Lesson 9

SMS Market Overview

Last Updated: September 2019


Understand the prospects of the A2P SMS industry and how to identify which industries can best utilise solutions based on SMS.



SMS Solutions

Here are the most commonly used SMS solutions:

  • SMS Marketing

  • SMS Reminders

  • Security & Identification

  • Billing & Collections

  • Event Management

  • SMS Donations

  • Ordering and Delivery Notifications

  • SMS Alerts

  • People Management

  • Sales & Marketing Automation

  • Customer Support

  • SMS Competitions

  • Information Services

SMS services are very flexible, and can be incorporated in industries across the spectrum. Any industry can use SMS services to their advantage - from financial services to local bake shops, doctors, and global celebrities.



The Future of the SMS Market

The perceived cost of SMS is high, and many people tout its demise due to the popularity of cloud based chat services like WhatsApp. This misconceptions have been answered in this Rise of SMS Marketing article. In addition to this, external applications also cannot be accessed in a programmatic manner. 

Since recipients have moved towards using these free messaging applications for social clutter, this given text messaging the opportunity to be a reliable filter. SMS messages have an open rate of close to 90%, simply because recipients need to see a snippet of the message before they are able to delete it

SMS is Infrastructure

SMS operates over the same wireless protocol as mobile phone calls. Text messaging does not need a separate app or internet connection to operate. If recipients are data capped or in blackout areas, no problem. The SMS will still go through, where internet protocols will not.

All mobile devices have SMS technology is built into them. It is not confined to a limited audience like Apple or Android users. Messages can be delivered to any mobile phone at any given time.

Pre-installed on all Mobile Phones

Every time you ask a user to interact with a campaign, naturally a percentage of the audience is lost. Modern day campaigns ask users to search for, download, and install their applications before reaching their end goal. By the time the core message is imparted, the user is more likely to be lost to frustration.  Receiving an SMS is effortless. It is reliably delivered, and always read. 

Near 100% read rate, respected communication

Currently, there are a flood of free messaging apps saturating the market. Since these applications are free, your recipient's inbox starts to fill up with noise, daily jargon, and clutter. This does not create an ideal circumstance for sending promotional messages.

Evolving as a technology

Don't think of the SMS message as the end, think of it as the beginning. It is the most successful and responsive communication method for a reason. I

Technology is evolving, with advancements like link tracking to responsive mobile landing pages for rich marketing experiences. Companies like Google are heavily investing in Rich Communication Services (RCS) along with global carriers. RCS is an enhanced version of SMS which will allow video transfers, file sharing, instant group chats, IP voice calling, screen sharing, message delivery tracking, real-time tracking to see when the user is typing, and more. Learn more about Google's dedication to improving text messaging with RCS by clicking here.

Global A2P SMS volumes even in its current form are growing at an astonishing rate. While the advent of web based P2P services has eroded that market somewhat, the overall messaging volumes have continued to increase. With all this in mind there is a high level of general confidence in the A2P SMS industry and its future.