorous of content-based businesses. It’s also much bigger than online advertising, which in 2007 reached just $25.5 billion in revenue, according to numbers from IDC.
Portio defines the mobile messaging market as not only SMS but MMS, mobile email and mobile IM as well. That said, SMS remains the “king” of mobile messaging, thanks to its ubiquity and ability to seamlessly cross carrier networks. But other messaging is growing as well, including mobile instant messaging, which Portio predicts will grow from 111 million users this year to 867 million users by 2013, with a corresponding five-fold increase in revenue, from $2.5 billion in 2008 to $12.4 billion in 2013. MMS also continues steady, if not spectacular growth, reaching $30 billion in revenue in 2009, Portio predicts.
Portio predicts mobile messaging will continue to grow, even in the face of a down economy. Just as impressively, it is growing in the face of rival technologies, including much more widely available Internet data offerings and Web-based messaging services. Those services — almost always free to use – range from desktop-driven instant messaging to Twitter and other alternatives.
Looks like a clear and well-time warning for service providers: be careful chasing new markets when the ones you are already sitting on hold so much potential.
December 5th, 2008 at 4:13 pm
I think it is only a matter of time before carriers messaging revenue takes a nose dive and wireless just becomes a flat rate “pipe”. How much does any pay to send an non-mobile email or IM? zero.
December 5th, 2008 at 5:13 pm
John, I always thought that would happen as well, but it hasn’t so far and I don’t see people giving up the convenience and carrier-to-carrier interconnection they have today to worry about what OS they are on and what IM system they are on etc….thanks for your comment.
December 15th, 2008 at 7:10 pm
We too think mobile messaging is a growth opportunity, especially for small and medium sized businesses that serve businesses and consumers. We recently announced a mobile (SMS) application as an extension of our Lyris HQ online marketing suite. This was a natural evolution for us given that our marketing and agency customers are already sending email messages and collecting communication preferences with our tools. As long as marketers keep their user preferences/needs in mind — and more users keep buying more sophisticated mobile devices from firms like Apple, BlackBerry and Nokia — the sky’s the limit.
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