Keys to the kingdom

Content underpins the VAS market and is going to be key to operator strategy, messaging uptake and user acquisition. Paul Skeldon takes a look at how these factors interlink and what content is set to drive the market

One of the overriding themes of this year’s World Telemedia Marbella show was that of user acquisition (see page 1). While the VAS content segment of the market is in rude health – and showing extraordinary growth opportunities across many regions, not least Africa and the Middle East – there is a growing worry that, with so many services all chasing the same eyeballs, cost of acquisition is rising and return on ad spend (ROAS) is declining.

This is particularly prevalent in games. As Tony Pearce, CEO of Reality+ – a blockchain based games developer – sees it, for smaller, niche players like him, the cost per install of games is now in the “tens of dollars” and is slowly becoming unviable.

One solution, he believes, is for smaller players to developed and incubate games and then licence them on to the bigger players who can afford the time and money needed to grow the spending user base to the levels needed to make money. However, this means diluting the revenues for these smaller developers.

Another solution, however, is to focus in on the content being offered.

CONTENT CONNIPTIONS

Seriously Fresh Media’s Julia Dimambro believes that getting the right kind of content – and that means being ultra-niche – holds the key to better user acquisition in the content end of the VAS business.

In her view, picking a category such as Kenyan GenZ-ers who are into crocheting and serving up a variety of well targeted crochet content off the back of those ads not only targets the right people, but gives them what they want –and it is so niche that ROAS is more healthy.

Her view was echoed across the show by many other speakers and exhibitors who all point to how getting eyeballs relies wholly now on really compelling content.

Seriously Fresh has long focussed on niche content, being a key player in health and wellbeing during the lockdown. Now the company is also seeing the benefits of broadening out what it offers and is embracing sports content (see panel).

This, says founder Julia Dimambro, is what SPs an consumers want more of right now and, thanks to some deals with

some big providers of sports news content, Seriously Fresh has added this to their roster.

While exploring niche and broader specialist interest content is one way to go to drive up engagement, for others it revolves around pushing the limits of technology. Indian content powerhouse Hungama is a prime example. It is offering immersive, 3D content that not only gives the consumer the kinds of content they want – sports, music, gaming, celebrity and so on – but puts them right in the middle of it.

Taking peripheral sports content and making it 3D allows the user to be immersed in the pre and post-match debates and analysis, creating a unique experience for the user – an experience that pulls in more users and, perhaps more crucially, makes them more sticky and more likely to keep spending and engaging.

All round, however, the key is to create the right content for the audience. That now involves looking locally and hyper-locally at markets and tailoring content accordingly – again using tech; this is perhaps where AI can really come into its own.

THE ROLE OF MNOS

Perhaps, too, the answer lies in developing the role of MNOs. In many regions such as the Middle East, carriers play a much bigger role in disseminating content and VAS than anyone else bar Google. Perhaps this is a role they can expand and enhance.

For smaller players such as Reality+, maybe working with operators to target their ‘captive’ audiences can help get services in front of eyeballs on a different, less crowded and competitive platform.

Operators also have other ways to reach consumers, such as messaging channels and, to some degree, handsets and other means of reach. These are all worth exploring as ways to engage consumers, generate eyeballs and create a better level of ROAS for developers. And one key way could be through messaging – particularly RCS (see page 26).

RCS HOLDS THE KEY?

Rich communications service (PCS) is set to triple in traffic in the next five years, according to data out last week and it will be at the expense of SMS. According to data from Omdia collated for Infobip, RCS Application to Person (A2P) and Person to Person (P2P) traffic will increase from 1.5 trillion messages this year to more than 6 trillion messages in 2029. As a result, A2P RCS will generate revenues of $4.2 billion by 2029.

However, this growth is going to come at the expense of SMS, a separate study finds. According to separate figures from Juniper Research, SMS’s market share by value will reduce to 32% of global mobile messaging revenue over the same period, down from 45% in 2024.

But, the decline of SMS isn’t just down to RCS taking over. More, SMS is starting to be seen as too costly and too open to fraud. This is a worrying trend

for MNOs, many of whom still make a tidy sum out of SMS. For telemedia it offers both threat and opportunity. On the one hand, SMS based services – including PSMS – still make money for many players in

many parts of the world. RCS is still to offer up a convincing business model for replacing this (although I am sure one will appear in due course).

On the other hand, however, adopting RCS – in fact embrac-

ing the raft of OTT messaging services out there – creates whole new ways in which to make money and create new services.

