What Is OTT Messaging (Over-the-Top Messaging)?

Also called: Chat app messaging, App-based messaging

Related problems: Customers in some countries prefer chat apps over text messages; Reaching international customers without high SMS rates; Business messages on chat apps getting rejected or limited by the platform; Managing conversations across several messaging channels

Over-the-Top messaging (OTT messaging) is text, media and chat sent through internet-based apps instead of a mobile carrier’s text messaging service. The messages travel “over the top” of the network as ordinary data, so they work over mobile data or Wi-Fi and are controlled by the app’s operator, not the carrier. Consumer chat apps such as WhatsApp or Viber are common examples. For businesses, OTT messaging usually means using a chat platform’s business messaging service to send notifications and hold customer service conversations on the apps customers already use.

At a glance

  • OTT messaging runs over internet data inside an app, not over the carrier’s SMS service.
  • Each platform sets its own rules for business accounts, including verification, message templates, opt-in and pricing.
  • Businesses usually connect through the platform’s business API, often by way of a CPaaS or contact center provider.
  • Reach depends on which apps customers in a given country use; SMS often remains the fallback.
  • Platform rules, pricing and availability vary by app and country and change over time.

What problem it solves

In many countries, customers use chat apps far more than carrier text messages, and international SMS can be expensive or unreliable. A business that wants to reach those customers on the channel they actually read, and let them reply in the same place, needs a way to send and receive messages on those apps.

OTT business messaging also supports richer conversations than SMS: images, documents, buttons, quick replies, product lists and longer customer service threads. Many businesses use it to move support conversations from phone calls into asynchronous chat that agents can handle alongside other channels.

How it works

Business accounts and verification. A business registers with the platform, usually through the platform directly or an approved partner. Most platforms require some form of business verification and a display name or profile that customers see.

Business-initiated and customer-initiated messages. Platforms commonly treat these differently. Messages a business starts, such as notifications or reminders, often have to use pre-approved templates and go to customers who have opted in. When a customer messages first, many platforms open a service window during which the business can reply more freely; the length and rules of that window vary by platform.

Connecting your systems. Your application or contact center connects to the platform’s business API, directly or through a CPaaS or contact center as a service (CCaaS) provider. You send messages through the API, and inbound messages and delivery events usually arrive as webhooks.

Pricing. Each platform sets its own model. Common approaches charge per message or per conversation, with rates that differ by country and by message category, such as marketing, utility or service. Some customer service replies may cost little or nothing. Platforms revise these models, so check current terms.

Fallback and orchestration. Because not every customer uses a given app, many businesses send on the preferred OTT channel first and fall back to SMS or MMS if the message can’t be delivered. CPaaS providers often offer this channel switching as a feature.

Privacy and security. Platforms differ in how they encrypt messages and handle data, and messages may be processed by your provider and the platform’s business infrastructure as well as the app. Data protection laws such as the GDPR may apply depending on where customers are. Review the platform’s terms and data handling with your privacy team and counsel.

For buying guidance, see our communications platform as a service solution page.

When it matters for buyers

  • Serving customers abroad. In markets where a chat app is the default way to communicate, OTT messaging may reach more customers than SMS.
  • Customer service. Moving conversations to chat apps lets customers reply at their own pace and agents handle several conversations at once.
  • Rich content. Order updates with images, documents or buttons can work better on OTT channels than plain text.
  • Consent and policy reviews. Business messaging on chat apps comes with platform policies on opt-in, templates and content, on top of consent and marketing laws that vary by country. Accounts that break policies can be limited or suspended.
  • Channel strategy. Choosing between SMS, OTT apps and RCS depends on where your customers are and what each channel supports there.

Questions to ask vendors

  • Which OTT platforms and countries do you support, and are you an approved partner for each?
  • How do you handle business verification, display names and message template approval, and how long does it take?
  • How are messages priced for each platform and country, and how are platform fees passed through?
  • Can we fall back automatically to SMS when a message isn’t delivered on an app?
  • How do inbound messages reach our contact center, help desk or CRM?
  • What data do you store from these conversations, where, and for how long?
  • How do you help us stay within each platform’s messaging and opt-in policies?

How it differs from RCS

Rich Communication Services (RCS) and OTT messaging can look similar to customers: both support branding, images and buttons. The difference is who runs the channel. RCS is a carrier messaging standard that appears in the phone’s built-in messaging app, where supported by the device and carrier, and usually falls back to SMS. OTT messaging runs in a separate app operated by its own company, which sets its own business rules and pricing, and reaches only people who use that app. Many businesses use both, chosen by country and customer preference.

Frequently Asked Questions

Is OTT messaging cheaper than SMS?
Sometimes. In some countries, business messaging on chat apps costs less than international SMS, and in others it costs more. Platforms set their own pricing models, which can be per message or per conversation and vary by country and message type, and they change these models from time to time. Compare current rates for your actual traffic.
Can we send marketing messages on chat apps?
Often, within each platform's rules. Many platforms require the customer's opt-in, approved message templates for business-initiated messages and a way to opt out, and some limit promotional content or volumes. Consent and marketing laws also apply. Check the platform's current policies and confirm your program with counsel.
Do customers need to have the app installed?
Yes. OTT messages reach people who have the app and an internet connection. That is why many businesses keep SMS as a fallback for customers who don't use the app or can't be reached on it.
How do we connect a chat app to our contact center or CRM?
Usually through the platform's business API, either directly or through a CPaaS or contact center provider that is an approved partner. Inbound messages typically arrive at your systems as webhooks, and agents answer from the contact center or help desk interface.

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