How effective is SMS marketing in 2021

The effectiveness of SMS marketing

In 2021 there are more marketing channels than ever before. Choosing the right method for your business can be difficult. Traditional marketing platforms such as print and TV remain costly, while mobile advertising and email struggle against ad-blocking and spam filters. Sending SMS online has become one of the most effective marketing platforms due to open rates of 98%, high conversion, and its ability to boost other channels.

Related: The impact of SMS on email open rates

Mobiles have become one of the biggest platforms for marketing

The number of mobile phone users has nearly tripled over the past decade, with over 5 billion people using a mobile phone. With more mobile devices in hands, the effectiveness of SMS software is rising. A study by British psychologists found that consumers spend twice as much time on their mobiles than they think they are. It is estimated that users touch their phone 2,617 times per day, illustrating why targeting mobile consumers is the most direct marketing method.

More businesses are now turning to SMS as their desired choice of mobile marketing. Coca-Cola spends 70% of its mobile marketing budget on SMS services. Sending SMS online has become particularly useful for reaching younger audiences. A study conducted by OneReach found that 85% of students preferred SMS as a customer service option. High adoption rates among these younger audiences suggest that SMS marketing's effectiveness will continue to grow.

High conversion rates

SMS messages have a 45% response rate (email has just 8%). But more importantly, the interaction with these texts is also significantly higher than other marketing tools. After moving to a bulk SMS service, FunMobility recorded a massive click-through rate of 36%, while email click-through rates remain at just 3.4%.

It is essential to measure your marketing campaigns' efficacy to understand where your customers are coming from. You can easily track your SMS marketing campaigns through Google Analytics using our guide to view click-through rates for every SMS message you send. Debt collection agency Time Warner was able to increase late bill collections by 49% after implementing SMS online software. These results were easily trackable and indicated that SMS reminders were their most effective marketing tool for increasing turnover.

Related: SMSGlobal's automatic URL shortener and how to enable this feature

Related: How to view MXT reporting for URLs and click-through-rates

Boost your other channels

SMS marketing can also increase interaction with your other marketing touchpoints such as email, website, and in-store visits. Using a shortened hyperlink is a great way to direct users to your website. A simple SMS reminder saying, "check your email for important updates", can also increase your email open rates.

SMS is an excellent method for distributing coupons to increase in-store visits and purchases. Kiehl's Skin Care had 73% of their opted-in customers make a purchase following an SMS campaign launch.

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A direct method of marketing

The effectiveness of a marketing campaign is often dependent on how direct it can be. One in five emails sent from a commercial address end up in the junk folder or are blocked entirely. In contrast, web SMS services can reach almost anyone with a mobile phone and are read on average within 90 seconds of being received. The effectiveness of mobile advertising has also reduced with the rise of ad-blocking technologies. Three hundred eighty million mobile users now use ad-blocking, limiting the reach of mobile advertising.

Messaging applications such as WhatsApp or Facebook Messenger have grown in popularity; however, these are not available on every device and are inaccessible in some countries. The Ericsson Mobility Report found that 3.6 billion devices in the world are non-smartphones. This shows that nearly 50% of the world's devices cannot be reached through mobile advertising or alternative messaging applications. Sending SMS online is a direct method, and one of the only reliable ways to engage these consumers through their mobile devices.

Related: 5 High Performing SMS Marketing Strategies

Final thoughts

SMS marketing has been established as an effective and low-cost marketing tool. In 2021, Mobile use has soared to an all-time high, and as a result, SMS software has become a popular marketing platform. Text messaging's direct nature results in high click-through rates, which increases the success and conversions of other business channels.

To find out how your business can capitalise on SMS marketing's high impact, get in touch with one of our SMS specialists to talk about all things strategy and SMS marketing. Or create your free SMSGlobal account to start sending with 25 free credits today.