SMS Advertising, Explained

Overview: SMS advertising involves sending messages to customers’ mobile devices via SMS or MMS. By sending timely updates, relevant offers and important information directly to opt-in subscribers, brands can engage and calculate ROI more effectively. SMS advertising offers high open rates, real-time delivery and measurable results, especially paired with a cross-channel marketing strategy.

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What Is SMS Advertising and Text Marketing?

SMS advertising and text marketing involve utilizing text messaging (also known as SMS or Short Message Service) for marketing and customer communication purposes. SMS ads are text messages that brands send to their customers’ mobile devices, typically via a vendor like Airship. Customers must opt in before receiving SMS advertising.

Around the globe, companies of all types and sizes tap into the power of mobile phones and the immediacy and efficiency of text messages to communicate with and market to their customers. For consumers, SMS offers a quick and convenient way to receive information and communicate with businesses on their mobile devices. For brands, SMS advertising and text marketing offer an effective way to reach customers at scale with transactional details, news, offers, loyalty program information and more.

SMS messages are generally 160 characters or less. Longer SMS messages are split into separate, subsequent messages. In addition to SMS, companies can also use MMS (Multimedia Message Service) as part of their campaign to send messages that include media, such as GIFs or photos. Learn more about SMS messages through our top ten SMS FAQ selection.

Advantages of SMS Advertising

SMS advertising offers a wealth of benefits for brands wanting to connect with their customers quickly and effectively. The following sections explore the advantages of SMS advertising, highlighting its strengths in supporting marketing strategies.

SMS is Everywhere

Billions of people use text messaging as part of their daily lives, and SMS is growing rapidly as a marketing channel. It’s highly effective. Just about everyone owns a mobile device, and virtually every mobile phone out there supports SMS.

SMS Messages Do Not Require an App

Your customers don’t need to download or set up a mobile app to receive SMS advertising because SMS is native to all mobile devices. And given the ubiquity of texting, there’s no learning curve for customers to receive or engage with SMS messages.

SMS Has Incredible Open, Read, and Response Rates

Research shows that SMS marketing has unparalleled success metrics, making it one of the most engaging channels available to marketers today. Key marketing statistics for SMS include:

98% open rate
90% read rate
45% response rate

SMS is Real-Time

SMS ads can be sent and received almost instantly, giving brands a quick and effective way to reach and communicate with customers in real-time.

SMS is Personal

People use text messages to communicate with friends, family and other acquaintances, which makes SMS a highly personal channel. As a result, it’s important to think through the types of messages you send and avoid turning customers off with irrelevant or overcommunication.

Immediate Delivery

SMS delivers messages instantly, so it’s perfect for flash sales, last-minute promotions and timely updates. It offers real-time messaging, which keeps customers engaged and updated at the most critical moments.

Easy to Track and Measure

SMS platforms provide detailed insights that allow marketers to track open rates, click-through rates and conversions. Tracking this data can help you optimize campaigns for better results.

Types of SMS Advertising Campaigns and Automation

There are several types of SMS ads that brands can use to engage their audiences and meet specific marketing objectives. Below are some of the most common campaign types and their benefits.

Promotional SMS Campaigns

Promotional SMS messages aim to increase sales and drive engagement. Common SMS advertising examples include introducing and promoting products and services or informing customers about sales, special offers and events.

Transactional SMS Campaigns

Transactional SMS messages give customers quick and convenient access to important information such as order confirmations, shipping details or order updates. SMS is also commonly used for account authentication.

Drip Campaigns and Customer Journeys

Automated SMS sequences, such as welcome series and follow-ups, guide subscribers through a personalized customer journey. These types of SMS ads are perfect for nurturing leads, re-engaging inactive customers and building lasting relationships.

Event-Based and Time-Sensitive Alerts

Brands use SMS to send real-time alerts for upcoming events, flash sales or limited-time promotions. These time-sensitive messages generate urgency and drive immediate action, making them a powerful tool in SMS advertising.

Best Practices for SMS Marketing Tools and Platforms

Following SMS marketing best practices is necessary to maximize impact while maintaining compliance. The following practices outline how to get the best results from SMS.

SMS Marketing Platform Compliance

SMS is a highly regulated channel in many markets, including the U.S. and European Union. With the right partners and solutions, brands can be very effective in using this channel within the SMS marketing laws and regulations.

