Lesson 9

SMS Market Overview

Understand the prospects of the A2P SMS industry and how to identify which industries can benefit from SMS-based solutions.
Lesson 9
SMS Market Overview

9.1 SMS Solutions

Here are the most commonly used SMS solutions:

  • SMS Marketing
  • Virtual Numbers
  • Email to SMS
  • 2 Way SMS
  • SMS Reminders
  • Security & Identification
  • Billing & Collections
  • Event Management
  • Ordering and Delivery Notifications
  • SMS Alerts
  • People Management
  • Sales & Marketing Automation
  • Customer Support, Surveys, and Feedback
  • SMS Competitions
  • Information Services
  • SMS Donations

Online SMS services are very flexible, and many industries can integrate it any all areas of the business. From local bakeshops, doctors, financial services, to global celebrities, they can all take advantage.

9.2 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. These misconceptions are rebuked in this Rise of SMS Marketing article. Plus, external applications like WhatsApp 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 98%, 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, the SMS will still go through, where internet protocols will not.

All mobile devices have SMS technology 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 likely lost from frustration. Receiving an SMS is effortless. It is reliable and always read.

Near 100% read rate, respected communication

Currently, there is 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.

9.3 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.

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.

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 continue to increase. With all this in mind, there is a high level of general confidence in the A2P SMS industry and its future.

Lesson 8
SMS Reporting
Lesson 1
SMS Fundamentals