Apple’s adoption of the RCS (Rich Communication Services) standard for iPhones later this year could have significant implications for marketers. This move will enhance text messaging interoperability between iPhones and Android smartphones, providing a compelling reason for marketers to shift from traditional SMS messaging.
RCS is widely regarded as a more advanced version of SMS messaging and has been supported by Google and various phone carriers, including Verizon, AT&T, and T-Mobile. This standard allows for richer communication with stronger media-sharing capabilities. However, because Apple has not embraced RCS, messages sent to iPhones default to SMS format, denoted by green text bubbles rather than the blue bubbles used in iMessage.
With Apple’s adoption of RCS, marketers can leverage its benefits for business messaging (RBM), such as appearing as verified senders and sending high-quality media and interactive messages. Unlike SMS, RCS does not rely on a cellular signal connection. By 2025, the number of active RCS users is projected to reach 2.1 billion globally. This presents a significant opportunity for marketers to make their communications more visually appealing and increase consumer engagement with marketing messages.
Juniper Research estimates that global operator revenue from RCS business messaging traffic will grow from $1.3 billion in 2023 to $8 billion in 2025, largely due to Apple’s adoption of RCS. Brands using RCS have observed engagement rates 30-35% higher than SMS messages. Additionally, one Gupshup client, a travel brand, experienced a 2.7-times increase in conversion rate and a 7% higher open rate when using RCS business messaging compared to email.
Apple has confirmed that RCS adoption will come through a software update, offering iMessage-like features such as read receipts and typing indicators for messages between Android and iOS. However, RCS messages on iPhones will still appear with green bubbles. Despite this, Apple’s adoption is expected to drive RCS into the mainstream, though SMS is projected to remain dominant with 9.3 billion subscribers anticipated by 2024.
Compared to SMS, RCS offers features that enhance consumer trust, like verified sender badges. While SMS remains popular, its one-way nature may lead some marketers to reduce their reliance on it. RCS also presents a cost-effective alternative as SMS pricing can be a significant challenge for businesses. However, integrating RCS into marketing strategies requires preparedness to manage the volume and scale of replies.
In summary, Apple’s adoption of RCS for iPhones will improve text messaging interoperability between iOS and Android devices. This development presents an exciting opportunity for marketers to utilize rich messaging capabilities, increase consumer engagement, and enhance the value exchange with consumers. RCS is set to transform business messaging and become a leading channel for marketers.
