SMS marketing is the fastest and most affordable method for companies worldwide to connect with their clients. Experts project that by 2025, SMS marketing’s market value will reach $12.6 billion, growing at a 20.3% CAGR.
One of the notable reasons for the growth in SMS marketing is the New AI tools that have emerged to make the process more effective. Here are the benefits of SMS marketing, the effectiveness of SMS campaigns, facts, statistics, and the most recent developments in the sector.
SMS or Short Messaging Service Marketing is the use of text messages as a communication medium to disperse advertising campaigns and time-to-time notifications. It can be used in various ways, such as short-term sales and promotion for retail or e-commerce companies, customers’ orders or urgent event updates, appointment reminders, and internal alerts. 
But note that only Individuals who give full permission receive SMS marketing messages from firms. The FCC has declared it unlawful to transmit unsolicited text messages under the CAN-SPAM Act. Sending any message that can’t be easily interpreted as an advertisement is prohibited.
According to Statista, $327.1 billion is spent on SMS marketing globally, with the US being the largest market. In 2023, this amount was projected to increase to $339 billion. By 2024, the market size is anticipated to double.
(Source: Statista)
How big is the market for SMS marketing? Despite having only 4.5% of the global population, America accounts for over one-fifth of all mobile capital spending. Currently, the hotel, cafeteria, transportation industries, and insurance in the United States have lower rates than the wireless sector.
(Source: CTIA)
Text messaging is one of the most popular forms of communication, with over 23 billion texts being sent daily. Every second, 270,000 readers are sent, with firms using them to promote to millions of people. In 2020, SMS surpassed voice calls as one of the most popular methods of communication, and its market share keeps exploding yearly.
(Source: Forbes)
Americans used their wireless gadgets for chatting, gaming, surfing, and calling like never before in 2019. Experts estimated 2.1 trillion texts were sent throughout 2019, increasing the number by 52 billion from 2018 data. Additionally, phone conversation time increased by 30%.
(Source: CTIA)
Over 6 billion people have phone access, and an estimated 5 billion send and receive SMS messages daily. This means 33% more people can send a text than they use indoor plumbing. That’s nearly 65% of the world’s population.
(Source: Luisazhou)
More than 8 of 10 Americans send and receive text messages. Over 292 million people in total! This demonstrates that, when compared to other channels, SMS marketing may be able to reach some of the largest groups.
(Source: Infocision)
Over half (61%) of marketers don’t currently put SMS marketing in their business plans. However, 73% of companies intend to increase their text message marketing budgets shortly.
(Source: SlickText)
A few brands that use SMS marketing don’t have strategies. About 65% of brands acknowledge that they lack a formal plan. Businesses wishing to experiment with SMS marketing have a great chance to do so because of this gap, especially since they are likely to outperform their rivals.
(Source: SlickText)
According to experts, from 2019 to 2025, the US SMS marketing market is expected to develop at a compound annual growth rate (CAGR) of 20.3%. It will be worth $12.6 billion in 2025. New AI-enabled solutions that make SMS services more straightforward and efficient for companies, as well as the expansion of SMS marketing into new industries, are partly to blame for this rapid increase.
(Source: Grand View Research)
Most brands that use SMS marketing are retail businesses (23%), but the media and entertainment industry is expanding. Media and entertainment messaging will be used to advertise movies, TV shows, events, and more from 2019 to 2025, with a CAGR of 22% predicted.
(Source: Grand View Research)
Large businesses do the overwhelming bulk (more than 65%) of SMS marketing. As an illustration, Subway started using SMS marketing in 2015 and acquired over 5 million users by 2018. However, surveys indicate that small and medium-sized businesses (SMEs) are quickly embracing SMS marketing showing a 23% and more CAGR.
(Source: Grand View Research)
SMS marketing is frequently used to distribute coupons, event information, and other perks in their SMS loyalty programs. A third of marketers anticipate introducing mobile loyalty programs sometime in 2019 will be a priority.
(Source: SlickText)
According to a survey, 9 of 10 consumers reply to texts within a half-hour (30 minutes). With a lead conversion rate of 15% compared to sales calls of 1%, SMS is far more effective.
(Source: EZ Texting)
Up to 45% of recipients of SMS marketing messages respond, enabling businesses to engage customers in a real-time dialogue. A less than 20% open rate is typical for email marketing efforts (more on that later).
(Source: Crazy Egg)
Over 51% of customers make direct purchases after receiving an advertisement, a discount voucher, or a QR code from firms. Images and other media in SMS marketing messages increase conversion rates. As long as the SMS’s content is pertinent to them, 33% of consumers don’t mind the SMS’s nature.
(Source: Attentive Mobile Consumer Report)
Research shows roughly 96% of SMS marketers claimed it increased their Revenue. Conversely, nearly 60% of respondents claimed that texting has “significantly” or “overwhelmingly” enhanced revenue generating.
(Source: Attentive Mobile)
A study revealed that SMS-sent vouchers are used 10 times more frequently. This high conversion rate was calculated based on a survey showing that 32% of SMS recipients reacted to offers.
(Source: Adobe)
A provider of SMS marketing services, Attentive Mobile, stated that an average of $71 is earned from its users in the retail and eCommerce sectors for every dollar invested in the SMS marketing program. With this, SMS generates an average of 20.5% of all internet revenue.
(Source: Attentive Mobile)
PWC surveyed firms of all sizes and sectors around the world. According to their findings, 47 percent of the study respondents used mobile messaging. SMS marketing strategies are used by 39% of SMEs and 58% of large businesses.
