What is OTT Messaging? OTT vs. SMS?

Heard of OTT messaging? Not quite sure what it’s all about? If you’ve been keeping up with digital communication trends, you’ve likely come across the term, but perhaps you’re still unclear about what it really means. With the rise of popular messaging apps like WhatsApp, Facebook Messenger, and Google Business Messages, understanding OTT messaging has become increasingly important for businesses looking to connect with their customers in the most effective way.

According to recent statistics, billions of people worldwide are using these messaging platforms daily, making OTT messaging a critical tool for businesses. This blog will cover what OTT messaging is, how it works, and why it’s becoming a vital part of modern communication strategies. Whether you’re already familiar with SMS or completely new to OTT, this guide will help you understand its benefits and how to integrate it into your business.

What is OTT Messaging?

OTT stands for Over-The-Top, a term used to describe messaging services that operate over the internet, bypassing traditional telecom networks. Unlike SMS, which relies on cellular networks, OTT messaging uses the internet to deliver messages. This method allows for richer communication, including text, images, videos, and more.

How OTT Messaging Works

OTT messaging works by utilizing a text-based communication platform that sits “over the top” of an existing internet service. This is similar to how devices like Apple TV deliver content over existing broadband connections. By using OTT messaging, businesses can communicate with their customers through apps they are already familiar with, such as WhatsApp or Facebook Messenger.

Accessibility: Available wherever there is internet access.
Rich Media: Allows for sending more than just text – images, videos, and even interactive content can be shared.
Personalized Communication: OTT messaging offers the ability to engage in one-on-one conversations that are personalized and trackable.

With the vast majority of global internet users accessing these platforms regularly, OTT messaging has become a preferred method for businesses to connect with their customers.

The Benefits of OTT Messaging for Businesses

Customer Engagement

OTT messaging enables businesses to meet customers where they are most active—on their favorite messaging apps. This direct connection fosters higher engagement levels, as customers appreciate being able to communicate in a familiar and convenient way. The personalized nature of OTT messaging also helps build stronger relationships between businesses and their customers.

High Engagement Rates: Customers are more likely to respond to messages sent via platforms they frequently use.
Personalized Experience: Businesses can tailor their messages based on customer preferences and behaviors.
Increased Satisfaction: Quick and easy communication leads to higher customer satisfaction.

Ease of Use and Management

Managing multiple conversations across various platforms can be daunting, but OTT messaging platforms simplify this process. These platforms allow businesses to handle all their chats from one centralized location, making it easier to manage customer interactions efficiently.

Centralized Management: All conversations can be accessed and managed from a single platform.
Scalability: Easy to scale communications as your business grows.
Efficient Workflow: Streamlined processes for responding to inquiries, providing customer support, and managing marketing campaigns.

By integrating OTT messaging into your communication strategy, you can ensure that all customer interactions are handled smoothly and effectively.

The Most Popular OTT Messaging Apps

WhatsApp has become a household name with over 2 billion monthly active users. It’s an incredibly popular platform for personal communication, but it’s also a powerful tool for businesses. WhatsApp Business allows companies to manage customer interactions more effectively by sorting and responding to messages in a timely manner.

Ease of Use: Simple to set up and manage.
Wide Reach: Ideal for businesses with an international customer base.
Personalized Messaging: Ability to create personalized customer experiences.

Facebook Messenger

Facebook Messenger is another giant in the OTT messaging world, with nearly 3 billion users. Businesses can use Messenger to provide live chat, customer support, and even direct messaging campaigns. It’s an excellent platform for maintaining an active presence where your customers spend their time.

Instant Connectivity: Direct connection with customers on Facebook.
Versatile Communication: Supports text, voice, video, and rich media.
Live Chat Integration: Easily integrate Messenger into your website for real-time support.

Instagram Direct Messages (DMs)

Instagram DMs offer a unique way for businesses to connect with customers directly through their favorite social media platform. DMs are perfect for answering questions, providing support, or simply engaging in casual conversations about your brand.

Visual Engagement: Leverage the visual nature of Instagram to enhance communication.
Customer Support: Provide quick responses to customer inquiries.
Brand Interaction: Engage with customers through stories, posts, and direct messages.

Google Business Messages

Google Business Messages allows customers to connect with businesses directly from Google search and Maps. This feature is particularly useful for local businesses that want to make it easy for customers to reach them.

Integrated Communication: Customers can message you directly from search results.
Local Engagement: Perfect for businesses with a strong local presence.
Ease of Access: Simple to enable and manage through your Google Business account.

