The Challenges Facing OTT Messaging Apps

tyntec | Whitepaper| The Challenges Facing OTT Messaging Apps

The Challenges Facing OTT Messaging Apps

Consumer Survey 2015


Contents

2

● Introduction

● Key Findings

o One-to-One Communication

o Time Sensitive Communication

o Messaging App Adoption

o No App Loyalty

o In-app Purchases

o In-app Brand Engagement

o User Complaints

● Conclusions & Recommendations

● About tyntec

3

4

12

15

tyntec | Whitepaper| The Challenges Facing OTT Messaging Apps 3

Introduction

To gain a better understanding of the potential and challenges facing messaging apps, tyntec

conducted online consumer surveys in the US and China to answer these questions:

1. Do over-the-top messaging apps have the potential to become the dominant form of mobile interaction?

2. What barriers stand in their way as they attempt to expand into new geographies and offerings?


Key Findings


One-to-One Communication

● In both in the US and China social media came out on top as the most frequently used one-to-one communication channel among smartphone users.

● However, there were stark differences in how the two groups ranked other forms of communication.

5


Time-Sensitive Communications

6

● When users need to connect with someone immediately, voice calls came out on top both in the US (44%) and China (55%).

● The second most popular choices are SMS for the U.S. (38%) and messaging apps for China (31%).


Messaging App Adoption

● Facebook Messenger and WeChat dominate their own home turf, the US and China, respectively.

● The U.S. lags far behind China with 21% saying they don’t use a messaging app (compared to 1% in China).

7


No App Loyalty

● Chinese respondents are much more likely to use multiple messaging apps (90%) compared to their US peers (60%).

● Most users are using between two and three messaging apps regularly.

8


In-App Purchases

● More users are making in-app purchases in China (95%), compared to their peers in the US (64%).

● Beyond using just passwords, one-time passcodes sent via SMS is the most used authentication method both in the US (11%) and China (30%).

9


In-App Brand Engagement

● Brands in China engage consumers via messaging apps far greater than in the U.S., with

88% of respondents in China receiving messages/contents from brands, compared to 43%

in the US.


User Complaints

● Limited reach and lacking security are the chief complaints both in the US and China.

● In China, the biggest complaint is the lack of security (40%) , whereas the US respondents are

more frustrated about not being able to contact everyone from a single app (36%).


Conclusions & Recommendations


Conclusions

Messaging apps are exploding in adoption and satisfy a real need, but there are still a

number of hurdles to overcome:

● Situational use: Despite the recent growth among messaging apps, social media are used more frequently; and users turn to traditional telecom services (voice and SMS) for time-sensitive communications.

● Lacking interoperability: Messaging apps can’t achieve ubiquity without making it simple for users to reach anyone on their contact list.

● Security complaints: Users are worried about security. Messaging apps must implement strong authentication to protect users and in-app transactions.


Recommendations

14

“What our survey shows is that OTT messaging apps are at a critical point of inflection. The

apps must address user concerns, security and interoperability, if they want to enter the

next phase of growth,” said Thorsten Trapp, CTO of tyntec. “Especially where

regulatory/cultural barriers limit their options, finding technological solutions and

partners that can bridge the divide and deliver the universal reach and strong security is

key. By integrating SMS and phone verification intelligence, messaging apps can make

their apps used more broadly while protecting their users.” – Thorsten Trapp, CTO of

tyntec


About tyntec

tyntec is a telecom-web convergence company that connects the immediacy and

convenience of mobile telecom with the power of the Internet.

Partnering with mobile network operators around the world, tyntec enables enterprises

and Internet brands to power their applications, authentication, and mission-critical

communications with universal mobile services such as SMS, voice and phone numbers.

Founded in 2002, tyntec employs over 150 people in six offices around the globe, serving

over 500 global businesses, Internet brands, and mobile operators.


Contact

UK Offices:

tyntec Ltd.

11 Hope Street

Douglas IM1 1AQ

Isle of Man

tyntec GmbH

6 St Andrew Street

London

EC4A 3AE

Germany Offices: tyntec GmbH Hofmannstrasse 25-27 81379 Munich tyntec GmbH Semerteichstrasse 54-56 44141 Dortmund

Singapore Office:

tyntec Pte Ltd

51 Goldhill Plaza

#11-01/02

Singapore 308900

US Office:

tyntec Inc.

555 California Street

Suite 4925

San Francisco

For more information, please contact our Sales Team:

Germany: +49 89 202 451 200

US: +1 415 527 0903

UK: +44 207 436 0283

Singapore: +65 6478 3020

[email protected]

www.tyntec.com

mailto:[email protected]

http://www.tyntec.com/

The Challenges Facing OTT Messaging Apps

Mobile