Over The Top (OTT) messaging apps are set to maintain their dominance in the conversational commerce sector, despite an anticipated decline in global market share from 53% in 2024 to 45% in 2028, according to a new study by Juniper Research. The report suggests that the advanced capabilities of OTT messaging apps, such as interactive calls to action and rich media, will continue to drive much of the spend in this sector.

OTT business messaging, which allows enterprises to communicate with customers via third-party messaging applications, is touted for its ability to quickly integrate new technologies. This includes AI-based personalisation, which can provide cross-selling and upselling opportunities, thereby enhancing the customer experience and boosting revenue.

The study also predicts that OTT messaging apps will be utilised as part of an omnichannel marketing strategy in high-spending industries such as retail. This is likely due to the versatility and reach of these platforms, which allow businesses to engage with customers on their preferred channels.

However, the report also highlights the potential of Rich Communications Services (RCS) in the conversational commerce landscape. RCS commerce spend is forecast to grow by more than 3,500% over the next five years, from $350 million in 2023 to an impressive $12 billion in 2028. This growth is expected to be driven by the roll-out of RCS-capable devices, increased operator support, and wider consumer availability.

RCS offers a range of features, including brand verification, branded messaging, and rich carousels, which could enable operators to compete with leading OTT messaging apps. Juniper suggests the improved security and capabilities of RCS may also appeal to businesses and consumers alike, potentially shaking up the conversational commerce sector.