SMS marketing enables sending promotional or informational text messages to a list of opted-in subscribers. With mobile penetration nearing 97% globally, it harnesses the power of smartphones for advertising.
This guide will explore all key SMS marketing trends, including adoption, open rates, conversion benchmarks and consumer attitudes. With insights for building highly targeted campaigns optimized for lightning-fast attention and response on the go, let’s dive in.
What is SMS Marketing?
SMS stands for “short message service”. SMS marketing means leveraging text messaging to broadcast messages or run targeted campaigns.
It allows reaching customers right on their mobile phones with valuable, real-time content. Use cases include:
- Promotions: Send coupon codes or discounts to drive sales
- Alerts: Notify customers of new products, features or events
- Surveys: Gather quick customer feedback via SMS polls or questionnaires
- Reminders: Reduce no-shows by confirming appointments or reminders
- Customer Support: Many brands offer SMS support for convenience
With clever SMS creativity and targeting, the possibilities are truly endless.
Key SMS Marketing Statistics & Trends for 2024
- Industry Size: The US SMS marketing industry was worth $3.5 billion in 2018. This could rise 20% from 2019 to 2025 (Source: MobileMonkey)
- Engagement: Over 98% of SMS messages are read, compared to only 20-30% of emails (Source: Adobe)
- Adoption: 80%+ consumers texted a business in 2020, showing rising engagement (Source: eMarketer)
- Performance: SMS yields 6-8% higher conversion rates over email marketing on average (Source: StartupBonsai)
As more businesses adopt SMS strategies, its potential continues growing exponentially across metrics from opens to conversions.
Half of Consumers Now Welcome SMS Marketing
Early SMS efforts faced mass consumer distrust, viewed as intrusive spam more than useful engagement.
But attitudes are shifting as brands personalize and reward subscribers. Almost 50% of consumers now welcome SMS marketing from trusted businesses, happily opting in according to Podium’s research.
In particular, millennials and Gen Z audiences priortize mobile messaging. They grew up texting, feeling right at home with SMS dialogues vs. one-way email blasts.
Open & Response Rates Destroy Email
We all grab our phones instantly on hearing that recognizable SMS notification chime.
This translates into staggering 90%+ open rates within 3 minutes for text messages, dwarfing email.
Plus SMS pulls in faster reactions, with average response times around 90 seconds according to mobile marketing platform SimpleTexting.
Contrast that to the 90 minutes needed to reply to the average commercial email.
Such lightning user engagement explains why two-way SMS conversations often feel more productive than batched emails.
Performance Benchmarks Prove the Power
Beyond raw open metrics, SMS consistently converts at higher rates across metrics from CTR to redemptions.
- The average clickthrough rate is 10.63% for SMS ads vs. 2-3% for display and email (Sources: Rebrandly, Wordstream)
- Conversion benchmarks for SMS hover around 5-8%, crushing email’s 1-2% (Sources: MobileMonkey, SmallBizGenius)
- Redemption rates for SMS coupons run 10X higher than other promos (Source: SimpleTexting)
With such stellar performance, SMS complements digital marketing strategies extremely well.
Top Industries Using SMS Campaigns
The retail and ecommerce industries stay ahead adopting SMS tactics with location signals, mobile coupons and order updates.
Service businesses like healthcare, beauty and hospitality leverage SMS appointment reminders and confirmations to reduce no-shows.
And the education sector frequently uses emergency SMS notifications along with courting alumni donations.
Strategic Role Within Marketing Tech Stacks
Savvy marketers now integrate SMS across the martech stack to amplify results.
Targeted SMS flows combined with email nurturing journeys boost conversions. Location-based texts support geofencing campaigns. And integrating SMS opt-ins on landing pages and ads multiply touchpoints.
According to Salesforce research, adding SMS to email efforts lifts clickthrough rates 3-5X and purchases 2-3X over email alone.
Why SMS Marketing Outperforms Other Channels
What advantages enable SMS to engage and convert customers so effectively?
1. Unrivaled Delivery & Open Rates
While emails often end up in spammers’ junk folders unread, SMS reliably hits inboxes with impressive delivery rates.