These platforms are just a few examples of how OTT messaging can be utilized to enhance customer interactions and improve overall communication strategies.

OTT Messaging vs. SMS: What’s the Difference?

When it comes to business communication, both OTT messaging and SMS serve as powerful tools, each with its unique strengths and limitations. Understanding the differences between these two methods is crucial for determining which one best suits your communication strategy. Below, we explore the key distinctions between OTT messaging and SMS, focusing on their technical aspects, cost implications, customer requirements, and message flexibility.

Technical Differences

Medium of Communication

The primary technical difference between OTT messaging and SMS lies in the medium through which messages are delivered. OTT messaging operates over the internet, while SMS relies on traditional mobile carrier networks. This fundamental distinction has significant implications for how each messaging service functions and the types of content they can support.

Internet-Based (OTT Messaging): OTT (Over-The-Top) messaging uses internet connectivity to transmit messages. This means that as long as users have access to Wi-Fi or mobile data, they can send and receive messages through apps like WhatsApp, Facebook Messenger, or Google Business Messages. The reliance on the internet allows OTT messaging to offer a richer set of features compared to SMS.
Network-Based (SMS): In contrast, SMS (Short Message Service) operates over mobile carrier networks. Messages are sent via the cellular network, making SMS widely accessible, even in areas with poor or no internet connectivity. However, this also means that SMS is dependent on the availability and strength of the mobile signal, which can vary based on location.

Content Delivery and Format

OTT messaging and SMS also differ in the types of content they can deliver. While both methods support text communication, OTT messaging offers more advanced capabilities, particularly in terms of rich media and interactive content.

Rich Media (OTT Messaging): One of the significant advantages of OTT messaging is its ability to support various content formats. Businesses can send not only text but also images, videos, audio clips, documents, and even interactive elements like buttons and quick replies. This multimedia capability makes OTT messaging more engaging and suitable for complex communication needs, such as customer support, marketing campaigns, or product demonstrations.
Text-Based with Limited Multimedia (SMS): SMS, on the other hand, is primarily text-based with a character limit of 160 characters per message. While SMS does support Multimedia Messaging Service (MMS), which allows for the sending of images, videos, and audio files, the functionality is more limited compared to OTT messaging. MMS also tends to be more expensive and less widely used, particularly outside of the United States.

Message Delivery Speed and Reliability

Both OTT messaging and SMS are known for their speed and reliability, but the way they achieve this varies.

Instant Delivery via Internet (OTT Messaging): OTT messages are delivered almost instantly, provided the recipient has an active internet connection. The use of internet protocols ensures that messages are delivered quickly, even when containing large files or rich media. Additionally, OTT platforms often include features like read receipts and delivery notifications, providing both sender and recipient with real-time updates on the status of the message.
Direct Network Transmission (SMS): SMS messages are sent directly through the mobile network, which can sometimes result in slightly slower delivery times, especially in areas with weak signal strength. However, because SMS does not rely on an internet connection, it can be more reliable in situations where internet access is unavailable or unstable. SMS also provides delivery notifications, but without the rich tracking features found in OTT messaging.

Cost Considerations

When evaluating the differences between OTT messaging and SMS, cost is a critical factor to consider. The costs associated with each service can vary significantly depending on the region, the volume of messages sent, and the specific requirements of your business.

Cost of Sending Messages

Free or Low-Cost with Data Plan (OTT Messaging): One of the most appealing aspects of OTT messaging is its low cost. Sending messages through platforms like WhatsApp or Facebook Messenger is generally free, as long as the user has an active internet connection or data plan. This makes OTT messaging a cost-effective solution for businesses, especially when sending large volumes of messages or operating in international markets where SMS costs can be prohibitive.
Carrier Fees Apply (SMS): In contrast, SMS typically incurs a fee for each message sent, both for the sender and, in some cases, the recipient. These fees can vary widely depending on the carrier, the country, and whether the message is being sent domestically or internationally. For businesses that need to send a high volume of messages, these costs can add up quickly, making SMS a more expensive option than OTT messaging.

International Messaging Costs

No Additional Costs for International Messages (OTT Messaging): Because OTT messaging operates over the internet, there are no additional charges for sending messages internationally. This makes it an ideal choice for businesses with a global customer base, allowing them to communicate with customers in different countries without worrying about high international SMS fees.
Higher Costs for International SMS (SMS): Sending SMS messages across international borders often incurs higher costs, as carriers may charge extra fees for delivering messages to different countries. These costs can be a significant consideration for businesses that need to reach customers worldwide, potentially making SMS a less attractive option for international communication.

