educational

On Mobile: Emerging Markets

In my last article I wrote about “The Mobile Business in Europe.” Today I’d like to provide you with some facts about Emerging Markets and why you shouldn’t ignore them for your mobile strategy.

Asia, Africa, Eastern Europe and South America are massive markets and offer a huge potential for the global economy in the future. For the mobile business these markets are already today very important.

Mobile payments are very popular in these countries due to the lack of bank accounts and credit/debit cards.

Due to facts such as the size of a country, the disposable income demographics and several other aspects, these countries have a very low PC penetration compared to welldeveloped countries. First of all, these countries don’t have a good broadband or landline infrastructure. Their territories are too large, so it would be very expensive for companies to establish a good cable infrastructure for Internet and telephone. Further, these companies have to generate profit, and the question remains as to whether people in these regions would use an Internet or telephone connection. From the providers’ perspective there is great potential financial risk involved in investing in and building this infrastructure.

Accepting the premise that the cable infrastructure would be too expensive to create, we have to consider that Personal Computers are also a very expensive component, and most people in these regions could not afford a PC either. There were a lot of initiatives to provide laptops to socio-economically challenged populations around the world —the $100 laptop was one of them.

More interesting is the fact that we have today a bit more than 1 billion PCs worldwide, compared to over 5 billion mobile subscribers —and that ratio is growing every day! Lastly, it means that people in emerging markets are able to afford a mobile phone.

It is certainly easier and cheaper to establish a wireless infrastructure compared to a cable infrastructure.

The logical consequence of all this is that the majority of the world’s population is accessing the World Wide Web from a mobile device and not from a PC. In the very early days of the mobile Internet, traffic from countries including India, Indonesia and South Africa was the highest.

One of the reasons was that the carriers there were not charging the users for browsing the web. Of course these numbers are changing dramatically as Smartphones and cheap data tariff plans are becoming more and more popular in industrial countries. However, the traffic from emerging markets is still huge!

The question is always, how can this traffic be monetized?

There are four aspects you must consider before you can start earning money in these regions.

1. Use mobile billing and forget the credit card.

The majority of people in these markets don’t have a bank account. So they don’t have a credit card either! Further, many credit card companies block these countries due to fraud issues. So, the only chance you have to collect money is to use mobile billing!

Mobile payments are very popular in these countries due to the lack of bank accounts and credit/debit cards. A whole new mobile banking industry arises by reason of the fact mentioned above. During the Mobile World Congress (the largest mobile event in the world) in Barcelona last February a lot of promising companies presented their solutions for mobile banking. From my point of view mobile banking will just be important in markets like these, as all other countries have well established banking infrastructures.

So mobile payment is the only sure way to generate revenue in these emerging markets!

2. Price accordingly.

If you’re in the lucky position that your credit card provider doesn’t block one of these countries and you generate one or two transactions per month - you may ask yourself why this is possible! I would bet your pricing is way too expensive. You can’t offer the same price you would offer in your home market. As mentioned before, the income earnings situation will be very different for these regions, and you’ll want to provide as many people as possible the opportunity to afford your products or service. So price your content accordingly.

A good indicator for conceiving your price points is the local “beer index.” Find out how much a local (not imported) beer costs, and orient and adjust your pricing accordingly.

3. Quantity is what counts.

You’ll be surprised when you’re checking the local “beer-index” that beer might be very cheap for certain countries and people can always afford it. When they can afford local beer, they are also able to consume digital content on mobile phones for the same price.

Once you have the infrastructure (mobile billing) and the right pricing you’ll be surprised how your transactions will increase. A factor of 20-50 is easily possible. And now imagine how many transactions you could do in countries like India or Indonesia with a very large population!

4. Forget smartphones for now.

People are not able to purchase computers, as they are too expensive. They also cannot afford mobile content when it is overpriced.

So, do you really think really they’re able to purchase Smartphones? I don’t think so. Nokia is still the largest handset manufacturer in the world, especially within the low-cost segment. You should ensure to support a wide range of non-Smartphones to monetize this traffic.