(Source: PWC Esendex Report)
SMS marketing is used by about 20% of real estate businesses to connect with their customers. Agriculture accounts for (15.9%), entertainment accounts for (15.4%), building (14%), energy (13%), and aviation (12.3%), which are inclusive among the top text-using industries.
(Source: SMS Comparison)
According to a PWC report, businesses in all sectors have boosted their spending on SMS marketing over the past 3 years. Nearly 50% of companies involved in finance have raised their spending, along with 42% of the retail sector, 45% of the IT/communications sector, 34% of the professional/administrative sector, and 36% of the industrial sector.
(Source: PWC Esendex Report)
Why do companies opt for SMS marketing? Due to SMS’s effectiveness, one-quarter of respondents said they include it in their marketing plans. It is utilized by 22% for its simplicity, 21% for its affordability, 18% for its broad reach, and 15% for its security.
(Source: PWC Esendex Report)
Worldwide companies like Coca-Cola use SMS marketing and spend quite a lot on it. These big businesses utilize SMS marketing because they know that smartphone users touch their phones more than 2,617 times a day, and 85% of people prefer SMS for customer care.
(Source: SMS Global)
More than 91% of customers prefer receiving SMS texts from companies. Almost 56% of people said they often receive SMS from companies, and nearly 25% said they would subscribe to the right brand. Customers who aren’t interested in any kind of communication means are below 10%.
(Source: Attentive Mobile Consumer Report)
How do customers feel when they get a text message from a business? 64% of people say they are generally intrigued by brand messaging. Further, 27% were joyful, 23% were thrilled, 17% were anxious, 17% and 15% were annoyed.
(Source: EZ Texting)
Most SMS users prefer to hear from brands several times per week. More than 18% said they’re happy to get messages every day. Nearly 40% are satisfied with receiving texts 2-3 times per week, but over 42% prefer to receive them 4-6 times per month.
(Source: Attentive Mobile Consumer Report)
Nearly 60% of clients said texting is the preferred method of brand communication. Customers also stated that shipping/delivery updates (48%), discounts (29%), and appointment reminders (64%) were the most valuable text messages they got from businesses.
(Source: Business Wire)
This percentage increased from 2021 to 2022 because just 47% of respondents did the same thing in 2016. In 2022, 50% of survey participants claimed that “texting is the fastest way to reach them,” and 43% concurred that “texting is a more efficient way to communicate.”
(Source: EZ Texting)
According to a study of US-based shops, 64% of their customers prefer texting to voice calls, and 81% find it frustrating to use the phone or a computer to contact a business. Because of this, 77% of consumers think favorably of brands that keep them in the loop via SMS.
(Source: Mobile Marketing Watch)
Nine out of ten consumers claim to have benefited from participating in SMS loyalty programs. 90% of consumers prefer text over phone calls or emails, while another 75% of customers want to receive exclusive offers by SMS.
(Source: SMS Comparison)
Marketers find phone numbers and opt-in consent 10 times more important than email addresses. 100,000 SMS subscribers are equivalent to 1,000,000 email addresses, respectively.
(Source: Mobile Marketing Watch)
The average click-through rate (CTR) for marketing text messages is above 19.3%. Since MailChimp’s typical email marketing, CTR has only 4.2%, SMS is 15% higher than email.
(Source: Text Republic)
According to recent statistics, text messages have an average open rate of up to 95%. According to research, 82% of text message recipients read every message. However, Emails across all industries have an average open rate of 21.33%.
(Source: Shift, Mailchimp)
According to a study, 65% of respondents get up to 20 promotional emails daily. 5% of respondents reported receiving daily brand texts in the same range (11–20). Only 39% of SMS consumers receive less than one text message daily from a brand.
(Source: EZ Texting)
Close to 5 out of every 100 SMS marketing subscribers opt out. SMS marketing has a far greater retention rate than email marketing, which is impressive given that more than 20% of email users unsubscribe yearly.
(Source: Text Request)
SMS marketing outperforms conventional email marketing in many ways but also improves it. According to a study, the email’s open rates were raised by 20–30% with the help of the follow-up text asking, “Have you read our email?”
(Source: Adobe)
SMS marketing inspires customers to respond and participate with brands, not just share the news. Compared to just 8% for emails, SMS texts have a response rate of 45%. A debt collection company, time warner raised late bill collections by 49% after employing SMS techniques.
(Source: The SMS Global)
SMS marketing is a tested and proven method for delivering customized, targeted messages to clients. When compared to email messages, it has a greater open rate. Also, SMS messages are more likely to prompt a response from the recipient. Moreover, companies can use SMS to enhance engagement, boost sales, and build closer client bonds.
In 2021, the value of the SMS marketing market was $64489.20 million. However, the worldwide Short Message Service (SMS) Marketing Market has grown big as it’s predicted to hit $84904.89 million in 2027 with a CAGR of 3.8 %.
The SMS marketing market’s success rate is 98 %, which is high compared to email messages, with an average success rate of 20%. The reason is because SMS is more effective and prompts replies from clients.
Text messages statistics showed that over 85 SMS texts are sent and received by adults under 45 years daily. Also, a regular client sends 3 SMS per hour, 72 SMS per day.
Jeff Beckman is a content writer and copywriter with 5+ years of experience in technology. He provides enjoyable, educational content through his experience working for various publications.
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