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Albany, NY -- (SBWIRE) -- 10/31/2014 -- Over-The-Top services model is a key development for e-commerce sector

Over-The-Top (OTT) is the services model for the future for communications and media services, as well as a whole range of emerging ones, such as e-commerce, m-commerce, e-health, e-education, smart grids and the digital economy in general. While the rise of OTT services has created serious concerns for the traditional telecoms operators - it has also created an environment for innovation and alternative services to grow.

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Mobile commerce is one of the hottest sectors right now and the industry is finally coming into its own due to the rise of OTT services and app stores offering more digital channels for e-retailers to reach audiences. The growth of smart phones has also assisted the growth of m-commerce along with improvements in mobile infrastructure in many parts of the world. Players are slowly becoming lured into entering the mobile commerce market by the huge revenue opportunities and the potential for customer acquisition and retention.

The enormous success of smart phones is linked to the apps which are available and commercial models will be increasingly linked to these apps - which will result in further spectacular growth in m-commerce. BuddeComm sees the development of m-wallets and m-payment systems based on Near-Field Communication (NFC) as a key development for the m-commerce sector and beyond.

While a range of niche market applications will become successful; there is currently a lot of confusion and uncertainty regarding which ones will succeed - and who will make money from particular mobile e-commerce applications. Sales of entertainment based mobile apps are very popular and improved infrastructure such as fibre and 4G network rollouts is helping to drive the overall global digital media entertainment market. Incorporating social networks, online video, digital music, gaming apps and online dating; this sector is particularly driven by the uptake in mobile broadband apps and services.

In 2014 it is interesting to observe the developments occurring with the virtual currency Bitcoin. While there are security concerns regarding this growing form of Internet cash; in recent times faith in this crypto currency appears to have strengthened and we saw the emergence of the Bitcoin wallet called Coinbase. Significantly, PayPal announced a partnership with Coinbase in 2014 that would see the currency accepted by sites which offer PayPal through its subsidiary Braintree. Bitcoin is certainly gaining awareness and a perception of legitimacy around the globe.

Omni channel retailing in another emerging trend. New communication and software developments make it increasingly possible for retailers to offer a seamless shopping experience using all the available retail channels such as mobile internet devices, computers, bricks-and-mortar, television, radio, direct mail, catalogues and so on. However the level of sophistication needed to build omni-channel systems makes it difficult for many smaller organisations to keep up with the trend. This will result in a wider gap between those who are able to transform themselves and those who will be left behind. As in many other markets, well-functioning omni-channel systems can easily operate internationally, so national boundaries are becoming less of a barrier for those who want to explore overseas markets.

Given the ongoing industry developments combined with increasingly sophisticated technology advancements; the e-commerce and m-commerce sectors must represent one of the most innovative and rapidly evolving sectors worldwide and the speed that new services, features and companies appear (and disappear) is quite a spectacle to observe.

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BuddeComm’s new report, Global Digital Economy – The Rapidly Evolving E-Commerce and M-Commerce Markets, provides important insights into how the telecoms industry transformation and growth of Over-The-Top (OTT) services has both impacted upon the digital economy and the telcos. This unique report includes information and statistics on the global e-commerce, e-payments and m-commerce markets; mobile location based services and apps based on entertainment. In addition the report provides insights and statistics on the global digital advertising sector which provides a valuable source of revenue to many of those operating in the digital media sector. Insightful regional overviews written by BuddeComm’s Senior Analysts are provided for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Examples of key insights:

Mass market m-commerce is slowly coming to fruition. There appears to be a direct correlation between the frequency of mobile internet use and the use of advanced internet services such as mobile instant messaging, email and social networking.

Consumer willingness to seek cheaper and broader retail options is a driver behind both the growth of e-commerce and m-commerce.

Global m-commerce sales are expected to reach around $120 billion globally in 2015.

Banks are realising the world is changing and social banking is becoming a key trend. The Internet media companies continue to battle for supremacy in this vibrant market.

Outside of the banks, PayPal has established itself as the most advanced e-payment system worldwide. In September 2013 PayPal launched its Beacon service with utilises Bluetooth technology and allows a shopper to complete their in-store purchase at selected retail outlets without having to physically open the PayPal app.

Cloud computing allows e-retailers which don’t have the resources or capacity to manage their sites infrastructure to tap into a cloud based services. Mobile cloud-based payments are being explored via HCE technology.

In 2014 the rise of alternative Over-The-Top mobile messaging services is becoming a serious threat to the traditional operators’ revenue streams and is considered to be a disruptive development. It is important to note that messaging itself is not in decline – it is the business models which are changing.

Asia Pacific in particular is considered a key area for future e-commerce and m-commerce growth. Singapore, Hong Kong, Japan, South Korea and Australia are just some of the countries in Asia Pacific which have embraced online spending and China and India offer enormous potential in the future.

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