SexGoesMobile can help you to monetize this traffic, as we support 8,000-plus handsets and provide mobile billing in 50-plus countries. For further information about non-Smartphones and mobile billing you should check my recent articles where I provide more information on targeting users across the handset spectrum.

I hope you’ve enjoyed my first article series covering the mobile adult business, and that you’ve learned something useful as you read. I know there are a lot more topics to cover, and if you have something you’d like me to investigate, please send me any questions, feedback or ideas for other articles. Don’t hesitate to contact me via ck@sexgoesmobile.com or my XBIZ.net profile https://www.xbiz.net/SGMChris.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

WIA Profile: Lexi Morin

Lexi Morin’s journey into the adult industry began with a Craigslist ad and a leap of faith. In 2011, fresh-faced and ambitious, she was scrolling through job ads on Craigslist when she stumbled upon a listing for an assistant makeup artist.

Women In Adult ·
profile

Still Rocking: The Hun Celebrates 30 Years in the Game

In the ever-changing landscape of adult entertainment, The Hun’s Yellow Pages stands out for its endurance. As one of the internet’s original fixtures, literally nearly as old as the web itself, The Hun has functioned as a living archive for online adult content, quietly maintaining its relevance with an interface that feels more nostalgic than flashy.

Jackie Backman ·
opinion

Digital Desires: AI's Emerging Role in Adult Entertainment

The adult industry has always been ahead of the curve when it comes to embracing new technology. From the early days of dial-up internet and grainy video clips to today’s polished social media platforms and streaming services, our industry has never been afraid to innovate. But now, artificial intelligence (AI) is shaking things up in ways that are exciting but also daunting.

Steve Lightspeed ·
opinion

More Than Money: Why Donating Time Matters for Nonprofits

The adult industry faces constant legal battles, societal stigma and workplace challenges. Fortunately, a number of nonprofit organizations work tirelessly to protect the rights and well-being of adult performers, producers and industry workers. When folks in the industry think about supporting these groups, donating money is naturally the first solution that comes to mind.

Corey D. Silverstein ·
opinion

Consent Guardrails: How to Protect Your Content Platform

The adult industry takes a strong and definite stance against the creation or publication of nonconsensual materials. Adult industry creators, producers, processors, banks and hosts all share a vested interest in ensuring that the recording and publication of sexually explicit content is supported by informed consent.

Lawrence G. Walters ·
opinion

Payment Systems: Facilitator vs. Gateway Explained

Understanding and selecting the right payment platform can be confusing for anyone. Recently, Segpay launched its payment gateway. Since then, we’ve received numerous questions about the difference between a payment facilitator and a payment gateway. Most merchants want to know which type of platform best meets their business needs.

Cathy Beardsley ·
opinion

Reinventing Intimacy: A Look at AI's Implications for Adult Platforms

The adult industry has long revolved around delivering pleasure and entertainment, but now it’s moving into new territory: intimacy, connection and emotional fulfillment. And AI companions are at the forefront of that shift.

Daniel Keating ·
profile

WIA: Sara Edwards on Evolving Clip Culture and Creator Empowerment

Though she works behind the scenes, Sara Edwards has had a front-row seat to the evolution of adult content creation. Having been immersed in the sector since 1995, she has a unique perspective on the industry.

Jackie Backman ·
profile

Segpay Marks 20 Years of High-Risk Triumphs

Payment processors are behind-the-scenes players in the world of ecommerce, yet their role is critical. Ensuring secure, seamless transactions while navigating a rapidly changing regulatory landscape requires both technological expertise and business acumen.

Jackie Backman ·
opinion

The SCREEN Test: How to Prepare for Federal Age Verification

For those who are counting, there are now 20 enacted state laws in the United States requiring age verification for viewing online adult content, plus numerous proposed laws in the works. This ongoing barrage has been exhausting for many in the adult industry — and it may be about to escalate in the form of a potential new AV law, this time at the federal level.

Corey D. Silverstein ·
Show More