Key Takeaways
A research says that the market growth of OTT messaging is expected to exceed to 175 billion by 2025. With the rise of internet-based communication channels, OTT (Over-The-Top) messaging has become a significant player in how businesses interact with their audience.
As digital communication evolves, OTT messaging offers a modern, versatile alternative to traditional methods, enhancing both engagement and efficiency in business communications.
What is OTT Messaging?
OTT is an abbreviation for "over-the-top," referring to third-party instant messaging platforms that use an internet connection to transmit communication instead of a mobile network. Unlike SMS, which relies on cellular networks, OTT messaging operates 'over the top' of these networks, making it an alternative to traditional text messaging.
Key Differences Between OTT Messaging and SMS
While both OTT messaging and SMS enable communication via mobile devices, they operate on fundamentally different technologies.
- Transmission Method
OTT messaging relies on an internet connection, whereas SMS is transmitted through cellular networks. Although, SMS over Wi-Fi is also possible, but very less people use the same.
- Device Compatibility
SMS is universally supported across all mobile phones without additional apps, whereas OTT messaging requires recipients to install specific apps like WhatsApp or Telegram.
Popular OTT Messaging Platforms
OTT messaging apps have seen significant growth in recent years. Some of the most widely used platforms include
- Facebook Messenger
- Telegram
- Instagram Messaging
- Google Business Messages
OTT Messaging Vs SMS: Which is Better?
- Transmission Channels
OTT messaging demands an internet connection, which can be a limitation in areas with poor connectivity. SMS, however, works wherever there’s a cell signal, making it more reliable in remote or less connected regions. This is also the reason why SMS is very popular for SMS verification services.
- Audience Reach
With SMS, businesses can reach nearly anyone with a mobile phone, especially with the help of an SMS API. OTT messaging, on the other hand, is limited by the need for recipients to have a particular app installed and an active internet connection.
- Content Flexibility
SMS restricts messages to 160 characters of plain text (except for concatenated messages) with no support for multimedia. OTT platforms allow for richer interactions, including long-form content, multimedia and even real-time voice or video communication, making them a powerful tool for engaging customers.
- Scalability and Group Interaction
SMS is excellent for mass communication and broadcasting messages to large audiences. However, it’s not ideal for group chats. OTT apps shine in this area, offering flexible group messaging and even public channels for brand communities.
- Cost Considerations
SMS is typically charged per message, which can add up quickly for large SMS campaigns. While some OTT apps are free, others may involve subscription fees or charges for business use, but they often allow for more extensive communication at lower costs.
How OTT Messaging Can Be Used in Business?
OTT messaging is versatile, offering numerous applications in business communications as:-
- Security Benefits
OTT messaging platforms often provide end-to-end encryption, offering superior security for sensitive communications compared to SMS, which lacks this level of protection. Compliance with regional data protection laws, such as GDPR or TCPA, remains essential. WhatsApp OTP is becoming increasingly popular especially in India and Indonesia.
- Automation in Messaging
SMS benefits from easy automation through SMS APIs, ideal for sending OTP SMS and transactional messages. OTT platforms, while rich in content, often restrict automation and may penalize automated bulk messaging.
- Content Richness
OTT messaging allows for a variety of content types, including images, videos and interactive elements, which can enhance customer engagement and make communications more dynamic.
- Cost Efficiency
Many OTT messaging apps are free to use, whereas SMS incurs costs per message sent. Businesses can leverage OTT platforms to reduce communication expenses while still delivering effective messages.
- Global Reach
OTT messaging apps like WhatsApp and Facebook Messenger have a vast global user base, enabling businesses to connect with a wide audience. However, SMS can be more reliable in regions with limited internet access.
- Marketing and Promotions
Utilize rich media to create compelling WhatsApp marketing campaigns, share special offers or introduce new products with engaging images and videos. This approach can enhance the effectiveness of promotional efforts and capture audience interest. WhatsApp Now helps streamlining marketing campaigns to help enhance engagement and ROI for your business.
- Customer Notifications
Send important updates through notifications on WhatsApp, such as back-in-stock alerts, appointment reminders and order confirmations. These timely notifications ensure that customers are kept informed and engaged with your business.
- Emergency Communications
OTT apps can quickly disseminate critical information, such as emergency alerts or unexpected office closures, to ensure that your audience receives important updates in a timely manner.
- Customer Support
Facilitate real-time, two-way conversations for customer service and issue resolution through WhatsApp Business on web and application. This interactive approach can improve customer satisfaction and streamline support processes.
- Feedback Collection
Use OTT messaging to request customer reviews or feedback after transactions, allowing you to gauge satisfaction and gather insights for improving your products and services.
OTT Messaging for Internal Communication
- Customizable Workflows
OTT messaging platforms often allow businesses to customize workflows and automate routine tasks through integrations and bots. For example, platforms like Slack and Microsoft Teams can integrate with various tools and apps to automate notifications, task management and reporting. This customization helps streamline operations, reduce manual work and improve overall efficiency.
- Cross-Departmental Coordination
OTT messaging apps facilitate seamless cross-departmental communication by creating channels or groups for specific projects or topics. This setup encourages collaboration between different departments, breaking down silos and improving coordination. By centralizing discussions and resources, teams can work together more effectively on shared objectives. One such example is using WhatsApp for internal communication.
- Training and Onboarding
OTT messaging platforms can be used to support training and onboarding processes for new employees. Companies can create dedicated channels for training materials, FAQs and interactive sessions. This approach helps new hires get up to speed quickly and easily, providing them with the resources they need to succeed in their roles.
- Feedback and Surveys
Using OTT messaging, businesses can easily gather feedback and conduct surveys within the organization. Features like polls and forms can be utilized to collect employee opinions on various topics, from work processes to company policies. This feedback loop helps management make informed decisions and address concerns more effectively.
- Event Coordination
OTT messaging apps like WhatsApp simplify the coordination of internal events such as meetings, workshops and team-building activities. Employees can use these platforms to schedule events, send reminders and share agendas. The ability to integrate with calendar apps and set up automated reminders ensures that everyone stays informed and organized, leading to more successful event management.
Conclusion
In conclusion, choosing between SMS and OTT messaging depends on the specific needs of your business. SMS excels in delivering reliable, time-sensitive communications, making it a strong choice for critical alerts and 2FA.
On the other hand, OTT messaging stands out for its rich content and enhanced security, perfect for creative and interactive customer engagement. By integrating both channels into your communication strategy, you can harness the strengths of each, ensuring a comprehensive and effective approach to reaching and engaging your audience
