• 7.8 trillion SMS were sent in 2011 according to Portio Research • 48 million people worldwide have cell phones but no electricity • On average 44% of Americans have opted into a text message campaign, according to Tatango • Mobile coupons are redeemed 10 times more than paper coupons according to SnapGiant • SMS messages are read usually within 4 minutes of being received, says MobileStorm • The average CTR from SMS campaigns (clicking on in-message URLs) is 6.4% says SignalHQ • Average opt out rate of SMS campaigns for restaurants is just 2.69% according to Cellit • Average opt out rate for retail SMS campaigns is 3.7% • SMS messages surpassed talk minutes for the first time in 2011 in the US according to CTIA • SMS messages increased 12% from 2010 to 2011 in US. • Talk minutes increased only 2.5% from 2010 to 2011 • In 2011 MMS messages decreased 7% since 2010 in the US.
Ever since the rapid rise of the smartphone, the humble text message has been somewhat overlooked by advertisers. It’s understandable, given how many exciting new marketing doors smartphone technology has burst open. But there’s still plenty of value in communication to customers via SMS. In fact, if used correctly, it can be one of the most powerful forms of digital lead generation and advertising available to marketers.
Reach
Firstly just look at the reach. All mobile phones are capable of sending and receiving SMS and most western nations – and many developing countries – have mobile phone market penetration in excess of 100%. Globally we’re talking 87% of the world’s population, according to the latest figures from the International Telecommunication Union. The same reach is not possible with other forms of mobile marketing, which are heavily reliant on mobile internet connectivity and high-powered smartphone devices.
High engagement
Not only does SMS have great reach, it’s also a very direct form of marketing and there’s plenty data backing-up its effectiveness over other mediums. A marketing email is opened on average around six hours after being sent, while a text message is read within four minutes. Open rates are also much higher with SMS messages compared to emails. Around 95% of marketing text messages are read, compared to around 20% of emails.
While SMS messages are limited to 160 characters typically, it’s also becoming common to embed hyperlinks within texts. Signal published a recent study on click-through-rates for SMS hyperlinks related to the retail sector and found a healthy average CTR of 6.16%, much higher than the 2.8% average for email hyperlinks. You can also create customer feedback polls, SMS-based coupon discount codes and competitions.
Once signed-up to an SMS campaign, opt-out rates are pretty low. Cellit published a study in June, where it found the average opt out rate for SMS campaigns was just 3.7%, or 37 subscribers for every thousand text messages sent.
Cost
While running an SMS campaign may be a more expensive than sending marketing messages via email, when you take into account the incredibly high engagement rates it is an extremely cost-effective form of marketing, and remember the cost of your SMS campaign will only increase in line with the reach of your campaign.