The U.S. Telephone Consumer Protection Act of 1991 (TCPA), the Canadian Anti-Spam Law (CASL) and the EU Directive on Privacy and Electronic Communications (the ePrivacy Directive) all include strict requirements for sending SMS marketing messages. Airship’s SMS solution makes compliance easy for brands and marketers.

Get the Opt-In

Before sending SMS ads, customers must opt-in to receive those messages. This protects consumer privacy and helps prevent spam. Airship simplifies the process of opt-in and opt-out records and reporting for companies looking to use SMS.

Keep it Short

While the maximum message length allowed varies on iOS and Android devices, we recommend prioritizing the most important, actionable part of your message in the first 40 characters.

Time it Right

The immediacy of SMS makes timing even more important than with other marketing channels. While people check email anywhere from a few times a day to rarely, most people check their text messages right away. That’s why it’s essential to consider factors like customer time zones, holidays and local practices when scheduling SMS messages.

Test Your Strategy

As with other marketing channels, SMS messages should be tested, measured and optimized for continual improvement to ensure they are delivering the desired results now and in the future. We can help!

Go Omnichannel

SMS can play a valuable role in delivering a strong cross-channel engagement strategy. SMS and email are the most common combinations, but you can also pair SMS with push notifications or mobile wallets. For more examples, see our SMS Playbook.

Personalize and Segment Your Audience

Use customer data to create targeted segments based on demographics, behavior or purchase history. Sending personalized messages improves relevance and engagement, and enhances the overall effectiveness of SMS advertising.

Use Clear CTAs and Links

Short, actionable CTAs help drive customer action, including short, trackable links in your messages to encourage clicks and monitor engagement. This way, it’s easier to refine and optimize campaigns for maximum impact.

SMS Marketing Platform Costs and Services

The costs and services of SMS marketing platforms vary depending on your business needs. Understanding text messaging service pricing, comparing providers and knowing what to look for in a text messaging platform can help you make the right choice.

Understanding Text Marketing Software Pricing

Most text marketing services charge based on the number of messages you send, with higher costs for images, GIFs and videos. Some allow you to use a pay-as-you-go model, while others bundle services into monthly plans. Determine how you plan to use text marketing to decide which pricing structure works best.

Comparing SMS Marketing Solutions

There are several different SMS marketing services available, depending on the features you’re looking for. Some offer basic text messaging services while others offer automation, segmentation and analytics capabilities. The key is to find a solution that integrates seamlessly with your existing tools and keeps everything streamlined.

Text Marketing Software Selection Criteria

When choosing a text marketing software, look for:

Compliance: Tools for opt-in/opt-out management and data privacy
Automation: Support for campaigns and customer journeys
Analytics: Insights into delivery, engagement and conversions
Integrations: Compatibility with email, CRM and mobile apps
Scalability: Ability to grow your customer base

Text Marketing Platform Use Cases

SMS is an ideal channel for strengthening personal relationships with customers and delivering more convenience with relevant and timely information. Common SMS use cases include:

Onboarding: Deliver transactional emails with CTAs to opt into SMS for promotional messages, enabling frictionless logins with account authentication via SMS.
Welcome Series: Welcome new SMS opt-ins with promotions and sales.
Cross–Channel: Drive the acquisition of new customers to a mobile app with a download link.
Win Back: Use in-app messaging and email to deliver special promotions to customers via SMS opt-in.
Contactless Payment & Coupons: Deliver mobile wallet coupons via SMS for easy downloading.
Loyalty: Support engagement by delivering mobile wallet loyalty cards via SMS.
Cross-Sell & Upsell: Drive SMS opt-ins via email receipts and upgrades or purchases of similar products.
Repurchase: Update customers via SMS of sales and promotions of their favorite products to drive repurchases.

Trends in SMS Marketing Solutions

As technology evolves, so do the capabilities and strategies behind SMS advertising. Companies are adopting new approaches to make their SMS campaigns more engaging and effective. Below are some of the latest trends in SMS advertising that are reshaping how businesses communicate with customers.

The Rise of MMS (Multimedia Messaging Service)

Mallowsets brand to send images, video and audio to make messages more eye-catching and engaging. The rise of MMS is boosting the overall impact of types of SMS ads, offering customers more than just plain text.

Integration with Other Marketing Channels

Many companies are including SMS in their broader marketing strategies by pairing it with email, social media and push notifications. This integration creates seamless, cross-channel campaigns that reach customers at multiple touchpoints.

