The Rise of OTT Messaging is Disrupting Consumer Engagement and Content Distribution

By Colin Jeavons, CEO and Founder at NTENT

OTT messaging services such as WhatsApp, Viber or BBM messenger operate over an Internet connection, giving users access to free and fast communication.  Use has exploded in popularity , officially taking over SMS messages as the primary way to communicate.  According to the GSMA, over 50 billion app-based messages will be sent every day this year compared to just 21 billion “regular” SMS text messages, with the average user sending more than 36 messages via OTT apps daily.

This disruption is presenting new revenue models on mobile, which have huge implications for brands and content providers. From a content discovery distribution standpoint, this can be frightening because consumers are opting for a direct one-to-one or one-to-many communication platform, injected primarily with the content they’ve elected to share. So what’s in the foreseeable future for advertisers? All signs point to strategic partnering with OTT messaging providers to reach consumers when they are most engaged – it’s clear that only using closed destination models, i.e. SMS, just won’t cut it for the future.

While advertisers may jump at the opportunity to advertise via OTT messaging, it shouldn’t be disruptive in any way to the user. Content that gets in the way of messaging, rather than assisting it (or at the very least being relevant), will irritate users. An example of a partnership that understands this concept very well is the one between cartoonists in Korea and the game-based OTT messaging platform, KakaoTalk. They’ve partnered to provide branded badges and product-related emoticons for consumers to share that clearly displays the brand’s logos, but offers entertainment value to the user. KakaoTalk and the cartoonists employ a model where revenues are split based on user engagement (i.e. usage of sponsored emoticons), meaning both sides win as users engage with and enjoy using the extra content.

Integrating new technologies into distribution models will be key to getting content in front of the right audience. Push notifications, recommendation engines, and real-time suggestions based on conversations are quickly becoming methods of distribution for reaching consumers in the most engaged environments. If you are a content creator wishing to reach consumers in a meaningful way, you must deliver messaging in a relevant manner to consumers in their channel of choice. It’s all about offering useful and personalized content. Once you’ve reached them in the right place, effectively monetizing that content and exposing them to your brand becomes much easier and lucrative.

Many companies are already well positioned for this new trend – Facebook, WeChat, Alibaba/Tango, Kakao, Line, Kik and BBM – are actively adjusting their models. The question now lies in what needs to be taken into consideration today when thinking about future monetization. A successful OTT content distribution campaign will be one that consumers ultimately enjoy while encouraging advertisers to think outside the box. It’s all about enhancing the messaging experience with relevant content and driving value to the user. In a world of big data and the Internet of Things, it’s not about what users may want, it’s what they can discover.

Read More - The Rise of OTT Messaging is Disrupting Consumer Engagement and Content Distribution