Customer Requirements

Another key difference between OTT messaging and SMS lies in the requirements for customers to receive and interact with messages. These requirements can influence the reach and accessibility of your communication efforts.

Device and App Requirements

App Installation Required (OTT Messaging): For customers to receive OTT messages, they must have the appropriate app installed on their device. This means that businesses must consider their target audience’s preferences and app usage when choosing OTT messaging as a communication channel. Popular apps like WhatsApp and Facebook Messenger have large user bases, but if your customers do not use these apps, OTT messaging may not be the best option.
No App Needed, Just a Phone Number (SMS): One of the main advantages of SMS is its simplicity and universality. All that is required to receive an SMS message is a mobile phone with a valid number. This makes SMS a highly accessible communication method, as it does not depend on the customer having a specific app installed or being connected to the internet.

Opt-In and Privacy Considerations

Consent and Opt-In Policies (OTT Messaging): Many OTT platforms require explicit consent from users before businesses can send them messages. This can involve customers opting in through the app itself or providing consent via another channel. While this ensures privacy and compliance with regulations like GDPR, it may add an extra step to the customer onboarding process.
Regulatory Compliance (SMS): SMS also requires businesses to obtain consent from customers before sending messages, particularly for marketing communications. However, the process is often simpler, with customers typically opting in by providing their phone numbers during a transaction or signup process. SMS is generally considered more straightforward in terms of compliance, but businesses must still adhere to local regulations regarding consent and message frequency.

Message Flexibility

The flexibility of messages—how they can be formatted, the length, and the types of content included—is another critical area where OTT messaging and SMS differ.

Message Length and Content Types

Unlimited Length and Rich Content (OTT Messaging): One of the significant advantages of OTT messaging is the ability to send messages of unlimited length. This means businesses can provide more detailed information, share rich content like images and videos, and include interactive elements such as quick reply buttons. This level of flexibility makes OTT messaging ideal for customer support, marketing campaigns, and other scenarios where more complex communication is needed.
160 Character Limit and Basic Content (SMS): SMS messages are restricted to 160 characters, which can limit the amount of information that can be conveyed in a single message. While longer messages can be split into multiple SMS messages, this can be costly and may result in a less cohesive customer experience. Additionally, while SMS supports basic multimedia through MMS, the options are far more limited compared to OTT messaging.

Interactive Features and Engagement

Enhanced Interactivity (OTT Messaging): OTT messaging platforms often include features that enhance interactivity, such as clickable buttons, quick replies, and in-app actions. These tools allow businesses to create more engaging and interactive customer experiences, such as guided product recommendations or dynamic customer support flows.
Limited Interaction (SMS): SMS, by its nature, is more limited in terms of interactivity. While it’s possible to include links that direct customers to a website or app, the interaction remains largely one-way, with fewer opportunities for real-time engagement or complex interactions. This can be a disadvantage for businesses looking to create more immersive customer experiences.

When to Use OTT Messaging vs. SMS

Choosing the Right Platform

Deciding whether to use OTT messaging or SMS depends on your business needs and customer preferences. If your target audience is more active on apps like WhatsApp or Facebook Messenger, OTT might be the better choice. However, for reaching a broader audience quickly, SMS remains a reliable option.

Audience Analysis: Understand where your customers are most active.
Message Type: Choose based on the content and format of your message.
Reach: Consider the accessibility of each platform for your target audience.

Examples of Use Cases

There are various scenarios where OTT messaging shines. For instance, if you’re looking to engage customers with personalized shopping advice or provide after-sale customer service, OTT offers the flexibility and tools needed for such tasks. On the other hand, SMS might be better suited for urgent notifications or reaching customers in areas with limited internet access.

Personalized Engagement: OTT for detailed, interactive conversations.
Urgent Notifications: SMS for quick, important alerts.
Customer Support: OTT for ongoing, trackable support interactions.

Combining OTT and SMS for a Comprehensive Strategy

Many businesses are now combining both OTT messaging and SMS to create a well-rounded communication strategy. By doing so, you can cover all bases, ensuring that you reach your customers in the most effective way possible, no matter their preferred platform.

Multi-Channel Approach: Use both OTT and SMS to maximize reach.
Strategic Integration: Tailor your approach based on the situation and audience.
Enhanced Communication: Offer customers multiple ways to connect with your business.

This integrated approach ensures that your business remains accessible and responsive to all customer needs.

How to Get Started with OTT Messaging

Setting Up OTT Messaging

Getting started with OTT messaging is straightforward. Begin by selecting the platforms that align with your customer base, such as WhatsApp or Facebook Messenger. Next, set up your business accounts and configure the necessary settings to ensure smooth operation.

