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SMS Messaging Will Generate $177 Billion

SMS will continue to maintain its lead as the highest mobile data service revenue generator across all messaging categories, providing global service revenues of $177 billion in 2013.

But in a recent market study by ABI Research, regional differences will determine the success of messaging expansion into the Web, advertising, and the incorporation of mobile messaging within social networking media.

"Innovative companies are exploring opportunities for expanding mobile messaging access to Web sites as well as targeting customers with content and ads," says principal analyst Dan Shey.

"To be successful with these enhanced services, companies that supply mobile messaging products and services must understand the regional distributions for customer type, payment preferences, message delivery method, and usage.”

For instance, developed regions of North America and Europe have the highest messaging ARPUs, and send the most messages from the computer to the mobile device using IM; Asia-Pacific subscribers sign up for the most SMS alert services; and Latin Americans are heavy SMS users, but prefer pay-as-you-go for all messaging services.

Additionally, these regional differences will cause established messaging suppliers to reevaluate their business models.

"Device vendors and messaging platform suppliers serving the global market will have to manage across markets where growth is king -- and other markets where product differentiation is king," continues Shey.

"This is a great time for smaller companies to develop new products and services individually and in partnerships to serve the niche needs of a region or country."

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