The Evolution of Mobile Messaging

Chris Moore VP of Chat App API The Next Web Europe Conference 2015

globally

7.3 Billion Phones reached

90% Market share in OTT providers

80,000+ B2B customers in 235 markets globally

connected to platform

1820 Telecom operators

~3 Billion API calls handled by platform annually

6 Billion Unique data points collected annually

•  Global reach & local country connectors •  Adaptive Routing™ & direct-to-carrier •  Real-time analytics & dashboard •  Cloud-based RESTful API •  Messaging & SMS support •  Voice & data support •  Security & identity management

$76m run-rate

Modular Platform

115+ 99.997% people platform uptime

Nexmo is an innovator and leader in cloud communications

2

3

There's a clear trend in the growth of A2P SMS traffic

A2P SMS Market •  Application-to-person (A2P):

•  Top uses:

•  Authentication

•  Marketing messages

•  Notifications

•  SMS provides the greatest reach

•  ~7B mobile phones

•  Supported by most handsets

Source: Transparency Market Research.

4

The largest A2P markets are APAC & North America

Regional A2P SMS Market •  The growth is driven by:

•  Mobile phone user growth

•  Services:

•  Marketing

•  Financial services

•  E-commerce

Source: Transparency Market Research.

5

P2P SMS traffic is declining as a result of chat app adoption

Daily SMS Use

•  2012: SMS began to plateau/decline from a peak of 22 billion/day

•  2013: WhatsApp exceeded SMS messaging (with a much smaller user base)

•  2015: Messaging app users are engaged. Spend 20+ minutes per day on top messaging apps

Messaging App Engagement Minutes per day

Source: Frank Magid Associates.

6

The global messaging app leaders

Source: Mark Beccue Consulting, The Economist.

7

…the tech giants are getting in on the action

Question is: What's Amazon and Google's next move?

8

Deeper look: how messaging apps initially began to monetize

1. Stickers, Graphics & Wallpapers

2. In-app Games 3. Specialized features

9

Messaging apps will soon be avenues for brands to reach customers

•  FB Messenger for Business announced

•  8.5M companies in China (launched 2+ years ago

But, it is quite complex for brands to integrate with chat apps

SERVICE PLATFORMS

Mar

ketin

g S

ales

CHAT APP REACH

Cus

tom

er S

ervi

ce

10

Nexmo’s Chat App API simplifies the complexity

SERVICE PLATFORMS

Mar

ketin

g S

ales

CHAT APP REACH

Cus

tom

er S

ervi

ce

Nexmo CHAT APP API

11

12

In 5 years, our life will revolve around messaging apps •  Messaging apps will be the central communication tool used in daily life

Daily SMS Use

Daily SMS Use Daily SMS

Use Branded

Apps

IoT Advertisements

Communications

Customer Service

Commerce

Social Networking Transportation

Personal Butler

Content

Media

Thank you!