Over-the-top (OTT) messaging applications, such as WhatsApp and Snapchat, will see adoption grow from 2.3 billion users in 2016 to 4.2 billion by 2021, representing a growth of over 12% compound annual growth rate (CAGR).
This is according to new research from Juniper Research titled, Mobile Messaging: Operator Strategies & Vendor Opportunities 2017-2021, which anticipates that OTT players will reposition their messaging platforms as customer relationship management (CRM) tools. OTT players will begin focusing their strategies around the development and provision of artificial intelligence (AI) chatbot tools. Juniper adds service providers must view the introduction of chatbots as an opportunity to expand their in-app offerings, beyond a mere messaging service.
By leveraging AI technology, these OTT apps will offer a high value proposition by creating a new level of consumer engagement. For end-customers, these platforms offer an attractive means of engagement by allowing for greater consumer flexibility and minimising call wait times, reveals the report.
Research author Sam Barker says: "Successful chatbots will increase audience engagement, maintain customer satisfaction and generate repeat business. OTT players must ensure they support these chatbots in their applications, or risk user churn to competitors."
Chatbot launches on OTT messaging apps will provide a wealth of opportunities for the eRetail and banking sector over the next five years. Frequently used services such as balance checking and regular purchases will be some of the early uses, according to Juniper. The report forecasts that the number of chatbots on mobile devices will exceed 2 billion globally by 2021, as western players aim to emulate the success of chatbots in China.
Although the development of international OTT players in Africa remains lower than on other continents, the continent is the major source of future growth, says a Wavestone report. They are investing in the continent directly (Facebook and Netflix opened offices in SA in 2015) or in partnership with telecom operators: Vodacom with Naspers (SA, 2015) and WhatsApp with Airtel (Nigeria, 2014), it adds.
While they target all African countries, SA is the preferred point of entry for OTT players because of its Anglo-Saxon culture and higher level of maturity (developed telecom networks and a higher per-capita gross domestic product), adds the report.
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