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Mobile Instant Messaging Apps Outpace SMS: Informa Report

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Yesterday, we reported that smartphones sales have surpassed that of feature phones. Now, it seems instant messaging apps have overtaken traditional SMS texting. According to a latest report form research firm Informa, six of the most popular mobile chat applications, including WhatsApp, BlackBerry Messenger, Viber, Nimbuzz, Apple’s iMessage, and KakaoTalk, averaged nearly 19 billion messages sent and received worldwide each day in 2012, compared with 17.6 billion SMS texts.

The shift away from SMS is probably going to have a big impact on the amount of revenue mobile carriers are able to generate. Pamela Clark-Dickson of Informa said some operators were already “seeing a decline in their messaging revenues“.  According to another study released by research firm Ovum, social-messaging apps will cost global mobile operators $32.6 billion of lost revenue in 2013, and that figure will jump to over $86 billion in 2020.

The “unlimited” nature of many of the messaging apps seems to be driving its growth, with 32.6 messages sent per day on average, compared with just five texts. Informa estimated that by 2014, the gap between chat applications and SMS messages will widen considerably, with 21 billion text messages seen daily, vs. nearly 50 billion app-based messages.

However, SMS isn’t dying out quite yet, because chat apps are only thriving on smartphones. Clark said that there are a large number of consumers, especially in emerging and lesser developed economies, who use normal mobile phones and rely on SMS as the preferred messaging tool. The report touts that there are 3.5 billion texters worldwide compared with 586 million using messaging services. It also said that SMS revenue is expected to grow to $127 billion by 2016 from $115bn last year.

Text messaging turned 20 in December last year  but is now in decline in a number of developed countries. Developing countries are also gradually shifting to instant messaging owing to affordable high end feature phones that come along with dedicated WhatsApp and Facebook button. I am personally an avid WhatsApp user and hardly use text as a medium. I have also seen people actually shift to a smartphone to enjoy these services. And I  believe volume of instant messaging which is already immensely popular especially with the youth will only manifold in near future due to this shift. What do you think? Let us know with your comments.

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