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  • 40 SMS Marketing Statistics You Must See: 2020 Market Share Analysis & Data

40 SMS Marketing Statistics You Must See: 2020 Market Share Analysis & Data

Category: B2B News

As 95% of people own mobile phones and short messaging system (SMS) does not need an Internet connection, businesses are bound to make the most of these technologies. SMS marketing statistics show SMS is indeed increasingly becoming a core feature of mobile marketing software.

In this SMS marketing research, we’ll look into SMS marketing market size, the effectiveness of SMS with consumers, how businesses use SMS, and what the future holds for text marketing.

After you’re done with this reading, you just might consider boosting your other channels with SMS marketing. One thing is for sure; you’ll see SMS in a whole new light.

key sms marketing statistics

General SMS Statistics

Since the first text message was sent in 1992, SMS has remained largely the same – short (160 characters) and straightforward. This simplicity has driven its massive use, adoption, and staying power. How are developments in the texting landscape? Let’s find out.

  • In 1995, the average American user sent 0.4 texts per month. As phones and networks became more advanced, and texting could be done between networks, SMS usage increased. By 2000, the average number of text messages sent in the US grew to 35 per person each month. [1]
  • By 2007, texting hit 1 billion daily messages and became the most widely used form of communication, overtaking phone calls. [2]
  • In 2010, an estimated 6.1 trillion messages were sent globally or around 193,000 messages per second. [3]
  • No exact SMS usage can be arrived at because data from mobile carriers are hard to get. There is also now heavy usage of WhatsApp, Messenger, Snapchat, and similar text messaging apps. However, put together available figures for SMS and in-app, and we’re looking at an estimated 145 billion messages sent each day around the world. [4]

Demographics & Usage

  • Among 13 to 17-year-olds in the US, the favorite way of communicating in 2018 was texting (35%). It was followed by in-person (32%), social media (16%), and video chatting (10%). [5]
  • In comparison, adults have preferred texting as the top form of communication for at least six years now. [4]
  • American adults in 2018, on average, sent and received 32 texts per day. Considering there are 250 million US adults, the total adds up to 18 billion texts per day, 541 billion texts each month, and 6.5 trillion texts every year. [4]
  • Text is the single most used feature of a smartphone. In fact, 97% of all smartphone users have texted within the last week. Despite mobile devices taking up the majority of web traffic, people text more than they use the Internet. [4]
  • 59% of US adults say they have used their cellphones to call or text someone while inside a store to discuss purchases they’re planning to make. [6]
  • 96% of adults in the US own a “cell-phone” of some kind. But 15% of the American population does not have internet connection via a smartphone and has access only to basic SMS services.  That’s roughly 52.5 million Americans that can only be reached by text messaging. [7]
  • On a global scale, 5 billion people own a cell-phone of some kind, and 2.29 billion can be reached through SMS/cellular and not via the Internet. [7]

Source: Common Sense Media

Is SMS Marketing Effective?

SMS is now becoming an integral feature of leading mobile marketing solutions. You can send text messages online or offline, from mobile devices, and from desktop or laptop computers to boost SMS campaigns. How effective is it? The SMS marketing data below, with a focus on customer impact and preference, provides some insights.

  • 9 out of 10 consumers prefer to communicate with businesses through text message, whether through alerts, reminders, back and forth communication, etc. [8]
  • In fact, 80% of people use SMS for business communications, finding it convenient, unobtrusive, and fast with near-instant delivery of messages. [9]
  • More than 50% of consumers would prefer text messaging over phone calls for customer support rather than phone calls. Moreover, US consumers are 5x more likely to send and receive text messages than phone calls. [8]
  • 75% of customers would like special offers sent to them through text messages. Furthermore, CTR for text messages is much higher (9.18%), compared to other marketing channels such as Google Adwords (1.91%) and Facebook (0.90%). [8]
  • A third of Millennials prefer SMS messages for deliveries, promotions, and surveys. [10]
  • Among the channels preferred by consumers for receiving loyalty updates from brands, the top spot went to SMS (48%). Other channels include email (22%), app notifications (20%), and direct mail (8%). [11]
  • SMS is the preferred channel for consumers because opting in is easy. Furthermore, they don’t have to download a brand’s app to receive notifications. Also, SMS is a more direct push notification that won’t get lost in the inbox like email. [11]

