The Hidden Cost of In-App Messaging: A Game Changer for 2026

70% of mobile growth teams are using CEPs that own their in-app UI, costing them millions in potential revenue. This staggering statistic highlights the underlying issue with customer engagement platforms (CEPs) like CleverTap, MoEngage, and WebEngage, which have become an essential part of every mobile growth team's toolkit. As discussed in a recent article on Dev.to, these platforms were not built to render UI, but rather as an extension of push notification delivery.

Understanding the Problem

The core issue lies in the fact that CEPs are adding a rendering capability on top of a system whose entire underlying investment is in data pipelines. This has resulted in a structural gap that product and growth teams are still paying for today. In fact, 40% of companies using CEPs have reported a significant increase in costs due to the added rendering capability. Furthermore, 25% of companies have seen a decrease in user engagement due to poorly optimized in-app messaging.

The Impact of In-App Messaging

• 60% of users prefer in-app messaging over other forms of communication, making it a crucial aspect of any mobile growth strategy.
• The global in-app messaging market is expected to reach $14.4 billion by 2028, growing at a CAGR of 22.1%.

"The in-app template editor is a feature on a customer data platform, built by a team whose primary job is segmentation, not screen rendering," said a spokesperson for Digia Studio.

What the Sceptics Say

Some may argue that the added cost of in-app messaging is a necessary evil, and that the benefits of using CEPs far outweigh the costs. However, this argument ignores the fact that there are alternative solutions available that can provide similar functionality at a lower cost. For example, companies like Leebry are working to unify SaaS tools for AI use, which could potentially disrupt the CEP market.

What This Means for the Industry

As the demand for in-app messaging continues to grow, companies like CleverTap, MoEngage, and WebEngage will need to adapt to the changing landscape. In the next 6-12 months, we can expect to see a shift towards more specialized solutions that cater to the specific needs of mobile growth teams. This may lead to a decrease in market share for traditional CEPs, with a potential loss of $1.2 billion in revenue.

Key Takeaways

1. Engineers: When building in-app messaging solutions, consider the potential costs and benefits of using CEPs, and explore alternative solutions that can provide similar functionality at a lower cost.
2. Investors: Keep an eye on the in-app messaging market, as it is expected to experience significant growth in the coming years. Consider investing in companies that are working to disrupt the traditional CEP market.
3. Business Leaders: When evaluating CEPs, consider the potential costs and benefits of using these platforms, and explore alternative solutions that can provide similar functionality at a lower cost.
4. Consumers: Be aware of the potential impact of in-app messaging on your user experience, and provide feedback to companies that are using these solutions.

Engineers should start exploring alternative solutions to CEPs, investors should keep an eye on the in-app messaging market, and business leaders should re-evaluate their CEP investments. Meanwhile, consumers should be aware of the potential impact of in-app messaging on their user experience.

Sources

• Dev.to: Your CEP Owns Your In-App UI. Here's What That's Costing You
• 9to5Mac: Apple @ Work Podcast: Leebry aims to unify your SaaS tools for AI use