It used to be that messaging, which gained popularity as simple texting or Short Message Service (SMS), was just for teens—a way for them to interact in real-time via their own shorthand tech-speak. Enter: Multimedia Message Service (MMS), enabling wireless consumers to incorporate images and video into their messages. Suddenly, the picture changes—more options translate to more uses; more uses translate to more users; and more users translate to a surge in MMS. Now messaging is not just for teens. Adults, media organizations and B2C and B2B companies are tapping into the market potential MMS offers.
Worldwide, MMS traffic achieved a year-on-year growth rate of 489% in 2009, according to the “Mobile Messaging Futures 2010-2014” report from Portio Research. This massive MMS volume is being driven by five key factors: Consumer familiarity with text messaging, increased use of smart phones, the rise of social networking, brand interest in reaching potential customers with multimedia advertising, and resolution of interoperability issues between operator networks.
Consumer familiarity with text messaging
Nearly three quarters of adults in the United States now send and receive text messages, according to recent study results from the Pew Internet and American Life Project. The number of adults who use text messaging has increased from 65% in 2009 to 72% in 2010. The study results revealed that about 50% of adults who use text messaging send 1-10 messages per day; 25% send 11-50; and 10% send 50-200.
Meanwhile, 54% of the nation’s teenagers use text messaging. According to the study results, about half of those teens send 50 or more text messages per day, and one in three sends more than 100 messages daily. Since teenagers and adults have now embraced texting, the jump to increased use of MMS messaging (sending video, images and audio in addition to text) becomes very easy.
Increased use of smart phones
In addition to greater consumer familiarity with MMS messaging and its potential uses, increased adoption of smart phones is fueling MMS traffic. During the 2008-2009 time period, the availability of more advanced handsets provided subscribers with state-of-the-art cameras, higher mega-pixel pictures, HD video and powerful audio. These enhanced features have encouraged subscribers to utilize MMS functionality more often.
According to IDC, global smart-phone shipments are expected to jump by 55% in 2010, compared to 2009. IDC predicts that mobile phone vendors will ship nearly 270 million smartphones in 2010, compared to 173.5 million in 2009. That trend is expected to continue into 2011 with a 24.5% increase in smart-phone shipments, further driving the increase in MMS usage.
Rise of social networking
MMS-friendly handsets coupled with the rise of social media have undoubtedly spurred the use of MMS among teens. Social media sites, initially only accessible by computer via the Internet, are now accessible by mobile phone. Most smart phones have applications enabling members of social media communities to receive alerts through MMS to keep track of friends’ profiles and updates. A 2009 survey of U.S. youth by U.S. High School Student Lifestyle found that 72% of U.S. youth now send pictures from their phones to the phones of their friends.
In the United States, picture messaging volume reached nearly 23 billion messages in 2009 and is projected to total more than 42 billion messages in 2015, according to Ovum. Video messaging is following this curve, with more than 11 billion messages in 2009 and a projection of more than 21 billion messages in 2015.
Brand interest in reaching potential customers
Media companies have come to rely on MMS to deliver news, sports and entertainment updates to target audiences via Application-to-Person (A2P) mobile messaging. Likewise, B2C and B2B companies now realize the value of sending multimedia messages to existing and potential customers. For example, many companies are using MMS to issue coupons and tickets to consumers. According to the Mobile Marketing Association’s (MMA) most recent “The State of the Industry: Mobile Advertising” report, nearly 30% of agency respondents said mobile marketing has become an “indispensable” part of the media mix. As an average value, brand respondents forecasted at least a 15% increase in their mobile marketing spend in 2010, undoubtedly contributing to the increase in MMS usage.
In addition, many vertical software solution providers are writing applications designed for use with MMS. One example is mobile bank deposit applications enabling customers to use their mobile phones to take pictures of checks and then send deposit information to their banks. Other solutions include health applications that send updated health charts and records to patients, as well as public safety applications providing GPS updates to public officials to help them map the sites of emergencies.
Resolution of interoperability issues
Previously, wireless customers on one network could not send/receive messages to/from users on other operators’ networks due to lack of interoperability agreements. Now most major operators have signed agreements with other providers, opening gateways for messages to flow among networks. In addition, messaging service providers have added functionality that enables subscribers to receive picture or video messages, which are not supported by their handsets, via SMS or by visiting a pick-up site, further facilitating the growth of MMS messaging.
All of the above factors are instrumental in boosting MMS traffic on operator networks.
During the second half of 2009, 24.2 billion MMS messages were sent/received in the United States, up from 10.3 billion messages in the first half of that year, according to CTIA’s Semi-Annual Wireless Industry Survey. The total number of MMS messages sent/received in the United States in 2009 was 34.5 billion, compared to 14.9 billion in 2008, Portio Research reports.
Additionally, Portio Research predicts that MMS will become a $31.5 billion market by year-end 2010 and will remain the second most successful messaging service (behind SMS) in revenue until the end of 2014. In 2009, MMS reached nearly $27 billion worldwide, comparable to what SMS generated five years ago.
Now that the scene is set, wireless operators have much to gain by competitively positioning and promoting MMS service to their subscribers. Based on current trends and the overwhelming success of its SMS predecessor, MMS is poised to experience tremendous growth over the next few years, bringing new or increased revenue streams to operators that lead the way with creative offerings.
To realize the benefits of MMS, operators should consider deploying hosted messaging solutions, which provide immediate capacity while controlling CAPEX and OPEX. Hosted solutions also provide the reliability required by a mission-critical service such as MMS, as well as full visibility into the MMS network. With backward- and forward-compatible hosted solutions, operators have the technological flexibility they need without the costs of adding new infrastructure. By controlling up-front costs and offering competitive services, operators can take advantage of soaring MMS market and revenue potential.
As the product manager for the Interop Technologies Multimedia Message Service Center (MMSC), Wireless Application Protocol (WAP) Gateway, and Common Short Code (CSC) Gateway, Marciano defines product requirements and feature enhancements based on input from both internal and external sources. He manages product roadmaps and serves as the internal expert for ongoing product support. Marciano is responsible for orchestrating key
product launch initiatives to ensure a successful rollout by sales, marketing, and oper
ations. In addition, Marciano is a certified Scrum Master and has more than 10 years of management experience, which includes the military role of a Division Rank First Sergeant.
