Marco Veremis, CEO of Upstream, explains why app developers and mobile service providers should look to emerging markets for growth opportunities.
Mobile technology has dominated conversations for years, driven by the smartphone revolution and continuous innovation in apps and mobile payments. Yet in some mature markets in the West, growth and monetisation are beginning to slow as consumers approach saturation. Research conducted last year showed that two-thirds of consumers in the UK and US felt overwhelmed by digital marketing, and mobile marketing activity has surged in these regions.
With giants like Apple and Google focused on sustaining growth and finding their “next billion” users, companies are increasingly exploring other paths to expansion. One straightforward and compelling option is to turn attention to emerging markets—regions where mobile adoption is still accelerating and new customer relationships are forming.
Wikipedia’s recent initiative to reach a billion mobile users highlights this opportunity. By partnering with mobile operators to offer free mobile access, Wikipedia has reached billions of monthly mobile page views and demonstrated how operator partnerships can unlock large new audiences in developing regions.
What makes operator partnerships especially attractive in emerging markets is the direct relationship operators have with consumers and the unique billing options they offer. Many people in these regions own mobile phones but lack access to traditional banking and credit cards. Forecasts have estimated that over a billion mobile users in emerging markets would not have conventional banking services. For these consumers, paying through prepaid mobile credit or carrier billing is a trusted, practical method that doesn’t require bank details or credit cards.
The western model—where smartphones come pre-loaded with apps and customers transact primarily with credit cards—is often not viable in these markets. Instead, brands and operators have an untapped opportunity to offer services that consumers can purchase via their mobile bills or prepaid balances. This payment flexibility opens doors for new apps, content and digital services tailored to local needs.
Feature phones continue to be widely used in many regions, while smartphone adoption is rising rapidly. As people rely more on their phones for email, internet access and social networking, the combination of accessible billing and relevant services creates fertile ground for innovation. Applications that may succeed in these markets range from the familiar—gaming and music—to more locally relevant offerings such as healthcare, education and utility services.
Handset manufacturers are already responding: companies like HTC, Apple and Intel have introduced devices designed for emerging markets. As affordable devices spread, over-the-top (OTT) services—instant messaging, streaming and app stores—will follow. Major global brands may launch their own OTT platforms, and operators themselves can capitalize on this shift by creating localized versions of music or app stores leveraging their existing customer relationships.
Operators that build and distribute app stores, streaming services or curated app bundles can generate significant new revenue by making sought-after apps and content accessible through familiar billing mechanisms. This approach addresses both the payment barrier and the demand for localised, relevant content.
Concrete examples of this trend are already visible. China’s Baidu, for instance, partnered with Orange to develop a mobile browser for users in Africa and the Middle East. The browser will be pre-installed on phones sold through Orange in Africa and provides convenient bookmarks to popular sites like Facebook, Twitter and Wikipedia—simplifying access for many first-time internet users.
The shift toward feature phone and smartphone adoption in emerging markets represents a major geographical rebalancing of the mobile revolution. For many consumers, mobile devices will increasingly replace PCs, laptops and even televisions as primary access points for information, communication and entertainment.
For marketers, operators and developers, the message is clear: act now. Build services that match local needs, use realistic and accessible billing systems, and craft marketing strategies that leverage the personal, multifunctional nature of mobile devices. By doing so, businesses can reach new customer bases, unlock fresh revenue streams and play a central role in the next phase of global mobile growth.