The Role of Value-Added Services in Mobile Marketing


Everything about mobile is appealing. With the continuous growth of the mobile market, most of the communication and advertising technologies concentrate around mobile devices. Targeting specific audiences becomes even simpler with the variety of channels mobile marketing incorporates. In spring 2019, there have been 4 billion unique mobile internet users worldwide and around 50% of web pages have been viewed from mobile devices. Mobile marketing is, basically, the core of a modern online ecosystem. The growth of the mobile market contributed not only to an increase in demand for devices but also for app development. Therefore, app-based marketing appears to be one of the most lucrative marketing strategies at the present moment.

The parallel growth of mobile gaming particularly contributes to winning the market. Mobile value-added services offer a wide range of capabilities to mobile operators, advertisers, and app developers, enabling them to expand both their presence and customer reach.)

what is value added services VAS

What Does VAS Mean?

VAS, or value-added service, is usually offered by network or network’s resellers. In a nutshell, value-added services offer additional benefits to users or subscribers. Additional benefits imply any services beyond the ones considered standard. Services like online banking, voicemail or such location-based services as recommendations of social events in a city can be considered value-added services. Mobile value-added services (MVAS) are often called VAS, which does not misplace the meaning as the term itself originates in the telecommunications industry.

Obviously, there are certain features that characterize VAS. Here is a shortlist of these characteristics:

1. Customer-centric approach

2. Service duration predicated on the needs

3. Efficient timing and frequency

4. Interconnection with complementary services

5. Showcasing the expertise of the company

6. Generating a need to research and develop new services

The value-added services definition itself is based on its impact on maintaining the competitiveness of the business, simultaneously enhancing the products and services provided. In other words, the importance of VAS is significant to any service-oriented company because of its ability to improve customer satisfaction and retention rate. For instance, the U.S. mobile value-added services market share was approximately 25% of the global revenue back in 2016.

With the mobile world evolving and tech innovations taking place every so often, the entertainment and mobile payment segments show the most rapid growth in the industry. According to Reuters, the mobile value-added services market is estimated to grow to around $8340 million by 2022. Therefore, LTE services along with the app industry and mobile affiliate marketing will continue concentrating on developing their services and improving customer acquisition strategies with VAS being in the core.

VAS Trends

According to the fact that VAS represents an opportunity to increase profits, new value-added services will constantly emerge. Along with realizing the significance of VAS the companies will invest more in such trending services like online education, data generation, gaming solutions, digital wallets, etc. Needless to say, value-added services influence the amount of time customers or subscribers spend on the device. Another way to define VAS is to call it a strategic partner to the vast majority of digital companies.

Customers are constantly hungry for the content which makes it obvious that it is simply impossible for VAS to vanish or stop being relevant. Simply put, customers need connectivity and data from mobile carriers. Value-added services make it possible for customers to receive the desired content with the carriers providing an opportunity to connect to multiple media channels.

Normally, VAS provider companies and mobile carriers have mutually beneficial relationships. Value-added services providers are authorized to promote operator’s offers or service packs, which also makes it possible for affiliate marketers to play their role in the process. As for the offers like carrier billing or pin submits, VAS companies will most likely handle the mobile marketing on behalf of the carrier.

Basically, VAS companies play the role of the advertiser in mobile affiliate marketing. There can be two basic scenarios: 1) they are interested in leads, 2) they are interested in conversions. If it is about conversions, then installing apps, subscribing or buying a product should take place. If it is about the lead, then everything the company needs is the info about the potential customer.

Consequently, most of the mobile carriers package VAS as a standard offer in order to build stronger customer loyalty and generate revenue. Therefore, it is safe to say that value-added services are becoming a major differentiator in the industry, driving sales and increasing competition. Such user-friendly services are nothing new to the industry. However, the growth of VAS is impressive and customers seem to be more and more determined to choose service providers based on the list of value-added services included. Despite the fact that the mobile value-added services market showcases promising growth, trends are changing fast as does the demand. For now, VAS stays the driving force defining the direction of further development of mobile marketing.

In this article