SMS Marketing Statistics 2024: Key Trends and Insights for Effective Campaigns

These days, SMS usage has increased drastically. Gen-Z and millennials prefer texting, so you must keep yourself updated on the latest SMS marketing statistics as a business owner.

This article lists the statistics, key trends, and insights for SMS marketing in 2024. To create this report, we have researched many resources and consulted various SMS marketing reporting tools.

So, read this comprehensive guide and based on the statistics, you can decide which effective SMS marketing strategies and campaigns will work best for your target audience.

How Big Is the SMS Marketing Industry?

2/3 of the population of the world uses SMS, so each business can access 2/3 of the world's population by sending them relevant text messages. 

Short message service (SMS)  was first introduced in 1980, and over the years, the industry has shown massive growth. Today, SMS is adopted by almost all businesses globally, and it effectively touches all aspects of the customer's lives.

Not convinced?

Here is the proof.

• The US SMS industry's market value is expected to reach around $12.6 billion by the end of 2025.
• The SMS market will increase because mobile users are expected to reach approximately 7.5 billion in 2025.
• Around 65% of the global population uses SMS. It clearly indicates that businesses can directly access the 2/3rd population of the world.
• According to predictions, the SMS market will grow at an average growth rate of 20.3% by the end of 2025.

Here are a few reasons why you must include SMS marketing in your overall marketing strategy.

Why Should You Integrate SMS Marketing into Your Overall Marketing Strategy?

Consumers have low attention spans in the social media energized era. Therefore, grabbing your consumers' attention is a must if you want to skyrocket your business ROI, and SMS marketing can help you up your business marketing game. Using SMS, you can engage your customers regardless of their location. You can run an SMS campaign to gather feedback, give reminders about important events, offer VIP sale access to consumers, or encourage them to complete the purchase after adding items to the shopping cart.

In the last decade, SMS marketing has grown remarkably by maintaining its popularity as a direct, personal, and effective marketing channel.

The following general SMS marketing statistics show SMS marketing is effective.

• SMS has a 45% response rate, which is 9x the email.
• 42% of consumers love to receive promotional offers through SMS because it is fast and easy to access.
• SMS marketing has a 19% average click-through rate.
• Approximately 75% of consumers prefer to receive special offers via SMS.
• Two-way text messaging can improve business efficiency by almost 80%.
• As per the study, the SMS delivery rate is 98%
• US consumers prefer SMS over calls for customer service.

Therefore, we recommend you include SMS marketing in your overall marketing strategy.

Why is it important to stay updated with the current SMS marketing statistics?

Understanding and using the current statistics is the building block of successful marketing strategies. These statistics help you create marketing strategies that perfectly align with the customer's requirements. Today, we live in a dynamic world where using outdated information can be the reason for ineffective campaigns, missed opportunities, and wasted resources.

Staying informed about the latest SMS marketing statistics can help you optimize your campaigns according to the evolving preferences of your target audience. It will provide you with higher engagement, customer satisfaction, and conversion.

As per Grand View Research, the SMS marketing market in the US will be worth $12.6 Billion. Don't you think it is more than enough to stay updated with the SMS marketing statistics for 2024 and use it wisely to craft effective campaigns?

If you are still unsure, check out a few key text message marketing statistics.

Key SMS Marketing Statistics

• As per the study, coupons that are texted through SMS are redeemed ten times more often than traditional coupons. A survey shows that 32% of SMS recipients respond to the SMS offers.
• Approx 80% of businesses utilize SMS marketing software to send messages to their consumers, and around 70% increase their text message marketing budget in 2024.
• The report shows that businesses sending text messages for the follow-up of emails increase the open rate of email by 20% to 30%.
• More than 85% of businesses found text marketing a useful strategy for digital marketing success.
• 75% to 78% of customers prefer to talk with a business via SMS rather than a phone call.
• Businesses that send text messages can experience an open rate of 98% for an SMS campaign, which is five times that of an email.
• In 2024, 79% of consumers have opt-in to receive text messages from businesses, which increased 11% from last year.
• 58% of customers say businesses should use SMS to reach them quickly.
• In 2024, businesses are expected to spend around $790 million globally on SMS marketing.
• Most US companies prefer investing in SMS advertising, which makes up around 40% of the total SMS ad spend. 

Here are some more stats that are more than enough to convince you to use SMS to engage your consumers.