In conjunction with the VAS community’s need for better

user acquisition, there is an opportunity here for many to certainly look at how to create new acquisition tools that leverage the interactivity seen in RCS and OTT messaging (see page 26).

Hot content and services in 2025

The value-added services (VAS) market is rapidly evolving across the Middle East, Africa, Latin America (LatAm) and Europe, driven by increasing smartphone penetration, 5G rollouts and consumer demand for digital services. By 2025, several types of content are expected to dominate the VAS market in these regions, each shaped by regional consumer preferences, socio-economic factors, and technological advancements. So what is going to be big and where?

GAMING AND ESPORTS

Gaming and eSports are projected to grow significantly, especially in regions like the Middle East, where youth demographics dominate, and Europe, where eSports culture is already wellestablished. Africa is emerging as a gaming market, driven by increasing smartphone penetration and the availability of affordable devices. 5G networks in these regions will enable smoother gaming experiences, especially for cloud gaming and augmented reality (AR) games.

BIG REGIONS: Middle East, Africa, and Europe.

KEY PLAYERS: Tencent, Activision Blizzard, Microsoft (Xbox Cloud Gaming), and regional telecom operators like MTN and Etisalat are expected to capitalise on this trend by partnering with gaming platforms and offering exclusive content bundles.

VIDEO STREAMING AND OTT CONTENT

OTT platforms like Netflix, Amazon Prime, and Disney+ will remain dominant, with regional players like Shahid (Middle East), Globoplay (Brazil/LatAm), and Sky (Europe) expanding their footprints. In LatAm and the Middle East, local-language content and culturally relevant programming will be critical to attracting subscribers. Europe, meanwhile, will see increasing demand for premium European productions and niche content.

KEY DRIVERS: Growth in 5G adoption will drive the consumption of high-quality video content, while partnerships between telecom operators and OTT platforms will make streaming more accessible.

BIG REGIONS: Middle East, LatAm, and Europe.

KEY PLAYERS: Netflix, Shahid, Globoplay, Vodafone, Orange, and Telefónica.

FINTECH AND MOBILE FINANCIAL SERVICES

Mobile financial services, such as mobile wallets, microloans, and insurance, will see explosive growth in regions with large unbanked populations like Africa and LatAm. Telecom operators in Africa, such as Safaricom (M-Pesa), MTN, and Airtel, are already at the forefront of mobile money, and this trend will continue to expand into services like credit scoring, savings accounts, and international remittances.

BIG REGIONS: Africa and LatAm.

KEY PLAYERS: Safaricom, MTN, Orange Money, Mercado Libre, and regional fintech startups collaborating with telecom operators.

HEALTH AND EDUCATION APPS

Demand for telehealth and edtech solutions will rise, driven by inadequate access to traditional healthcare and education in these regions. Mobile operators are expected to bundle these services with affordable data plans. For example, partnerships with health apps and remote learning platforms will cater to underserved rural populations.

BIG REGIONS: Africa and LatAm.

KEY PLAYERS: Vodacom, MTN, Coursera, Edmodo, and local elearning startups.

SOCIAL MEDIA AND INFLUENCER MARKETING

Social media content monetization will thrive in regions with younger populations, such as the Middle East and LatAm, where platforms like Instagram, TikTok, and YouTube dominate. Telecom operators will partner with influencers and content creators to drive data consumption and offer exclusive packages.

BIG REGIONS: Middle East and LatAm.

KEY PLAYERS: TikTok, Meta (Instagram/Facebook), YouTube, and local creators.

AR/VR AND METAVERSE CONTENT

AR/VR content will find a strong foothold in Europe, where advanced infrastructure supports the metaverse, and the Middle East, where governments are investing heavily in futuristic digital ecosystems (e.g., Saudi Arabia’s NEOM project). This content will cater to gaming, education, and virtual tourism.

BIG REGIONS: Europe and the Middle East.

KEY PLAYERS: Meta, HTC, Microsoft, Etisalat, and Vodafone.

WHY THESE TRENDS ARE REGION-SPECIFIC MIDDLE EAST: High disposable incomes and a youthful, tech-savvy population make it a hotbed for gaming, OTT, and metaverse content.

AFRICA: Limited traditional banking and healthcare infrastructure drive demand for mobile financial services and health apps.

LATAM: A growing middle class and demand for local-language entertainment propel OTT and social media content.

EUROPE: Advanced 5G infrastructure and regulatory support enable innovations in AR/VR, gaming, and premium OTT services. By 2025, the telecom VAS market in these regions will be shaped by collaborations between telecom operators, content creators, and technology companies, with tailored offerings meeting the diverse needs of these dynamic markets.