OTT Business Messages to Exceed 93 Billion in 2023
Global OTT (Over the Top) business messaging traffic will rise from 93 billion in 2023, to 254 billion by 2027, according to a new study by Juniper Research. 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.
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. “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,” said research author Elisha Sudlow-Poole.
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.