Overview: SMS Marketing Adoption in 2024

In 2024, SMS marketing adoption has increased. Approximately 65% of businesses across various industries have opted for SMS in their overall marketing strategies. It shows the massive growth from 2021-22. In 2022, only 45% of businesses were using SMS marketing, which increased to around 55% in 2023. In short, we are seeing a constantly upward trend in SMS marketing adoption. 

Which Industries are leading in SMS Marketing Adoption?

The retail sector is the leading adopter of SMS marketing. Almost 80% to 85% of retailers use text messages to communicate with customers. The leading adopters of SMS marketing are healthcare, e-commerce, and real estate. Why? This is because text messaging is personal, simple, direct, cost-effective, and immediate, so businesses can provide reminders, timely updates, and personalized offers to their audience.

Here are a few key SMS marketing Statistics by Industry.

SMS Marketing Statistics by Industry

• 50% of the e-commerce sector uses SMS to advertise their promotional offers.
• Approximately 47% of customers believe that the retail industry is the major user of SMS among all other sectors.
• Retailers can expect a 25x ROI  if they use SMS marketing.

The following table shows SMS marketing statistics by different industries. The data is taken from this source. 

Retail & E-commerce, healthcare, and real estate are the top three industries that will benefit from SMS marketing in 2024. Retailers can use SMS to drive sales through personalized offers and promotions. The healthcare industry can use SMS to give patients health alerts, tips, and appointment reminders. The real estate industry generally uses SMS to quickly communicate with potential buyers/renters by offering them quick updates on market trends and listings.

Here are a few statistics that show how different businesses utilize SMS.

• Approximately 26% of businesses use SMS to send their consumers promotional discount offers. It keeps its customers updated.
• About 63% of companies utilize SMS to schedule customer appointments to cut down on no-shows.

Still not convinced? Here are a few more eye-opening text message marketing statistics you should know.

Case Study: Domino’s Pizza 

Domino’s Pizza is a popular pizza brand that has used SMS marketing effectively and cut down its cost per acquisition to 15 cents. It was not able to boost its ROI through video ads or TV, but through common short codes and advertising a few keywords through SMS, it succeeded in cutting down its CPC to 15 cents. 

Consumer Engagement With SMS Marketing

How do Consumers Typically Engage with SMS Marketing Messages?

Generally, SMS offers an impressive open rate of 98%. Its click-through rate is between 19% and 35%, which highly depends on the text message content and industry. With text messaging, businesses can expect an almost 15% conversion rate, which is quite high. It makes SMS one of the most effective digital marketing channels. Due to its immediate nature, SMS is vital in improving engagement. As per the study, 90% of the messages are read by consumers within 1 to 3 minutes of receipt.

We have even noticed changes in the engagement patterns from previous years. In 2024, customers are increasingly preferring text messages that offer immediate value, like exclusive deals, flash sales, or time-sensitive information. The shift in the trend shows that more and more businesses should focus on delivering high-quality and relevant content in their SMS campaigns.

What Demographics are Most Responsive to SMS Marketing?

The study shows that Gen Z has the most spending power worldwide, approximately $450. It is estimated that by the end of 2025, they will comprise almost 27% of the workforce. That's why businesses should focus on them for their business growth.

In 2022, approx 44% of US Gen Z consumers liked being contacted by brands via SMS. In 2023, the phone usage of Gen Z has increased by around 82%. All these data show that Gen Z and millennials are more responsive to text message marketing, with about 85% and 78% engagement rates. The reason behind it is simple – these age groups prefer the convenience and immediacy of text messages over other communication channels.

You can do demographic segmentation based on the following factors.

• Age
• Gender
• Income
• Education
• Occupation
• Geographic Location
• Nationality
• Marital Status

If we look at it from a geographical perspective, then urban and suburban customers show a high engagement rate because they lead a hectic lifestyle. SMS's quick and direct nature perfectly aligns with them.

SMS Marketing Statistics By Consumers' Preferred Channels for Receiving Brand Updates

Source

 SMS Marketing Statistics By Age

Text message marketing can benefit your business whether the target audience incorporates adults, parents, or children.

The following SMS marketing statistics 2024 show which age group responds quickly to SMS.

• The average person sends approximately 3 SMS per hour. So, a total of 72 SMS per day. Adults under 45 years receive almost 85 SMSs per day.
• 97% of teens have mobile phones, and they use SMS actively.
• Approximately 23 to 27 billion messages are sent per day.