Top 5 Reasons A2P Messaging Services are Increasing Globally
With the advancement in technology and to pace up with the ever-changing market trends, companies are embracing new techniques to make their own identity. Therefore, the rising adoption of A2P messaging in several verticals, such as BFSI, healthcare, retail & e-commerce, is contributing positively to the industry’s growth for A2P messaging.
A2P messaging enables communication with the customers, deliver time-sensitive alerts, and authenticates active users and mechanisms. The growing utilization of smartphones and increasing demand for instant messaging services are expected to drive the global A2P messaging market during the forecast period. In this blog, we will discuss what A2P messaging is all about and the factors involved in the quick rising of A2P messaging across the globe.
What is A2P Messaging?
A2P messaging (application to person), also known as enterprise or business messaging, is a type of messaging technique where messages are sent from an application operated by an enterprise to a consumer device or mobile user through an automated process for marketing or service reasons. It is considered that 98% of text messages are open and are likely to be read- offering a cost-effective way for businesses to drive customer engagement.
With A2P messaging, the consumer can be notified about new orders, service appointment reminders, product recalls, and emergency alerts. Also, two-factor authentication and promotional and sales-type messaging.
A2P messaging platform that enables customer communication, delivers time-sensitive alerts and authenticates active users and mechanisms. It is becoming a more popular method of communication for businesses to meet their marketing objectives.
The top 3 Use Cases for A2P Messaging Trends Include Are:
- High-priority alerts cover anything from package delivery notifications to real-time anti-fraud alerts, company support channels, online reservation systems, and device alerts.
- Two-factor authentication(2FA), where a one-time password (OTP) is sent to the consumer for verification or access to an account.
- A2P Marketing messages are designed as part of an omni-channel communication strategy to deliver relevant information to recipients and reflect past interactions with the brand across all channels based on their interests and preferences.
Top 5 Reasons the Demand for A2P Messaging is Rising Across the Globe
A2P (application-to-person) messaging is a new messaging service that enables companies to provide customers with valuable real-time information and services. Several factors, including increased mobile internet penetration, business cost savings, and hassle-free communication with customers, drive the adoption of A2P messaging.
Better Customer Engagement
A2P messaging platforms are becoming the de facto choice for companies to engage customers and build strong relationships, especially during these critical times when in-person contact is decreasing. Whether you want to send one-way or bi-directional communication to create a dialogue with multiple customers, A2P platforms deliver personalized messages at scale.
More Effective than Emails
Text messages are one of the most efficient ways to communicate with customers and employees. Texting is instantaneous, offers an immediate response rate higher than email, and is easily read on mobile devices.
It is a great way to get your message out there, with a 98% read rate and almost an instantaneous response time. People are more likely to read and react to these messages on the go.
Built to Scale
An A2P message platform is a scalable and reliable solution built to serve high-volume message connections. It helps in maximizing customer reach for global scalability. A2P messaging services provide the communication backbone for highly scalable businesses, as they can be customized for multiple applications and integrated with various systems.
Advance Analytics and Reporting
The advanced messaging solutions are integrated with intelligent analytics and reporting capabilities to have a real-time view of messaging campaigns. These tools empower businesses with clear, meaningful insights into their messaging campaigns, such as comparing the reports of campaigns with similar goals to figure out areas of improvement. This gives them a clear understanding of customer behaviour, allowing them to strategize their marketing campaigns accordingly.
Security
A2P messaging platforms provide comprehensive security and support for delivering messages, preventing harmful or malicious activities like sending spoofed messages, generating large volumes of traffic through automated contacts, sending malware, and spamming. The platforms support features like 2-factor authentication for login and monitor access to maintain a high level of security. Network security features like topology hiding and SSL support ensure that your network will be protected from malware attacks and exploits. The platform with SMS Firewall further helps block and monetize the SMS traffic to prevent malware attacks.
What are the Factors Driving the Global A2P Messaging Market: Latest Trends
Many industries today are highly investing in A2P messaging owing to increase competition among businesses. OTT platforms are one of the latest trends leading to the growth of the A2P messaging market. For example – the growing adoption of smartphones and mobiles and the emergence of OTT platforms such as Whatsapp, Facebook Messenger, iMessage, etc., provide the facility of sharing rich communication services, such as videos, emojis, images, sound clips, etc. that helps in driving customer engagement and market opportunities. Let’s see the most important factors impacting the global A2P Messaging market:
- Cost-effectiveness and Higher-reaching Capabilities are the key factors driving market growth. For example, as per Gartner, text messages report a 45% response rate and a 98% open rate compared to email.
- Growing Security Threats can Hamper Growth – Industries are significantly growing over the forecast period. The increasing number of privacy and security threats is likely to cause hamper market growth. One such example is grey route threats. As per the report by Mobilesquared, a loss of USD 5.67 billion was experienced in 2018.
- Easy integration of services to drive cloud-based A2P messaging.
A2P Messaging Market Report Highlights
The global A2P messaging market size was USD 44.96 billion in 2020. The unprecedented impact of Covid- 19 has witnessed a positive rise across all regions as well as service industries. The shift from traditional business to online platforms has resulted in efficient communication and customer engagement.
Based on the analysis, the market had a significant growth of 3.9% in 2020 compared to 2017-2019. The market growth is projected to grow from USD 46.81 billion in 2021 to USD 64. 24 billion in 2028 at a CAGR of 4.6 % in 2021 – 2028.
Conclusion
As more businesses enter the A2P messaging services arena, we are seeing a steady increase in demand for applications that integrate seamlessly with services. The demand for A2P messaging services is steadily increasing globally because of their versatility, high quality, and extensive reach. It has also opened new revenue streams and improved productivity through quick information delivery. With all these benefits, it’s no wonder that so many companies worldwide are now turning to A2P messaging services.
Aditi Shembekar
Aditi is a Content Lead at Panamax, Inc. She believes that “Writing is an art, a passion, love.” Applying these thoughts in her writing, she always put her strong efforts while writing on any topic. She loves writing and technology is her favorite part. Meanwhile, in her "ME" time she loves watching movies and trying new recipes.