Platform Selection: Choose OTT platforms based on customer usage.
Account Setup: Create and configure your business accounts.
Integration: Link OTT platforms with your existing communication tools.

Best Practices for Using OTT Messaging

To get the most out of OTT messaging, follow best practices such as responding promptly to customer inquiries, personalizing your messages, and regularly reviewing your communication strategy to ensure it meets your business goals.

Prompt Responses: Ensure timely replies to customer messages.
Personalization: Tailor messages to individual customer needs.
Regular Review: Continually assess and adjust your strategy.

These practices will help you build stronger customer relationships and enhance overall communication effectiveness.

Tools and Platforms to Consider for OTT Messaging

When it comes to OTT messaging, selecting the right tools and platforms can significantly enhance your communication strategy. Here are seven tools and platforms that can help you manage, automate, and optimize your OTT messaging efforts.

MessageMedia

Overview:
MessageMedia is a versatile platform that provides businesses with tools to manage their OTT messaging across various channels, including WhatsApp Business, SMS, and more. The platform is designed to simplify communication by offering features like bulk messaging, message automation, and detailed analytics.

Key Features:

WhatsApp Business Integration: Manage all your WhatsApp communications through a single interface. MessageMedia allows businesses to handle customer queries, send promotional messages, and track engagement directly from the platform.
Bulk Messaging: Easily send messages to large groups of customers at once, making it ideal for marketing campaigns or mass notifications.
Message Scheduling: Schedule messages to be sent at optimal times, ensuring your communications are timely and relevant.

Benefits:

Centralized Management: All your messaging channels can be managed from one platform, reducing complexity and saving time.
Scalability: Whether you’re a small business or a large enterprise, MessageMedia can scale to meet your needs.
Detailed Analytics: Track the performance of your messages, including open rates, click-through rates, and customer responses, to refine your strategy.

Use Case:

A retail business uses MessageMedia to send out promotional WhatsApp messages to its customer base, offering discounts and updates on new arrivals, and then tracks customer engagement through the platform’s analytics tools.

Twilio

Overview:
Twilio is a cloud communications platform that provides businesses with a suite of tools for messaging, voice, and video communications. Twilio’s APIs make it easy to integrate OTT messaging into your existing applications and workflows.

Key Features:

Programmable Messaging: Twilio’s API allows you to send and receive messages across various OTT channels, including WhatsApp, Facebook Messenger, and more.
Customizable Workflows: Use Twilio’s tools to build custom messaging workflows that suit your business needs, whether it’s for customer support, marketing, or notifications.
Global Reach: With Twilio, you can send messages to customers around the world, making it an ideal solution for businesses with a global presence.

Benefits:

Flexibility: Twilio’s API-based approach allows for deep customization, making it suitable for businesses with unique communication needs.
Reliability: Twilio is known for its robust infrastructure, ensuring that your messages are delivered promptly and reliably.
Comprehensive Support: Twilio offers extensive documentation and support, helping businesses to implement and optimize their messaging strategies.

Use Case:

An e-commerce platform integrates Twilio’s messaging API to send order confirmations, shipping updates, and customer support messages through WhatsApp, providing a seamless communication experience for customers.

WhatsApp Business API

Overview:
The WhatsApp Business API is designed for medium to large businesses looking to communicate with customers at scale. It allows businesses to integrate WhatsApp messaging into their customer engagement strategies, offering tools for automation, customer support, and marketing.

Key Features:

Automated Messaging: Set up automated responses to common customer inquiries, reducing the need for manual intervention and speeding up response times.
Rich Media Support: Send images, videos, documents, and more, making your communications more engaging and informative.
Interactive Messaging: Use features like quick replies and buttons to create interactive conversations that guide customers through their journey.

Benefits:

Wide Adoption: With over 2 billion users, WhatsApp offers an unparalleled reach, making it an essential tool for businesses looking to engage with a broad audience.
Secure Communication: WhatsApp’s end-to-end encryption ensures that all messages are secure, protecting customer privacy.
Scalable: The API is designed to handle high volumes of messages, making it suitable for businesses of all sizes.

Use Case:

A financial services company uses the WhatsApp Business API to provide customers with real-time updates on their account status, send alerts about suspicious activity, and offer customer support through automated messaging.

Zendesk Sunshine Conversations

Overview:
Zendesk Sunshine Conversations is a messaging platform that allows businesses to integrate OTT messaging into their customer service workflows. It provides a unified interface for managing conversations across multiple channels, including WhatsApp, Facebook Messenger, and more.

