SMS Marketing Statistics 2023: Facts, Demographics, Usage, Response Rates

Introduction

SMS Marketing Statistics: Going ahead into the technologically developed world, we are now able to connect with brands and vice versa for marketing purposes. Initially, we used to text a friend or family but now, brands are using Text Marketing techniques to grow their customer base. Looking at today’s total number of companies using this strategy, the SMS Marketing Statistics prove that between 2023 to 2027 the global market will reach $8404.89 million at a CAGR of 3.8%. Leaping from a team of employees sending SMSs to multiple customers to a software replacement the work now has got itself integrated with Artificial Intelligence.

Editor’s Choice

• Businesses will undoubtedly take advantage of mobile phones that 95% do not need to connect to the Internet. Statistics on SMS marketing show that SMS marketing is becoming an increasingly important feature of mobile advertising software.
• This SMS marketing research will examine the size of the SMS market, its effectiveness with consumers, how SMS is used by businesses, how the COVID-19 pandemic impacted SMS marketing strategies, and what the future holds in text marketing.
• You might also consider using SMS marketing to boost your other channels after you’ve finished this reading. You’ll be able to see SMS in a new light.
• According to a recent study by Market.us, the global chatbot market size is projected to reach USD 4.3 billion by 2032 growing at a compound annual growth rate (CAGR) of 19.29%.

SMS Marketing Statistics

• The basic characteristics of SMS remain the same from 1992 when the first SMS was sent. They are short (160 characters) but simple. Its simplicity has driven widespread adoption and lasting power.
• Americans check their phones an average of 96 times per day or about once every 10 minutes. This is a 20% increase from the previous two years. (Source: Asurion, 2019)
• Additionally, in 2019, there were 2.98 billion text messages in the United States. (Source: Statista, 2020)
• In 2020, there were 2.1 Trillion text messages exchanged. This is 52 billion more messages than in 2019. (Source: CTIA, 2020)
• Consumers send on average 13 text messages to their cell phones each day. This is four times more than the average daily number of emails that are sent to their cell phones. (Source: Zipwhip, 2021)
• Online messaging apps are also very popular, with 2.52 billion users as of 2020. (Source: Statista, 2021)

Demographics and Usage

• In 2018, texting was the most popular method of communication for teens between 13 and 17 in the US. The texting (35%), in-person (32%), and social media (16%). (Source: Common Sense Media 2018)
• Recent studies have shown that 83% of teenagers in the U.S. used SMS to stay in touch with their families and friends during the COVID-19 epidemic. Next came phone calls (72%), and social media (66%). (Source: Statista, 2020)
• Americans aged 18-24 check their phones twice as often as the national average — 190 times per day or more than once every 10 minutes. (Source: Asurion, 2019)
• 68% of Americans aged 18-24 are more likely to limit their smartphone use than the rest of us. (Source: Asurion, 2019)
• Adults have preferred texting to other forms of communication 2016 for at least six decades. (Source: Text Request, 2016)
• 96% of Americans have a cell phone. However, 15% of Americans do not have access to the internet via a smartphone. They can only access basic SMS services. This means that 52.5 million Americans cannot be reached via text messaging. (Source: Apofonica, 2019)
• Globally, 5 billion people have a cell phone of some sort. 2.29 billion people can reach them via SMS/cellular, not the internet. (Source: Apofonica, 2019)
• 76% of millennials love texting for the convenience of checking messages at their own pace. (Source: TextMagic, 2019)
• Text campaigns targeted at millennial customers can result in an 11% to 30% increase in engagement for businesses (Source: TextMagic 2019, 2019).

Reasons to use SMS Marketing

(Source: simpletexting.com)

According to the selected group of respondents, the primary reason that made them use SMS marketing is higher engagement levels from customers, followed by higher open and click-thru rates than other channels.

SMS Marketing Effectiveness

• SMS has become an integral part of mobile marketing solutions. To boost SMS campaigns, you can send text messages online and offline from your mobile device, as well as from your desktop or laptop computer. It is how effective? Below are some insights from SMS marketing data, which focuses on customer preference and impact.
• Because it's easy to use, SMS is the preferred channel among consumers. They don't need to download an app from a brand to receive notifications. SMS also allows for a direct notification and won't be lost in an inbox as an email. (eMarketer, 2016)
• 9/10 of consumers prefer to communicate via text message with businesses, whether it's through reminders, alerts, or back-and-forth communication. (SMS Comparison, 2021)
• According to statistics, almost 80% of people use SMS business communications. They find it easy, fast, and unobtrusive. (ClickSend, 2019)
• 7 Million people used business text messaging services in 2020. This makes it one of the fastest-growing marketing channels. (SMS Comparison, 2021)
• Over 50% of consumers prefer text messaging to phone calls for customer service. The US consumer is 5x more likely than Americans to text and receive messages than they are to make phone calls. (Source: SMS Comparison, 2021)
• The top spot for consumers who want to receive loyalty updates from brands was taken by SMS (48%). Email (22%), app notifications (20%), and direct mail (8%) are other channels. (Source: eMarketer, 2016)
• This is supported by new studies that found that 52% of consumers like to be texted about promotions. (Source: ZipWhip, 2020)
• 30% of customers feel that they are important to receive updates via text about deliveries. (Source: ZipWhip, 2020)
• 75% of customers want special offers via text messages. Text messages have a higher CTR (9.18%) than other marketing channels like Facebook (0.90%) or Google Adwords (1.91%). (Source: SMS Comparison, 2021)
• 90% of customers believe loyalty programs that are delivered via text have value to them. (Source: SMS Comparison, 2021)