AI and Automation in SMS Marketing

AI is transforming SMS advertising by enabling smart, automated messaging that adapts to customer behavior. These personalized, real-time communications are more relevant to the customer and prompt action.

SMS for Customer Service and Support

Businesses also use SMS for customer service to provide quick responses, support ticket updates and conduct post-interaction surveys. SMS simplifies communication and delivers immediate value, meeting the growing demand for convenient, real-time support.

Common SMS Marketing Platform Challenges and Solutions

While SMS advertising offers many benefits, it also comes with challenges. Overcoming these obstacles requires a thoughtful strategy and adherence to SMS marketing best practices. Below are common challenges and how to address them.

Managing Unsubscribes and List Fatigue

Maintaining a healthy subscriber list is crucial for any campaign. Respect opt-out requests and carefully monitor your send frequency to prevent list fatigue. Keeping content fresh and engaging will also help reduce the risk of unsubscribes.

Avoiding Message Overload

Bombarding customers with too many messages is a quick way to lose engagement. Focus on quality over quantity and provide relevant content to keep your audience engaged and maintain a positive relationship.

Ensuring Compliance and Data Privacy

Compliance is a top priority in SMS advertising. Following opt-in best practices, providing easy opt-out options and respecting customer data will build trust. Adhering to regulations like the TCPA and GDPR protects both the company and the consumer.

Getting Started With Text Marketing Services

If you’re new to SMS advertising and text marketing, setting up your first campaign can seem daunting. However, launching an effective SMS campaign with the right tools is easier than you might think. Below are some important steps to help you get started.

SMS Marketing Tool Costs and ROI

When budgeting for marketing SMS tools, here are some factors to consider:

Message pricing: SMS charges per message sent, with different rates for plain text, images, GIFs or videos.
Platform fees: Some SMS marketing providers charge monthly or annual fees to cover various features.

SMS marketing drives high open rates with most messages read within minutes. Calculate the ROI of SMS marketing by tracking click-throughs, sign-ups and revenue.

Building Your Text Marketing Subscriber List

A subscriber list is the foundation of any SMS marketing strategy. To grow your subscriber list legally and efficiently, focus on promoting clear value and opt-in incentives:

Opt-in incentives: Offer discounts, exclusive content or early access to sales in exchange for sign-ups.
Cross-channel promotion: Use other marketing channels like email, web or in-app messaging to support your SMS.
Transparency and compliance: Explain what subscribers will receive and make opt-out simple.

Choosing the Right SMS Marketing Platform and Software

Selecting the right platform is crucial for a successful SMS campaign. Look for platforms that offer user-friendly interfaces, compliance tools, analytics capabilities and easy integration with your other marketing software.

Setting Up SMS Marketing Automation

Establish clear objectives for your SMS campaigns, whether you want to boost sales, increase customer engagement or drive traffic to your website. Use KPIs like conversion rates, click-through rates and subscriber growth to measure your success and adjust your strategy as needed.

Strategic Text Marketing Services Architecture

A successful SMS marketing program requires a clear strategy and supporting architecture to drive results. Use customer journey mapping, audience segmentation, planned timing and integration with other channels to build out a powerful marketing strategy.

Customer Journey Mapping via SMS Marketing Tools

Use SMS marketing tools to map touchpoints and keep customers connected with a welcome message for new subscribers, and send follow-up messages to reinforce your brand’s value.

Segmentation and Targeting Strategies

Not every customer resonates with the same message. Use segmentation to group subscribers by demographics, purchase history or engagement. Targeting different segments with tailored offers or reminders can boost SMS open rates and reduce unsubscribes.

Message Timing and Frequency Planning

Customers don’t want to be bombarded with text messages. Use strategic planning to determine the right cadence and ensure messages are delivered when someone is most likely to take action.

Marketing SMS Integration With Other Channels

Don’t operate in silos. Integrate SMS with other channels like email, web or in-app messaging to create a cohesive customer experience. For example, if you notice a website visitor didn’t make a purchase on your website, you can follow up in an SMS message with a personalized offer, encouraging them to pick up where they left off.

You Can Succeed With SMS Advertising

SMS advertising is a powerful tool for businesses to connect with their customers in a personal, immediate and impactful way. By following SMS marketing best practices, companies can deliver relevant, timely messages that engage customers and drive results.

Ready to take your SMS advertising to the next level? Contact Airship today to learn how we can help you create compelling and effective SMS campaigns.

SMS Resources

To learn more about SMS, check out these Airship resources:

SMS Advertising