U.S. SMS Marketing Market

The U.S. SMS Marketing Market size was valued at USD 7.15 Billion in 2022 and is expected to surpass USD 37.45 Billion by 2031, expanding at a CAGR of 20.2% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising penetration of SMS marketing across several industries to draw the attention of consumers regarding products and services available.

The SMS marketing is a type of marketing method for promoting products and sharing information about certain service benefits using text messages (SMS) to consumers. These messages are meant to attract the attention of consumers regarding product offers and other benefits. A wide range of business enterprises use this SMS marketing method as it ensure high engagement rates to the information as compared to other modes such as email. The SMS marketing offers services that reduces the paperwork and its costs as well as allows to easily connect with the target customers.

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Rising use of smartphones and low cost SMS service from telecom companies pave a quick and convenient way to engage with consumers. As per a report, over 81% of the total adult population in the U.S. use smartphone in 2019. To understand the efficiency of a phone marketing method, the click through rate (CTR) is an effective way to measure the performance.

SMS (short message service) holds a better CTR or engaging rate as compared to any other marketing tools, says the report by Burst SMS, one of the global online messaging platform suppliers. Text messages also comprise of some other benefits such as less customer complaints and higher open rate as people generally reach to their smartphones to open an instant message.

Using text message can offer several benefits such as instant results via two-way messages, no internet dependency, and high affordability for promotional campaign. Personalized promotional offers are used in text message by enterprises to draw the attention of targeted customers. This type of personalization marketing method helps convert a potential customer into actual customer.

The advancement of AI-based SMS marketing tools help to improve the customer interaction, optimizing content delivery, content creation, as well as reduce the response time. For instance, to improve the communication experience of customers, Watson Marketing tool by IBM Corp. uses an AI-driven content management system.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing number of smartphone users and rising preference for short message as compared to email is expected to fuel the market growth of the country.

• Rapid growth of the e-commerce, rising online shopping, and wide adoption of the SMS method for transactional purposes with consumers are estimated to boost the market in the coming years.

• Introduction to artificial intelligence (AI) enabled SMS marketing tools, which improves the text messaging services and consumer interaction is offering a key aspect for the market growth.

• Growing adoption of SMS marketing to create personalized promotional messages to influence the targeted consumers is projected to expand the market during the analysis period.

• Limited length of text message up to 160 characters in a single text as per the U.S. regulations is a major restraining factor that may hamper the market growth.

• Several enterprises are largely concentrating on developing systems to ease customer relationship and offering special discounts are presenting numerous opportunities for the expansion of market.

Scope of SMS Marketing Market Report

The report on the U.S. SMS marketing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

SMS Marketing Market Segment Insights

Large enterprises segment is anticipated to dominate the market

Based on enterprises sizes, the market is bifurcated into large enterprises and SMEs. The large enterprises segment held a dominated market share in 2020 and is projected to represent a high CAGR in the coming years owing to the wide use of SMS marketing from big organizations. Rising investment from large enterprises to improve their products advertising through SMS and provide easy interactive interface with the support of smartphones are key factors driving the segment growth.

Meanwhile, the SMEs segment is estimated to account for a robust CAGR surpassing 23.1% as small enterprises are broadly adopting text messages for promoting their products and services due to cost efficiency and high affordability. Several SMEs have started to invest in SMS marketing campaigns especially the emerging local-based e-commerce for promoting their products and offering information about discount and other benefits. The SMS marketing strategies is widely adopted by SMEs to stay connected with their customers and to inform them about the latest updates and offers.

Retail segment is anticipated to account for a large revenue share

Based on end-users, the U.S. SMS marketing market is divided into automotive, healthcare, IT & telecom, media & entertainment, retail, and travel. The retail segment is anticipated to account for a large revenue share of the market during the forecast period owing to the increasing number of e-commerce retailers which are using test messages to update their customers about their upcoming events, launch of new products, latest offers, and other brand activities.

In the retail industry, the application of location-based services is growing rapidly to provide a well-established customers’ shopping experience by offering them promotional SMS regarding attractive offers based on their existing location. This is expected to fuel the segment growth. On the other hand, the media & entertainment segment is expected to expand at a considerable CAGR during the forecast period owing to the increasing popularity of two-way messages for SMS polls and SMS voting for various entertainment events in TVs. Some other main factors contributing to the segment growth include the use of messaging for the promotion of TV shows, various events, and upcoming movies.

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Segments

Enterprise Sizes

• Large Enterprises
• SMEs

End-users

• Automotive
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail
• Travel

Regions

• North America

Key Players

• IBM Corporation
• Amobee, Inc.
• Infobip Ltd.
• Chartboost
• InMobi
• Marketo
• Slick Innovations, LLC
• EZ Texting

Competitive Landscape

Some major players competing in the U.S. SMS marketing market include IBM Corporation; Amobee, Inc.; Infobip Ltd.; Chartboost; InMobi, Marketo; Slick Innovations, LLC; and EZ Texting. These players are actively adopting several business strategies such as mergers, acquisitions, partnerships, and others aiming to improve their product offerings and to grow their market share. The rapid development of services and several inventions of the products along with optimized costs are expected to increase the market.

For instance, in November 2018, Infobip Ltd announced its strategic partnership with Teckst intending to simplify the application of two-way messaging for both companies. Additionally, TextMagic Ltd. announced to provide its customers an SMS API, which integrates text messaging along with the customer’s current business software or application. This helps the customers to send text messages without accessing the portal of seller.