10 Impeccable Reasons Why Application-to-Person (A2P) SMS Leads in Promoting Industries

December, 2016


What is Application-to-Person SMS?

Application-to-Person SMS is an advanced technology which makes use of specific application to generate short message service and transfers it to the mobile subscriber. With the tremendous increase in mobile subscriber that is expected to reach 4.6 billion by 2020 this technology is becoming synonymous with mobile promotion.

The application to person (A2P) are largely used by banking sector, Ecommerce companies, government agencies etc. to send:

  • transaction notifications

  • one time password (OTP) to customers

  • weather alerts

  • advertisements and offers

  • and other relevant information

Infoholic Research predicts that by 2022 Global A2P SMS market will touch a massive $78.61 billion. Now lets understand few important trends that pledges this technology ascendable in many aspects in customer/client acquisition or retention.

 Major trends in A2P SMS include:

 1. Customer Relationship Management:

 Mobile based messaging is providing new avenues to develop relationship with customers. It has become a major tool for massive and scalable communication with customers via SMS, as it helps in fast and easy communication method to engage with customers.

2. Inquiry and search-related services:

Customers send SMS's to obtain information pertaining to address, contact details and other information to enterprises involved in retailing, hotel and other business. Certain enterprises also do pre-booking using inquiry SMS.

3. Interactive services:

Communication activities which need server to customer activities like voting in contests and charity donations make use of interactive services using the SMS platform. It is very useful for enterprises who want to market and deal with multiple brands.

4. Pushed content services:

Enterprises use push content services to push different notification & alert, audio, video and picture message services. This service can deliver message to mobile subscriber without interrupting the customer in their current activity.

More and more companies are adopting A2P services and are designing a more sophisticated and streamlined approach to deal with customer requirements. In another forecast, Infoholic Research states that the Americas and Asia’s A2P SMS market is expected to touch $31.70 billion and $26.31 billion respectively by 2022.

Major factors effecting the growth of A2P market:

5. Increase in pricing: 

The mobile operators are engaging with solution providers to get greater control of the different routes that can be offered. As the demand for SMS services is high, the mobile operators are investing in making the service more secure to increase the revenues they derive from A2P messaging services.

6. Customized over-the-top services: 

The OTT service providers are transforming their communication channels into advanced media platforms which can cater to the social networking hubs which can offer multiple media services. They use these offerings to scale their services and customize their rate cart per customer requirements.

7. Security: 

The messaging security platform identifies spammers and automatically blocks them. They also provide protection against service gateways broadcasts and grey routes. This acts as an extra protection for mobile providers to generate more revenue from subscribers and brands.

Major factors that will determine the future of A2P market:

8. Web based platforms & services:

Web based transactions are increasing at a rapid speed. More these services exist the demand for 2-factor authentication will increase. Companies mainly banking firms need one-time password services to let their consumers verify their accounts and get confirmation regarding their transactions.

9. Direct means of communication:

Modern day enterprises are looking to reach different target groups to promote their products. SMS is the most direct and personal medium to inform about discounts, vouchers, event invitations and information.

10. Automated response system:

Companies are directly integrating their CRM systems which can automatically send SMS to different departments. They primarily use this service to inform about delivery alerts, shipment notification and appointment reminders. 

Enterprises are actively integrating SMS into their multichannel communication strategies and business processes. All major industries are adopting and enabling a wide range of mobile services like mobile banking, mobile payments, mobile health tracking and many more. SMS is being universally utilized as a reliable and accessible means to engage with customers and use mobile as a strategic tool.

If these 10 reasons aren't sufficient, and you need much more veracity and in-depth in A2P SMS market, click here to contact us immediately.