Costs And Benefits of SMS Marketing


By 2019, over 5 billion people around the world will own a mobile phone. On average, each of these users will touch their mobile phone 2,617 and 95% will open an SMS message within 5 minutes of it being received.

With this in mind, an increasing number of businesses are exploring the benefits of SMS marketing and bulk SMS.

SMS marketing is an ideal communications platform to share news, grow subscribers, generate and nurture leads, boost sales and ultimately improve the customer experience.

What is SMS marketing

SMS marketing refers to the use of SMS for to achieve various marketing objectives. SMS marketing is employed by businesses across a number of B2B and B2C sectors, and is most commonly used to send special offers, news, updates and alerts in bulk to those who have opted-in to receive them.

What is bulk SMS

Bulk SMS, mass SMS messaging, bulk text messaging all refer to the dissemination of large quantities of SMS messages to mobile phones. Bulk SMS is perhaps the most widely utilised form of SMS marketing.  Using an SMS service provider, businesses can use different solutions to send bulk SMS. These include mobile applications, web interfaces, or an integrated SMS API within a website or other platform.

How businesses can benefit from SMS

With increasing numbers of people spending their time online, the power of more traditional forms of advertising such as print and television is diminishing. It is also generally considered quite costly.  

SMS marketing gives businesses a unique opportunity to connect with almost anyone, at anytime, anywhere in the globe at a minimal cost and with little difficulty. As such, the application to person (A2P) SMS market has grown significantly in recent years and is predicted to grow from over $55.6billion this year to $78.6billion in 2022, according to new research by Infoholic.

Some of the benefits of SMS marketing include:

  1. Speed

Once designed and configured, sending bulk SMS to thousands or even millions of recipients can be done almost instantly. And with the vast majority of SMS opened within 3 minutes of being received, SMS is the fastest most effective way for marketers and businesses to connect with their target audience.

  1. Precision

SMS provides a highly targeted communication channel as messages can be sent directly to the intended audience with little restriction.  

  1. Simplicity

SMS messages, comprised of 160-characters, do not require heavy design or content, making the process of creating and sending bulk SMS relatively quick and simple. Especially when compared to more traditional alternatives such as television or print advertisements. This can save businesses a considerable amount of time and resources.

  1. Fewer Barriers

Unlike marketing emails, which are a popular choice for businesses, SMS is not restricted by spam filters. This effectively means that marketers can connect with almost anyone with a phone number.  There are however, spam laws that are applicable to some businesses and organisations that must be acknowledged and understood before creating and sending an SMS campaign.

  1. Ability to enhance other communications channels

SMS is a highly effective platform in isolation. It can also, however, be a highly beneficial addition to other communications channels, particularly email.  On average between 20-25% of marketing emails are opened. By incorporating SMS, this email open rate can be increased by around 20 to 30 percent. All that’s required is a simple follow-up SMS saying “Hi there, we’ve just sent you an email on xxxx, don’t miss out”.

  1. Affordable

Compared to most other forms of traditional and even digital marketing, SMS is considered highly cost effective. A single SMS a cost just a few cents and achieve a significant ROI. What does this mean for businesses? Even those with a limited budget can utilise SMS technology to reach hundreds, thousands and even millions of potential customers quickly, easily, and affordably.

SMS is not a new technology. For many forward-thinking businesses, however, it represents one of the key pillars to any effective marketing campaign. With many benefits, it is transforming customer interaction and is expected to be one of the most highly effective communications tools for businesses for years to come.


Author: Carl Krumins, CEO, SMSGlobal