Variety Research’s The State of SMS Marketing in 2023 report reveals that nearly 45% of consumers prefer receiving promotional messages from brands. Combine that with the fact that people check their phones 144 times a day, and SMS automatically becomes a marketing channel you cannot overlook.

Developed as one of the most direct and unassuming communication channels, SMS helps you deliver messages that reach your customers where they’re already spending time—right on their phones.

But that’s only one of the advantages of SMS marketing. 

What else can it do for your business? How can you get the maximum ROI out of your SMS campaigns? And how can you integrate SMS with your other marketing channels for a truly connected customer experience?

In this guide, we will go over the advantages of SMS marketing. Let’s begin!

Defining the SMS

SMS stands for short message service. It is a type of text message sent from one mobile device to another over any cellular network. 

These messages are generally limited to 160 characters and contain only text—it doesn’t support images, videos, or other media. 

However, if you want to add images, videos, or audio—or go beyond the 160-character limit—your message will turn into a multimedia messaging service (MMS). 

Note that you require an internet connection to send and receive MMS. 

6 important benefits of SMS marketing

Plus, according to Salesforce’s State of the Connected Consumer Report, 66% of customers prefer to be contacted through text messages instead of other channels. Also, the latest SimpleTexting survey suggests that 45% more businesses are using SMS marketing now compared to this time in 2022. 

So, what is driving this surge? 

Let’s explore a few core advantages that are convincing marketers to go for SMS instead of other marketing channels:

1. SMS marketing is trustworthy and personal

As noted above, SMS messages go straight to your customer's phone. This direct line makes them feel more personal than emails or calls. People often check texts immediately, sometimes reading them from the notification bar.

In fact, according to the Validity report from 2023, 19% of consumers prefer getting messages via SMS, which is higher than social media (16%), app notifications (6%), and direct mail (6%).

Another reason SMS is popular is that—unlike long, drawn-out emails, texts are short, to the point, and easily skimmable. 

2. SMS marketing offers an excellent ROI

While each marketing channel has strengths, SMS marketing stands out for its exceptionally high open rates, quick response times, and strong ROI. It's particularly effective for time-sensitive communications and can complement other marketing efforts. 

Moreover, during high-volume sales periods like Black Friday, SMS marketing can deliver up to a 2000% ROI, showcasing its effectiveness in driving revenue.

Now, let us review how SMS marketing stacks up against other marketing channels based on the latest data: 

SMS vs. email marketing

• ROI: SMS marketing generates $71 in revenue for every $1 spent, while email marketing returns $42 for every $1 invested. This makes SMS nearly 70% more profitable in terms of ROI.
• Open rates: SMS messages have an open rate of almost 100%, compared to email's average open rate of around 20%.
• Response rates: When it comes to response rate, SMS boasts a 45% rate, significantly higher than email's 6%.
• Speed: 40% of consumers check SMS notifications within 5 minutes of receiving them, making it a much faster channel for time-sensitive communications.

SMS vs. SMM

• ROI: According to Textline data, while SMS marketing can deliver up to $71 for every $1 spent, social media ad campaigns have an average ROI of 250%. However, it's important to note that social media ROI can be more challenging to measure accurately.
• Engagement: TikTok leads social media platforms with a 4.25% engagement rate, followed by Instagram at 0.6%. SMS, with its high open and response rates, can potentially offer even higher engagement.
• Reach: Social media platforms have massive user bases (e.g., Instagram with 1.4 billion monthly active users), but SMS can reach almost anyone with a mobile phone, regardless of their social media usage.

SMS vs. PPC

• ROI: WordStream notes that PPC has an average ROI of 200%, which is lower than SMS marketing's potential return.
• CTR: The average CTR for search ads across all industries is 3.52%, while SMS messages have much higher open and response rates.

Cost: According to Semrush, the average cost per click for Google Ads is $2.69, whereas SMS marketing can be more cost-effective, especially for businesses sending bulk messages. For instance, with Plivo’s low-latency premium carrier network with coverage across 220+ countries, SMS marketing costs can be drastically reduced.

However, we must note that the best approach often involves using a mix of channels to reach customers through their preferred methods of communication. 

3. SMS marketing is more impactful

The human attention span is notoriously shrinking. In this context, SMS marketing can grab attention quickly through short, impactful messages. Compared to email marketing, where lengthy messages can get buried or cold calling, the response to which can often depend on the receiver’s mood, SMS marketing is a non-intrusive way to deliver real-time, high-impact information on the fly.

As noted above, SMS has a staggering open rate—2.7x more than the 37.3% average open rate for email marketing and 19.6x the 4.8% average response rate for cold calls. 

This means your messages are almost guaranteed to be seen when delivered via SMS.

This high engagement is because of the to-the-point, personal nature of SMS marketing and the fact that readers are not distracted away from the CTA. 

