GO UP
OTT Business Messages

OTT Business Messages to Exceed 93 Billion Globally in 2023

Mobile channels are becoming increasingly important for brands and enterprises to connect with customers. This has caused a proliferation in the A2P (Application-to-Person) messaging market through the adoption of omnichannel communication strategies, rich communication
methods, conversational commerce and CPaaS to drive two-way, innovative communications. A new study by Juniper Research has found that global OTT (Over the Top) business messaging traffic will rise from 93 billion in 2023, to 254 billion by 2027. This growth of 172% will be driven by the increased availability of open OTT messaging APIs and competitive pricing models; creating a viable rich media alternative to established operator-led channels, such as SMS. OTT Business Messages

SIM card e SIM shop

 

OTT business messaging enables brands and enterprises to communicate with customers via the use of third-party messaging applications, such as WhatsApp and WeChat.

OTT Platforms to Provide Consistent Pricing for CPaaS Platforms

The research identified consistently low OTT business messaging pricing as a key driver of adoption by CPaaS (Communications Platforms-as-a-Service) platforms. As OTT messaging pricing is set by the platform itself rather than operators, this provides a far less volatile pricing model compared to SMS. OTT Business Messages

Research author Elisha Sudlow-Poole commented: “The volatility in wholesale SMS business messaging pricing provides an opportunity for OTT messaging platforms to grow their revenue, by offering stability for CPaaS platforms when negotiating traffic subscriptions with enterprises.”

ott

OTT Apps to Evolve the Business Messaging Experience

The research predicted that the advanced security and rich media properties of OTT business messaging will attract high-spending enterprise users to leverage these services. Specifically, supporting rich security features such as brand authentication will boost user activity, as brands increasingly communicate with users through verified channels.

Furthermore, the report identified that the increased processing and strict channel verification systems of OTT messaging applications will be key to ensuring that OTT communications are not susceptible to the same fraudulent activity found on channels such as SMS. Additionally, it urged CPaaS platforms to develop advanced security features, including AI-based fraud prevention, that go beyond the capabilities of the OTT messaging channel to provide value-added services for enterprises.

Introduction of Super Apps OTT Business Messages

There is evolving dialogue for A2P communications, as brand interactions are moving away from one-way messaging over a single channel to using two-way interactions via conversational messaging facilitated by OTT messaging apps. Leading OTT messaging platforms such as WhatsApp and Messenger are rapidly evolving their mobile messaging applications to include new voice and video communications. For
example, in September 2022, WhatsApp announced the release of a new voice and video calling feature, The Click Links feature, which will allow users to invite up to 32 people to a group call.
However, Juniper Research notes that whilst messaging apps such as WhatsApp are investing in improving the capabilities of existing services, there has been no overt effort from WhatsApp to integrate existing apps into its ecosystem. Instead, WhatsApp is developing its own capabilities in-house.

ott
This development of features does not only further dilute revenue opportunities for operators, through the cannibalization of operator-led traffic such as SMS and RCS, but the progress in these voice and video capabilities over the past year highlights OTT players’ ambition to evolve their communications apps into rich media platforms that offer social networks and other rich media services. However, Juniper Research urges these apps to continue to prioritize messaging as their own independent channel as the evolution and integration of other services onto these apps intensifies.
Additionally, CPaaS platforms must be able to support value-added services such as CDPs, financial services, marketing and advertising campaigns, and integrated APIs to provide an end-to-end digital experience directly within an OTT messaging interface.
Further to this discussion, Juniper Research urges CPaaS platforms to ensure that they refine their partnerships, channel support and value-added services to ensure that they are able to be an integral part to the super app ecosystem. This must be done through increasing partnerships with brands and enterprises that use OTT platforms and are anticipated to be embedded within the super app ecosystem.
Moreover, CPaaS platforms already provide a single point of contact between brands, end users and OTT platforms. Therefore, as the complexity of this ecosystem increases, the reliance on CPaaS platforms will naturally increase.

 

 

Like this? "Sharing is caring!"