What’s the Internet good for if not to connect people? Perhaps that’s why messaging apps are some of the most globally-popular apps around. And perhaps that’s why they’re on track to be huge revenue streams. But how are these apps finding popularity and how can they end up being such major revenue opportunities?
Three of the top ten iOS global app downloads are messaging apps. And two out of those three are owned by Facebook. Facebook Messenger and WhatsApp Messenger are the number two and number six most downloaded apps of the iOS App Store respectively. The third is Skype, owned by Microsoft. Facebook Messenger and WhatsApp Messenger are extremely popular in the US, Latin America, and Europe, but WeChat, LINE, and KakaoTalk dominate the Asian markets. However, Skype and messaging app Viber are the most profitable because they have a credit system people have to use for access to certain app features. Facebook Messenger has no direct revenue model and WhatsApp Messenger only charges users $0.99 per year. So where will the money come from moving forward?
What’s interesting about these popular messaging apps is that they’re now starting to introduce services that go beyond the simple communication feature-set. WeChat, LINE, and KakaoTalk let users send messages, make video calls, send multimedia messages, and even let users play games, connect other apps, or hail a taxi. This elevates these apps above simple messaging apps. They become a central platform for the way users interact with their phones. Revenue is coming in through the ability for users to purchase digital stickers and through in-game purchases. Providing the taxi and other services like buying movie tickets is also creating revenue for the messaging apps. These apps are also experimenting with ways to bring in advertising to the environment without hindering the user experience.
The key to the future of these messaging apps is that people are going to be spending more and more time within them. The more features that are available and the more time a user stays inside the app environment, the more opportunities for generating revenue. Keep an eye on the way that these messaging apps are creating their own mobile platforms because it will play a big part in the upcoming app generation.
Read the full article here: Messaging Apps: Where They’re Popular and Major Revenue Opportunities