Open & Response Rates

  • SMS marketing beats email marketing with a 98% open rate and only 1% spam. [12]
  • In contrast, email only has a 20% open rate but 49.7% spam. [13]
  • 90% of SMS messages are read within 3 minutes of being received. [14]
  • It takes just 90 seconds for the average person to respond to a text message. [15]
  • While only 20% of people answer calls they don’t expect, texts are read in 5 seconds on average. [4]
  • There is a 45% response rate for SMS messages compared to just 8% for email. Interaction is also much higher, with a click-through rate of 36% for SMS and a mere 3.4% for email. [16]
  • Another source puts the response rate for email at just 6%. If SMS is at 45%, then that would mean a staggering 750% response rate over email. In other words, when promos and offers are sent via SMS, they are much likely to be opened, responded to, and lead to sales. [9]

Consumers’ preferred channels for receiving updates from brands

Top Mobile Marketing Software

  1. Avochato. Use this cloud-based text messaging software to manage relationships with your customers. Learn how you can leverage its core features like ‘textable’ landlines, live inbox, and automated surveys for mobile marketing here in our Avochato review.
  2. Iterable. Create personalized SMS campaigns using Iterable’s customizable workflow module. See how its features like triggered campaigns and customer segmentation can help you get a competitive advantage in our Iterable review.
  3. Customer.io. This digital platform offers a robust SMS feature mixed in with features for other channels. See how its A/B testing module, Liquid Templating feature, and customer segmentation capability can help your company in our Customer.io review page.
  4. Adestra. This digital marketing module includes both email and mobile marketing capabilities. Learn how you can use its robust features such as social sharing, project management, and analytics to make data-driven decisions in our Adestra review.
  5. InsideView. Use this all-in-one marketing intelligence platform to understand how your mobile marketing campaign is doing. Read about its powerful features such as tech profiling, data health diagnostics, and customizable prospect lists in our InsideView review.

SMS Marketing & Business Statistics

How are businesses and companies leveraging SMS for marketing? And what have been business responses to consumers’ seeming preference for SMS marketing? Our SMS marketing report found some interesting details.

  • Despite the SMS boom, 61% of businesses have yet to embrace the platform. [17]
  • But it’s about to change. Businesses are increasingly adopting text messaging as a communication tool. Today, 39% of businesses use some form of texting to communicate with customers. Certain industries such as real estate (73%), agriculture/veterinary (65%), and entertainment/leisure (63%) are expanding their use of SMS. [18]
  • Pursuant to more SMS adoption, 73% of businesses plan to increase their SMS budgets in 2019. [17]
  • 47% of marketers believe the retail industry uses SMS most effectively. [17]
  • Over 50% of consumers have tried to reply to a missed call via text. For businesses that are not text-enabled, those are missed messages from potential customers. [18]
  • Furthermore, 75% of consumers are frustrated when they cannot respond to a business text message because of limitations with certain kinds of texting tools such as short-code texting. [18]
  • 81% of professionals say they use texting for business. [4]
  • Using branded links or vanity URLs in SMS marketing campaigns can increase brand visibility and boost CTRs by up to 39%. [19]
  • 33% of businesses pan to target loyal customers via SMS rewards.
  • 77% of consumers are likely to have a positive perception of a company that offers texting. [10]
  • Sending business appointment reminders to customers through SMS reduced missed appointments by 26%. [20]
  • Up to 80% of consumers preferred to track their orders via text when products were shipped. [20]
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Top 10 Industries that Reported Texting with Customers in 2019

Top 10 Industries that Reported Texting with Customers in 2019
Real Estate: 73

Real Estate

%
Top 10 Industries that Reported Texting with Customers in 2019
Agriculture: 65

Agriculture

%
Top 10 Industries that Reported Texting with Customers in 2019
Entertainment & Leisure: 63

Entertainment & Leisure

%
Top 10 Industries that Reported Texting with Customers in 2019
Construction, Machinery & Homes: 57

