• MAVAM research conducted with 1510 Brazilian mobile users.
• In Q2 2014 there were 275.5million mobile subscribers in Brazil, growing 3.5% on same period last year.
• Brazilian Mobile VAS totalled R$4.36 bn. in net sales for operators, a growth of 22%, while SMS generated R$1.09 bn.
• Mobile internet services accounted for 63% of all VAS, 31% more than in Q2 2013 - boosting total VAS revenues where traditional services sales are plateauing
• Operators should look to provide new services to enterprise market where SMS and application usage is on the rise
Acision, the global leader in mobile messaging services, today launched the results of its twelfth research report, MAVAM Brazil 2014 (Acision Monitor of Mobile Value Added Services (VAS)), which analyses the evolution and usage trends of VAS in Brazil. With application-to-person (A2P) messaging on the rise and businesses interacting in new ways with customers primarily due to the high adoption rates of smart devices this year’s report had a unique focus on "Enterprise Messaging" VAS for increasing customer engagement.
The research revealed a number of key trends within the Brazilian market that have impacted operator revenues, while highlighting areas of opportunity. Brazilian operators have seen positive growth in VAS revenues generating over R$4.36 billion (US$ 1.95 billion) in net sales, and accounting for 30% of mobile operators’ total mobile service revenue, which represents 22% growth on the same period last year.
The biggest growth in VAS revenues came from mobile internet which accounted for 63% of all VAS net sales in Q2 2014, totalling R$2.7 billion (USD1.23 billion), 31% more than in Q2 2013. This hike in mobile internet uptake is likely to be due to the fast adoption of smartphones in the region. Convergencia Research calculates smartphone penetration at 30% in Latin America today, and estimates annual growth rates of more than 60%, depending on the country. This year, 81% of those surveyed in Brazil had a smartphone, an increase of 17% since the previous edition.
While over-the-top (OTT) chat, and social IM services are now one of the most popular choices for communication via smartphones, 81% of those questioned stated they had used SMS in the last 3 months, and the same percentage said SMS was the service they used most frequently, as it is still the only service that has universal reach. However, the uptake of OTT chat, IM and social messaging services impacted SMS net sales, which were down 6% in Q2 2014 from the same period last year, generating R$1.09 billion (US$ 0.49 billion) in revenue. Today, 100% of smartphone owners used at least one instant or OTT messaging application and, on average, respondents had 3 messaging applications, including SMS, on their device.
According to Fatima Raimondi, Acision’s Senior Vice President and General Manager for Latin America,“With more and more smartphones in circulation in Brazil, and with mobile internet services more accessible, it is understandable that users migrate to broadband-based OTT messaging services, especially as they are perceived as free. This, in turn, means overall VAS revenue is increasing as more data packages are being sold as part of post-paid contracts, which grew by 33% over a year, resulting in increased usage of mobile internet services and traffic. It also demonstrates that all-types of messaging usage continues to grow, and highlights SMS as still essential, being the most frequently used service of all mobile users and still in the top three messaging platforms even amongst smartphone users.”
“Acision recognised this transition some time ago and developed a white-label OTT service for operators and enterprises, fuseMe by Acision, which is the only solution that interoperates with SMS, and ensures operators and enterprises can compete in the OTT world. fuseMe combines rich popular features such as chat, file sharing, video and VoIP, with more advanced, unique capabilities such as in-app web browsing, split screen with drag and drop functionality, alongside “Share My View” and the option to integrate WebRTC technology. We believe SMS will also play a leading role in enterprise engagement services, which is on the rise as companies establish how they can better exploit the mobile platform as a way to reach target audiences. For enterprises, messaging is no longer just an internal tool for increasing productivity, but something that their customers are pushing them to use for enhanced interaction and engagement.”
Twelfth Edition Special Focus: Enterprise Messaging
In a recent survey by YouGov* in the UK, 61% of consumers aged between the ages of 18-30 stated they wanted an OTT-style customer services messaging experience with their bank while this reflects just one country, it demonstrates how the consumer is thinking when interacting with businesses and banks. The changing dynamics of consumers and how they use their phone to connect with companies is also reflected in MAVAM Brazil. 71% used their smartphone to search for information about products and services, with 69% stating they receive and read SMS from companies, stores or brands that are sent to their Smartphone.
Additionally, while applications used to receive updates from brands or companies have a lower penetration (44%), this is still a significant number given the infancy of the app market in this area. In line with this, just 30% of respondents have used their smartphone to make purchases. However, the applications that facilitate monetary transactions are among those with the highest penetration (46%). The gap between purchases and transactional apps may be related to the level of banking apps downloaded or the availability of goods and services that can be paid for using mobile applications or websites designed to facilitate mobile purchases.
The most common types of SMS notifications were those related to medical services, such as appointment reminders or examinations (33%), followed by four other categories with penetration values of around 25%; reminders from educational institutions (26%), reminders from dentists (26%), reminders from personal service companies (25%), and health updates (24%). When it comes to other content they receive from enterprises, alerts and discounts had the highest penetration (64%), followed by commercial ads (62%) and updates such as exclusive product launches (39%). Interestingly, 8 out of every 10 respondents said that they would provide their phone number to an enterprise in order to receive relevant reminders and notifications.
Twenty-six per cent said they would not have a problem sending their personal information via SMS or OTT service to a company they trust, but respondents were more trusting when they had the option to send their information using an application designed by the company (31%). This is positive recognition by consumers that apps provide a safe route to engage with companies in, what is, a very new market.
Raimondi continued: “Looking at these responses, there is a huge opportunity to not only improve dialogue with consumers but also improve the way this is done, perhaps, by integrating existing communication channels (information searches, emails, SMS and videos) with applications. While fuseMe by Acision is an OTT tool that provides multi-channel dialogue with users, we also have our forge by Acision platform, which provides enterprises with secure enterprise-grade messaging services, as well as access to open APIs and SDKs to enables businesses to develop new solutions which can encompass a realm of rich,“touch-of-a-button” services such as click to call, video and content sharing with new two-way dialogue models all enhancing real time, digital human interaction.”
“Not only does MAVAM provide the necessary information companies from across all sectors need to make informed decisions about their approach to mobile communications, but we have launched the Acision Mobile Gameplan, an interactive framework which helps businesses build winning mobile strategies. The time to drive better engagement services is now and we are here to help,” concluded Raimondi.
MAVAM Brazil 2014 research was produced in conjunction with Convergencia Latina and QuantiNet. To view the full MAVAM Brazil 2014 report or for access to Acision’s Mobile Gameplan, please contact corporate.marketing[.]acision.com.
*YouGov, commissioned by Intelligent Environments, based on a survey of 2000 UK bank customers in February 2014
Acision (acision.com) connects the world by powering relevant, seamless mobile engagement services that interoperate across all IP platforms and enrich the user experience creating value and new communication opportunities for carriers, enterprises and consumers across the world.
Karl O’Doherty - Hotwire PR
T: +44(0)20 7608 2500 - E: acision[.]hotwirepr.com.
Eliane Carvalho - Carvalho Comunicação
T: +55(11) 999827746 - E: eliane_carvalho[.]carvalhocomunicacao.com.br.
Mariana Rodríguez Zani | Director Convergencia Research
T: +54 1143423740 / +54911150050396/ +5491164001972
Humberto Perissé |Diretor Quanti
T: +55(11) 98152-0666 - E: chperisse[.]quanti.net.br.