Response Rates

• The average open rate for SMS marketing is 82%. (Source: Shift)
• Email, on the other hand, has a 20% open rate and 49.7% spam. (Source: Voicesage)
• A text message can usually be answered within 90 seconds for the average person. (Source: Voicesage)
• Even though less than 20% of people answer calls that they are not expecting, text messages are read on average in five seconds. (Source: Text Request, 2016)
• For SMS messages, there is a 45% response rate, compared to 8% for emails. The interaction rate is much higher with an average click-through rate of 36% for SMS messages and 3.4% for emails. (Source: SMS Global, 2021)
• Another source claims that email has a response rate of just 6%. A response rate of 750% for SMS would be if it was at 45%. This means that SMS promos and offers are more likely to be opened and responded to and ultimately lead to sales. (Source: ClickSend, 2019)
• Recent studies have shown that 6 out of 10 consumers respond to texts sent by businesses within five minutes. (Source: SimpleTexting, 2020)
• Additionally, 95% of all text messages are opened within three minutes after being sent. (Source: SMS Comparison, 2021)

Top Mobile Marketing Software

• This cloud-based messaging software allows you to manage customer relationships. In our Avochato review, learn how to leverage its core features such as ‘textable landlines', live inboxes, and automated surveys for mobile advertising.
• Iterable's customizable workflow module allows you to create personalized SMS campaigns. In our Iterable review, you will see how features such as customer segmentation and triggered campaigns can give you a competitive edge.
• io. This digital platform includes a robust SMS feature, as well as features for other channels. In our Customer.io review, you can see how the A/B testing module and liquid-templating feature can benefit your company.
• This digital marketing module offers both mobile and email marketing capabilities. In our Adestra review, learn how to use its powerful features like social sharing, project management, and analytics to make data-driven decisions.
• This all-in-one marketing analytics platform can help you understand the performance of your mobile marketing campaigns. In our InsideView review, you will learn more about its powerful features like tech profiling, data diagnostics, custom prospect lists, and data health diagnostics.

SMS Marketing and Business Statistics

• What are the advantages of SMS marketing for businesses and corporations? What are the business responses to consumers' preference for SMS marketing? The SMS marketing report provided some interesting information.
• Despite the SMS boom, 68% of businesses still use the platform to reach customers. (Source: Zipwhip, 2020)
• It's changing. Text messaging is becoming a more popular communication tool for businesses. 39% of businesses today use text messaging to communicate with customers. Certain industries such as real estate (73%), agriculture/veterinary (65%), and entertainment/leisure (63%) are expanding their use of SMS. (Source: Zipwhip, 2019)
• 73% of businesses intend to increase their SMS budgets in 2019 to take advantage of increased SMS adoption. (Source: SMS.to Blog, 2019)
• 47% of marketers believe that SMS is the most effective way to market to retailers. (Source: SMS.to Blog, 2019)
• 43% of consumers have sent a proactive message to a business. One in three of those individuals didn't receive a response. Businesses that do not have text-enabled phones will miss potential customer messages. (Source: Zipwhip, 2020)
• 75% get frustrated when they can’t reply to business text messages. This could be due to limitations with certain types of texting tools like short-code messaging. (Source: Zipwhip, 2020)
• Today, 68% of businesses text. (Source: Zipwhip, 2020)
• SMS marketing campaigns can use vanity URLs or brand links to increase brand visibility and CTRs of up to 39%. (Source: Zipwhip, 2019)
• 21% of businesses use SMS rewards to reward loyal customers. (Source: Access Development, 2016)
• 77% of consumers will have a positive impression of a company offering to text. (Source: Mobile Marketing Watch, 2016)
• SMS reminders for business appointments reduced the number of missed appointments by 26%. (Source: Aviaro, 2018)
• Consumers prefer to track their orders via SMS when products are shipped to up to 80%. (Source: Aviaro, 2018)
• As of 2023, 67% of the business owners have increased budgets for their SMS marketing.
• 91% of the marketers believe that SMS marketing helps in higher conversion rates.
• 81% of the business owners that use SMS marketing strategy have integrated their operations with Mailchimp, Salesforce, and HubSpot.
• By 2027, 5.9 billion users will subscribe to 5G connections.

Source: zip whip, State of Texting

Future of SMS Marketing

What is the future of SMS marketing and texting?