Key Features:

Unified Messaging: Manage all customer interactions from a single platform, regardless of the channel they originate from.
Custom Bots: Build and deploy custom chatbots that can handle common customer inquiries, freeing up your support team to focus on more complex issues.
CRM Integration: Integrate Sunshine Conversations with your existing CRM system to provide agents with a complete view of customer interactions and history.

Benefits:

Omnichannel Support: Provide a consistent customer experience across all messaging channels, ensuring that customers receive the same level of service no matter how they choose to contact you.
Increased Efficiency: Automate repetitive tasks and streamline customer interactions, improving response times and customer satisfaction.
Data-Driven Insights: Use the platform’s analytics tools to gain insights into customer behavior and optimize your messaging strategy.

Use Case:

A telecommunications company uses Zendesk Sunshine Conversations to manage customer support requests from multiple channels, including WhatsApp and Facebook Messenger, ensuring that all inquiries are handled promptly and efficiently.

Intercom

Overview:
Intercom is a customer communication platform that offers a range of tools for messaging, including OTT messaging, live chat, and email. It’s designed to help businesses engage with customers throughout their journey, from initial contact to ongoing support.

Key Features:

In-App Messaging: Communicate with customers directly within your app, providing real-time support and engagement.
Automated Workflows: Use automation to send targeted messages based on customer behavior, such as abandoned carts or inactivity.
Customer Segmentation: Segment your audience to deliver personalized messages that resonate with different customer groups.

Benefits:

Real-Time Engagement: Interact with customers in real-time, providing instant support and information.
Personalized Communication: Tailor your messages to individual customers, improving engagement and conversion rates.
Comprehensive Integration: Intercom integrates with a wide range of tools and platforms, making it easy to incorporate into your existing workflows.

Use Case:

A SaaS company uses Intercom to onboard new users, sending personalized messages and tutorials through in-app messaging to guide them through the setup process and encourage product adoption.

Freshchat

Overview:
Freshchat, part of the Freshworks suite, is a modern messaging software designed for customer engagement. It supports OTT messaging channels like WhatsApp, Facebook Messenger, and Apple Business Chat, offering businesses a powerful tool for real-time communication.

Key Features:

Multichannel Messaging: Manage conversations across multiple OTT messaging platforms from a single dashboard.
AI-Powered Chatbots: Deploy AI-driven chatbots to handle common queries, reducing the load on your customer support team.
Proactive Messaging: Send proactive messages based on user behavior, such as reminders, promotions, or support check-ins.

Benefits:

Scalable Solution: Freshchat is designed to scale with your business, making it suitable for companies of all sizes.
Enhanced Productivity: Automate routine tasks and focus on high-value interactions with your customers.
Seamless Integration: Integrate Freshchat with your CRM, helpdesk, or other business tools to streamline your customer communication processes.

Use Case:

An online retailer uses Freshchat to manage customer inquiries across WhatsApp and Facebook Messenger, providing real-time support and sending personalized promotions based on customer activity.

Infobip

Overview:
Infobip is a global communications platform that provides businesses with tools for messaging, voice, and video communications. It offers a robust set of features for OTT messaging, making it a comprehensive solution for businesses looking to enhance their customer communication strategies.

Key Features:

Omnichannel Messaging: Communicate with customers across multiple channels, including WhatsApp, Viber, Facebook Messenger, and more.
Rich Media Messaging: Send interactive messages that include images, videos, and other rich media elements to engage customers more effectively.
Advanced Analytics: Gain insights into message delivery, open rates, and customer engagement to optimize your communication strategy.

Benefits:

Global Reach: Infobip’s platform supports communication with customers in over 190 countries, making it ideal for businesses with an international presence.
Customizable Solutions: Infobip offers customizable solutions tailored to the specific needs of your business, whether it’s for marketing, customer support, or transactional messaging.
Secure and Reliable: Infobip provides secure, reliable messaging services with high delivery rates, ensuring your messages reach their intended recipients.

Use Case:

A travel company uses Infobip to send booking confirmations, travel updates, and customer support messages through WhatsApp and Viber, providing a seamless communication experience for travelers around the world.

Conclusion

OTT messaging represents a powerful tool for modern businesses, allowing for personalized, flexible, and cost-effective communication with customers. By understanding what OTT messaging is, how it works, and its advantages over SMS, businesses can create a robust communication strategy that meets customers where they are.

As the digital landscape continues to evolve, integrating OTT messaging into your customer engagement toolkit is not just an option but a necessity.