Text messages boast 95-98% successful delivery on average. And exceptional 98%+ open rates mean virtually every SMS sent gets viewed.
Contrast that to email benchmark open rates languishing around 10-30% for commercial messages.
Such reliable visibility gives SMS a unique edge for time-sensitive alerts or promotions.
2. Immediate User Attention
We’re tethered to phones like appendages these days. So texts redirect focus fast, being read within an average of 90 seconds of receiving that audible notification chime.
Even late-night texts get swift attention compared to emails only checked a few times daily.
This allows driving urgent action effectively, from limited-time coupons to reservation confirmations.
3. Two-Way Conversations, Not Just Blasts
Emails support one-way static blasts alone. But SMS facilitates real dialogues, nurturing personal connections with customers.
Engaged subscribers happily reply to texts surveys, polls and feedback requests. Or customers can text help keywords to trigger automated support responses.
Such two-way messaging helps build meaningful relationships beyond faceless blasts.
4. Flexible Integration Across Technology Stacks
While email journeys are complex, SMS neatly integrates across most martech stacks.
Sending notification texts when users complete important actions helps reinforce behaviors. Or adding SMS opt-ins on landing pages and ads provides a handy multi-channel touchpoint.
5. Measurable Real-Time Analytics
Robust analytics provide granular SMS metrics from contacts reached, open and clickthrough rates down to redemption figures on text coupons.
Compare campaign results over time or against other channels using historical reports. Or quickly assess new SMS creatives with A/B testing data.
SMS Marketing Best Practices
Ready to launch SMS efforts? Here are best practices for executing text message campaigns effectively:
Research Opt-In Rules & Regulations
The CAN-SPAM Act and TCPA guidelines govern SMS communications for US businesses. Master opt-in regulations before planning messaging.
Create Double Opt-In Signup Flows
Collect opt-ins explicitly, using checkboxes not just fine print. And confirm subscriptions via a verification text sent to users signing up. These double opt-in mechanisms help ensure informed consent.
Personalize Messages
Avoid blasting bulk coupon codes. Instead, segment users by past purchases and tailor unique offers or crossover recommendations based on buying habits.
Build Value-Added Alerts & Updates
Rather than constant promos, focus on helpful updates customers want like order confirmations, shipping alerts, new features or status changes.
Make Messages Scannable
Craft SMS copy for small screens optimizing scannability. Share the most vital info upfront. And make strong calls to actions prominent concluding each message.
Integrate and Automate Workflows
Connect your SMS tool to CRM and marketing automation platforms via APIs. Then trigger customized SMS alerts when users complete key actions, whether booking a table or abandoning carts.
Continuously Optimize Campaigns
Experiment with timing, frequency caps, segmenting and creative variants using A/B testing data. Then refine approaches based on open, click and conversion rate lift achieved.
The Future of SMS Marketing
Where might SMS marketing head next as more marketers embrace text messaging?
- Predictive engagement: AI and analytics will help predict optimal timing for appointment or renewal reminders based on past behaviors
- Location-based targeting: Geofencing campaigns can activate time- or place-based SMS triggers as users approach stores
- Richer multimedia: MMS multimedia messaging opens creative doors for GIFs, images and video
- More personalization: With conversational commerce rising, two-way messaging may feel more personalized than apps
- Customer identity graphs: Unified profiles linking CRM data to mobile IDs will support better lifecycle SMS targeting
As Deloitte’s research notes, we’ve only begun scratching the surface of possibilities as SMS matures as an advertising medium. Expect innovations in creative formats, targeting and measurement as adoption accelerates.
Wrap Up
This SMS marketing guide explored recent statistics confirming soaring open rates along with higher clicks, conversions and redemption of text promotions over email or other digital channels.
With consumer openness rising and millennials welcoming marketer outreach via their primary medium, SMS offers brands unparalleled direct access on the personal device never leaving our sides.
As text messaging capabilities grow more flexible and integrated with automated workflows, SMS marketing promises an exciting expansion of mobile consumer engagement powered by timely relevance.
