WhatsApp, Messenger and Viber to Cannibalise SMS Business Messaging Traffic.

A new Juniper Research study 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 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 messaging enables brands and enterprises to communicate with customers via the use of third-party messaging applications, such as WhatsApp and WeChat.

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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.

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 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 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.

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