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Having long promised to enable carriers and brands to increase subscriber engagement and create new revenue streams in an increasingly media-rich communications market, Rich Communications Services (RCS) appear poised to deliver. promise and divert billions of dollars from digital banner advertising to mobile operator-led RCS campaigns in the coming years, according to the findings of a report by business messaging intelligence firm Mobilesquared.
The report, RCS: the game changer the industry has been waiting for, published in association with Out There Media, highlights the comparative potential return on investment achieved by RCS and current digital banner advertising.
The analyst estimates that for every $ 1 million invested, only 0.1% generates value for brands. Rather, the report suggests that brands’ RCS spending will be worth more than $ 52.2 billion by 2028, and mobile operators will be able to claim a significant portion of this revenue.
Furthermore, it says that if brands don’t divert the budget to more impactful digital platforms like RCS, they can spend $ 70.7 billion on digital banner advertising in 2020 and up to $ 917.2 billion by 2028.
the study observed that the mobile Operator-owned RCS provides brands with a new engagement channel that delivers a highly engaging and highly interactive digital platform directly into the hands of consumers. RCS combines messaging, the richness of an application, and the same levels of interaction that existing messaging applications like WhatsApp offer.
Forecast that there is will be 700 million RCS users by the end of 2020, a number that says it will grow to almost five billion in the next eight years, reaching 61% of all smartphone users. This, said the analyst, is twice the size of the audience that Google and Facebook can reach today and i would make RCS the largest medium in the world.
If this growth is realized, you would see that by 2022 RCS will generate $ 1.5 billion from the natural evolution of brand spending from SMS to RCS. This is said to be on a continuing growth trajectory, and by 2024, RCS revenue is projected to grow to $ 11 billion as brands also embrace the channel for P2A customer service, beginning to complement and eventually replace call center voice solutions with RCS chat. bots. Overall, RCS revenue for mobile operators is projected to reach $ 52.5 billion in 2028.
The study showed that brands are realizing the chronic waste that surrounds the average digital advertising campaign, said Kerstin Trikalitis, CEO and co-founder of Out There Media..
“Consumers are growing weary of Facebook, Google, and other digital platforms due to concerns about data privacy and inaction regarding hate speech, ad fraud and misinformation,” Trikalitis said.
“This is reflected in the low levels of brand engagement and ROI that their platforms offer to brands. The world of digital advertising is desperate to find a compelling alternative to the Facebook and Google duopoly. RCS is it: it is the alternative for brands that are no longer willing to spend millions on digital advertising and see low returns.
“As operators seek to monetize their 5G investments and compete to create new revenue streams in a context of flat ARPU and shrinking bottoms, ensuring they can benefit from this migration in digital spending could be key to their future success. “.
Mobilesquared’s chief information analyst added that Nick Lane said: “RCS is a really exciting opportunity for consumers, brands, agencies and mobile operators. Brands can no longer waste a large portion of their digital budget on ineffective channels, and mobile operators must deliver a rich messaging experience to their subscribers and remain central to the messaging landscape; otherwise, they risk missing out on this great opportunity for WhatsApp and other Challenger messaging apps. “