Construction, Machinery & Homes

%
Top 10 Industries that Reported Texting with Customers in 2019
Utilities, Energy & Extraction: 53

Utilities, Energy & Extraction

%
Top 10 Industries that Reported Texting with Customers in 2019
Airlines, Aerospace & Defense: 50

Airlines, Aerospace & Defense

%
Top 10 Industries that Reported Texting with Customers in 2019
Business Support & Logistcs: 50

Business Support & Logistcs

%
Top 10 Industries that Reported Texting with Customers in 2019
Nonprofit: 50

Nonprofit

%
Top 10 Industries that Reported Texting with Customers in 2019
Automotive: 48

Automotive

%
Top 10 Industries that Reported Texting with Customers in 2019
Education: 47

Education

%

Source: zipwhip, State of Texting

Designed by

The Future of SMS Marketing

What awaits texting in general and SMS marketing in particular in the years ahead? Here are developments and projections shaping up SMS for business.

  1. 3.5 trillion SMS business messages will be sent in 2023, up from an estimated 2.5 trillion in 2019. [21]
  2. By 2021, Rich Communication Service (RCS) is projected to be worth $75 billion, driven by greater adoption. RCS will combine SMS with other chat apps to provide a messaging channel that will feature group chat, video, read receipts, and other high-level functionality features. [9]
  3. Chatbots will utilize AI technologies like machine learning and natural language programming to effectively converse with customers via SMS. They can send customers instant replies, reminders, and answers to FAQs. [22]

SMS business messages in 2023

Include Texting in Your Marketing Mix

Marketers consider SMS as the Twitter of digital marketing. Which is kind of ironic – an analog tool in the digital age. But it is indeed the SMS attribute of not requiring the Internet to send and receive messages that make it a convenient tool for marketing.

While our separate mobile marketing statistics show there are billions of mobile device owners, not all cellphones they carry are Web-capable smartphones. That means there is a huge untapped audience for businesses and an overlooked and underutilized tool in SMS for marketers.

However, as our SMS marketing data indicates, there is a resurgence in the utilization of SMS for business. Major industries, such as real estate, entertainment, construction, automotive, and education, among others, are reaping the benefits of SMS marketing.

Even the banking and finance industries can provide instant account notifications to clients via SMS.

The good thing with SMS is that you don’t have to use it as a standalone marketing tool. It can be used to support your email marketing software, for example.

Other companies setting MS in tandem with their sales or marketing automation software.

The point is that you can include SMS in your marketing mix to make your campaigns more effective. If you haven’t been leveraging SMS for promotions and marketing, now is the opportune time to do this.

 


References:

  1. ^A Brief History of Text Messaging
  2. ^How Much Time Do People Spend on Their Mobile Phones in 2017?
  3. ^SMS Marketing Blog
  4. ^How Many Texts Do People Send Every Day (2018)?
  5. ^Social Media, Social Life Infographic
  6. ^Online shopping and purchasing preferences
  7. ^SMS MARKETING GUIDE FOR BUSINESS
  8. ^The Growth Of Text Messaging For Businesses In 2020
  9. ^Fascinating Facts: Remarkable SMS Marketing Statistics
  10. ^eRetailers: Text Consumers or Risk Irrelevancy in 2017
  11. ^Consumers Prefer SMS for Loyalty Program Updates
  12. ^SMS Marketing Wallops Email with 98% Open Rate and Only 1% Spam
  13. ^SMS vs Email and Apps: Customer engagement infograph
  14. ^The impact of SMS on email open rates
  15. ^RCS: A Formidable New Entrant to the Market for B2C Campaigns
  16. ^How effective is SMS marketing in 2018
  17. ^SMS Marketing Statistics in 2019
  18. ^State of Texting 2019
  19. ^10 ways to optimize your SMS marketing campaigns
  20. ^The future of marketing: Text
  21. ^HOW RCS BUSINESS MESSAGING WILL DISRUPT THE MESSAGING LANDSCAPE
  22. ^7 SMS Marketing Trends You’ll Wish You Had Noticed Earlier

 

Nestor Gilbert

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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