• These are the developments and projections that will shape SMS for business.
• Experts predict that by 2023, 3.5 Trillion SMS messages will be sent out to business customers. This is up from 2.5 trillion in 2019, according to experts. (Source: Juniper Research, 2019)
• Rich Communication Service, which is estimated to reach $75 Billion by 2021 will be due to greater adoption. RCS will integrate SMS with other chat apps to create a messaging channel that features group chat, video, read receipts, and other high-level functionality. (Source: ClickSend, 2019)
• In 2022, the expected mobile advertising spend will reach $247.510 million. (Source: Statista, 2021)
• Chatbots will use AI technologies such as machine learning and natural language programming to communicate with customers via SMS. They can instantly send customers reminders and replies to FAQs (Source: Hureka Technologies).

Incorporate texting into your marketing mix

• Our SMS marketing data reveals that SMS is used more often for business purposes. SMS marketing is gaining popularity in major industries like entertainment, education, construction, automotive, and real estate. Even financial and banking industries can send clients instant account notifications via SMS.
• Marketers see SMS as Twitter for digital marketing. It is the SMS feature that does not require the Internet to send or receive messages which makes it an effective tool for marketing.
• SMS can be used together with other marketing tools. You can use it to complement your email marketing software. Others use SMS to complement their marketing automation software.
• Mobile marketing statistics indicate that there are billions upon billions of smartphone owners. However, not all smartphones they own are web-capable. This means that there is an untapped market for businesses, and SMS for marketers is an underutilized and overlooked tool.
• To increase your effectiveness, SMS can be integrated into your marketing mix. This is the perfect time to use SMS in promotions and marketing.

Key Consumer Insights

• A survey revealed that 42% of Millennials check text messages at least 10 times per day. Responding to the question “How quickly do you check your text notifications throughout the day?” 60% of respondents answered within 1-5 minutes.

• Consumers check their text messages on average more than any other app they have on their phone.
• 68% of respondents say that checking, replying to, and sending text messages are the most engaging activities on their phones during the day.
• You can check their social media updates
• You can check their email
• Making phone calls
• News or entertainment consumption
• Texting is a more informal and efficient way to communicate with consumers than email or phone calls. It is possible to create effective texting business communication strategies based on this channel.

Most respondents are open to receiving text messages from businesses about:

• Tracking shipment (75%)
• Confirmation/Order Status (65%).
• Reminders and alerts for scheduling (46.3%)

• Respondents (over 45%), value two-way conversation and believe having the ability to text businesses back is helpful, including 43% of Gen X respondents. 12.9% said that they are more likely to support businesses with text-back capabilities.
• Because it is both convenient and responsive, consumers value mobile messaging support. Texting allows consumers to quickly and efficiently contact businesses, unlike phone calls and emails which can take longer than life. A business's customer service personnel will also save time by using texting to communicate with customers. Texting takes up less time than a call.

• When it comes to promotions that are time-sensitive, Customers prefer to text from businesses.
• 50% of respondents stated that flash sales and time-sensitive promotions would encourage people to sign up for a business’s text messages. These will be followed by customer service notifications and back-in-stock notifications:
  • Reservations
  • Schedule an appointment
  • Special occasions
  • Sales are either semi-annually or annually

SMS Marketing Statistics by Possibilities of Consumers Interacting with Brands

(Source: 99firms.com)

According to SMS Marketing Statistics, 36.1% of consumers are extremely likely to interact with brands via SMS, whereas only 1.5% of consumers disagree with the same.

Key Business Insights

Businesses are increasing their SMS marketing budgets as opt-in rates rise.

Respondents indicated that 61% of marketers and businesses are planning to increase their text marketing budgets for 2020. 41% reported an increase in consumer opt-in rates in the last year. Text marketing is proving to be a more effective way for businesses to increase their sales conversions and return on investment. It also has higher open and click-through rates than other channels.

SMS Marketing Statistics by Use of AI in Text Marketing

(Source: statista.com)

According to Text Marketing Statistics, as of May 2023, SMS are sent using artificial intelligence for the top 3 purposes Customer Satisfaction Surveys/ Review requests (57%), Appointment/ Reservation reminders (50%), and Billing Collections (30.5%). Only 12.5% of companies use it for Sweepstakes or Contest purposes.

Conclusion

Businesses are changing the way they communicate with their customers. Ten years ago, no one could have predicted that customers would connect via Facebook Messenger with businesses or that chatbots would be available everywhere.

Despite changing communications landscapes, SMS Marketing Statistics proved that it has remained stable throughout the years. Nobody hesitates to send or receive a message.

Although texting isn't as popular as email marketing, it has proven to work well as a communication channel. We wanted to understand the views of consumers and businesses in America about texting, as it continues to grow in popularity.

One Survey surveyed hundreds of U.S. business owners and marketers to find out their primary motivations for texting and SMS marketing.

Shivanjali Pawar

Shivanjali, a Digital Marketing Expert, regularly contributes to various industry-specific magazines. She is interested in tech statistics, SMO, and raising awareness about technical how-to guides. She can often be found exploring different places on weekends.

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