Messaging revenues to decline by $600m

Messaging traffic is forecast to double by 2019
Messaging revenues to decline by $600m, Research, Data

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The messaging market will decline from $113.5bn in 2014 to $112.9bn in 2019, a reduction of $600m, according to Juniper Research.

Overall, messaging traffic is forecast to double by 2019. This is driven by OTT (over-the-top) messaging applications, such as WhatsApp and LINE, seeing a threefold increase in message traffic - from almost 31 trillion in 2014, to 100 trillion by 2019 globally.

According to the research company, the revenue generated from each OTT message is forecast be less than 1% of that from SMS and MMS in 2019.

“OTT messaging services are facing a struggle to monetise services. Combined with users switching from SMS and MMS services, this will contribute to a contraction in the overall revenue pot. OTTs have not yet succeeded in using advertising at scale to monetise their services, due to a limited acceptance by consumers, particularly in Asian markets. In these markets, messaging services have relied upon in-app purchases such as sticker sets to generate income,” said Juniper Research in a statement.

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