J’son & Partners Consulting’s opinion: Bulk SMS is becoming one of the most available instrument to inform large audience and advertising in terms of high penetration of cellular communication in Russia, constant growth of the number of mobile devices, development of payment services. New research conducted by J’son & Partners Consulting is devoted to the development of the Russian Bulk SMS (Mass Messaging) market.
Key Questions of the Research
Market structure, participants and its pricing policy, market borders have been measured and identified its perspectives.
More attention was paid to the influence of the current Russian legislation on the market participants and market structure.
Practical Value of the Research is to create an informational surrounding:
• For Russian cellular communication operators in order to optimize the tariff policy;
• For key market customers: banks, visa centers, touristic agencies in order to develop this informational and advertising channel;
• For advertising agencies, providers of bulk SMS services and other market participants in order to actualize its development strategies and optimization of pricing policy and offer of bulk SMS services.
The research is aimed at Russian cellular communication operators, advertising agencies, bulk SMS providers, banks, retail spots of consumer goods and services, airports, visa centers, insurance companies, venture and investment funds, profile start-ups, research agencies and other companies, which participate or potentially interested parties in the bulk SMS market.
Bulk SMS market is experiencing changes due to the new pricing policy of cellular operators and accepted amendments to the Law about Communication, which regulate illegal Bulk SMS (Mass messaging). J’son & Partners Consulting analyzed current market situation and changes in market structure.
Bulk SMS (Mass Messaging), a process of sending short marketing or advertising messages to the mobile subscribers is an important part of banking business and mobile marketing mediamix. SMS is part of cellular communication standards and provides the company – market participant – the most expanded audience coverage in terms of high cellular communication penetration.
The most significant segments in the Bulk SMS structure are banking SMS and Bulk SMS by retail trade companies, which also include the segment of advertising messages.
The Federal Law dated 21st July, 2014 #№272-FL About Amendments to the Federal Law about Communication took into force on 21st October 2014, it is aimed to restrict illegal bulk SMS. This law was accepted due to the increasing number of subscribers’ claims and other bulk SMS market participants about the enormous number of SMS spam. These legislative regulations had a serious influence on the distribution scheme of bulk SMS, market players and market dynamics.
Until the end of 2013, there were three categories of market participants: operators, official aggregators, “shadow” and “black” aggregating agencies, since 2014 there are cellular communication operators, which communicate only with specialized agencies or work directly with bulk SMS customers.
By J’son & Partners Consulting’ opinion, the accepted legislative measures, and as a result, new scheme of bulk SMS distribution lead to the improvement of bulk SMS market, increased its clearness, reduced enormous number of intermediaries in the distribution chain and expanded the business of specialized agencies.
The cost of 1 SMS depends on the number of messages in the massive messaging of the company per month: the more SMS the lower is the price per 1 SMS. The range of prices is wide and varies from 26 kopecks till 2.45 RUB without additional options, for example, targeting of the target audience.
Results of the J’son & Partners Consulting’s research showed that the cost per 1 bulk SMS under the basic tariff plan among Russian communication operators is lower than the cost per 1 SMS by specialized agencies, starting the packages of 5 001 SMS and further. Operators and specialized agencies offer options for targeting of their clients; cost per 1 SMS with the targeting of target audience, as a rule, per 50 kopecks – 4 RUB is higher than the cost per 1 SMS by basic tariff.
In the future, bulk SMS market will have a positive dynamics, but the legislative changes, the increasing popularity of services-substitutes influence the growth of the market and also its structure.
Detailed Results of the Research are Presented in the Full Version of the Report "Russian Bulk SMS Market"
Example of Report’s Content
Sources and Methodology
Key Definitions and Terms
1. The Overview of the Russian Bulk SMS Market
1.1. Market Volume and Dynamics, 2010–2014
1.2. Market Development, Forecasts, 2015–2020
1.3. Market Structure, Participants
1.3.1. General Market Structure
1.3.2. Operators and Specialized Companies
1.3.3. The Analysis of the Average Cost per Bulk SMS Service by Main Market Players
1.3.4. “Shadow” and “Black” Segments of Bulk SMS and SMS Spam
1.3.5. “Shadow” SMS Aggregators and Gates
1.3.6. Illegal SMS Aggregators, SMS Spam
1.4. Pricing on Bulk SMS Market
1.5. Main Models, Customers, Cases
1.5.1. Banks/Payment Systems
1.5.2. Retail / Loyalty Programs
1.5.4. Insurance Companies
1.5.6. Advertising Agencies
1.6. Peculiarity of Legislative Regulation
1.6.1. Global Practice
1.6.2. Russian Practice
1.7. Bulk SMS Market Drivers and Deterrents
Key Conclusions of the Report
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.