Mobilesquared: Brands will spend $18.04 billion on RCS business messaging by 2023

Rich Communication Services (RCS) will change the way brands and businesses communicate with their mobile customers and will experience exponential growth in the coming years according to analayst firm, Mobilesquared.

  • There will be 1.01 billion RCS monthly active users (MAUs) across 168 mobile operators by the end of 2019, rising to 3.23 billion MAUs across and 486 mobile operators by the end of 2023.
  • 5.7% of brands and businesses said they would launch RCS business messaging (RBM) immediately, but that figure will increase to a majority of 65.8% three years after the launch of RBM – with content sharing, branded experiences and 1-2-1 chat being the main drivers.
  • 57.5% of consumers will use RBM if the experience is at least as good as existing OTT channels such as Whatsapp, Facebook Messenger, WeChat or Line.
  • RBM is forecast at just $184.14 million in 2019. However, this number is set to increase to $18.04 billion by 2023 as more brands and businesses utilise the platform and consumer adoption increases.

Whilst there is still very little brand side understanding around RCS, various early adopters are already achieving favourable results – fast-food chain Subway reports a 50-60% lift in conversion rate as a result of using RBM for example.

Although a number of questions remain about specific pricing models, the RCS business messaging platform has almost universally proven to show an increase in consumer opt-ins, click-through rates, satisfaction, engagement and conversion for brands and businesses. This, coupled with the expected increase in messaging volumes due to the use of chat sessions which encourage a conversational flow between brand and customer, means that the entire ecosystem – from mobile operator to aggregator, brand and consumer – can benefit from RBM.

Gavin Patterson, chief data analyst, Mobilesquared