4. SMS marketing has low competition

Another vital aspect is competition—only 60.3% of companies use SMS marketing. In contrast, 87% of marketers use email marketing to distribute content, and 31% use email newsletters to nurture leads. 

This lower level of competition presents a distinct advantage, allowing businesses to stand out and deliver impactful messages.

5. SMS marketing can be easily combined with other channels

Your customers can use any channel at any time. So, engaging them via multiple channels and a consistent brand experience increases the chances of conversion. 

You can use both SMS and email marketing simultaneously to improve customer experience by: 

• Using email to collect phone numbers for SMS marketing campaigns
• Recovering lost sales with abandoned cart emails combined with text messages
• Sending personalized recommendations via email and following up with an SMS reminder
• Creating a multi-touchpoint experience where you use SMS to drive attention to your email campaign
• Using SMS to announce flash sales while your emails and social media posts get into the details of the various deals being offered

Some marketers also sync their company’s calendars with SMS to send appointment and event reminders, such as for webinars or service appointments, to reduce no-shows and increase engagement. 

6. No changing algorithms to battle with in SMS marketing

Social media platforms and search engines like Google use sophisticated algorithms to control content visibility and recommendations. This means your content is constantly at the mercy of these shifting algorithms. 

Your content might be on Google's first page and then suddenly get buried under the results pile after a Helpful Content Update (HCU), which sent shockwaves through the SEO industry because it penalized niche blogs and content creators. Websites with stable rankings for years were pushed off the top in favor of larger, corporate-owned websites. 

Google’s March 2024 Core Update made things even worse because it targeted (and deindexed) older domains—further punishing independent content creators. Bloggers and niche website owners were penalized again despite sticking to best practices. 

While the August 2024 update did fix some of the damage, thousands of sites never bounced back to their pre-September 2023 rankings. This is the reality of marketing on search engines and creates endless frustration for marketers, with many feeling powerless as their hard-earned rankings disappear overnight. 

Social media is no different—algorithm updates on platforms like Instagram and Facebook may suddenly reduce your organic reach, which forces you to pay for visibility.

In contrast, SMS marketing has no changing algorithms that dictate whether or not your messages will be seen. Once you send an SMS, it lands directly in your customer’s inbox—which makes this channel simple, stable, and reliable. 

This means you have zero need to constantly adjust your strategy to work around changing guidelines or fight for visibility. 

If utilized properly with ample personalization and the right tools, SMS marketing gives you full control over how and when you reach your audience without being buried by algorithms.

Elevate your SMS marketing strategy with Plivo CX

SMS messages are a reliable, cost-effective, and impactful way to connect with your audience directly. With an AI-driven omnichannel customer engagement platform like Plivo CX, you can manage your SMS marketing campaigns from start to finish while downsizing your SMS costs by 70% and driving ~3x ROI from the campaigns. 

It comes with several features, such as: 

• Powerful audience targeting: Plivo CX empowers you to precisely target your audience by integrating with Shopify or importing your existing contacts. You can then segment these contacts based on various factors like purchase history and demographics, ensuring your messages reach the right people.
• Blazing-fast campaigns: Creating campaigns is a breeze with pre-built templates and AI-powered content generation, allowing you to launch in minutes and see quick results.
• AI-powered content creation: If you're ever stuck for ideas, our Copywriter AI can help you overcome writer's block. Simply tell the AI your objective—your goals, desired tone, level of urgency, etc.—and it will instantly generate a variety of creative options for you to choose from.
  You can then review, select, and even fine-tune the AI's suggestions before sending, ensuring your marketing copy is always top-notch. It's the perfect solution for eCommerce brands looking to scale their content creation and launch more personalized campaigns.
• Multi-channel engagement: To maximize your reach, Plivo CX enables you to engage customers across multiple channels, including SMS/MMS, email, and WhatsApp.

That’s not all! Plivo’s SMS API platform can also catapult your marketing campaigns in several ways:

• SMS API platform: The robust SMS API platform enables businesses to programmatically send and receive text messages, facilitating global customer interactions. 
• Low latency: Plus, you can rely on our proprietary and award-winning premium carrier network that maintains high SMS delivery and open rates regardless of volume or send rate. 
• Extensive global coverage: With coverage across 220+ countries across North America, Europe, Asia, Oceania, South America, and Africa, it offers the flexibility to customize the Sender ID in 100 countries outside the US and Canada.
• Diverse options: The platform supports multiple sending and receiving options to suit various business needs. Users can send and receive SMS using local phone numbers, alphanumeric sender IDs, toll-free numbers, or shortcodes. 
• Customer feedback collection: For gathering customer feedback, Plivo's SMS API can be used to conduct surveys by sending and receiving SMS messages. 

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