The state of SMS marketing: Trends and opportunities

As we navigate through 2024 and into 2025, SMS (Short Message Service) continues to be one of the most impactful communication channels for businesses. With rapid technological advancements and evolving consumer expectations, SMS has solidified its place as a key tool in business-to-consumer (B2C) communications. Let’s explore the major trends shaping the SMS landscape, examine the reasons behind its growth, and uncover opportunities that businesses can capitalize on into the new year.

The growth of SMS marketing

The growth of SMS marketing is unprecedented. By 2025, the U.S. SMS marketing industry is expected to reach a market size of $12.6 billion, expanding at a compound annual growth rate (CAGR) of 20.3%​, according to Grand View Research. The driving force behind this growth is the ubiquity of mobile phones—97% of U.S. adults own one, with 85% being smartphones​ (Pew Research). This creates an unparalleled opportunity for businesses to connect with their target audiences quickly and efficiently.

One of the major contributors to this rise in SMS marketing is its cost-effectiveness. Compared to other forms of marketing, SMS offers higher ROI while being both inexpensive and scalable. In 2024, it is forecasted that businesses will send an astounding 2.2 trillion Application-to-Person (A2P) messages. By 2028, this number is projected to grow by 50%, reaching 3.4 trillion, according to Juniper Research.

Consumer trends: SMS as a preferred communication channel

Consumers continue to embrace SMS as a preferred method of communication. According to Statista, texting is the second most-used form of communication, following closely behind phone calls​. Additionally, a staggering 81% of consumers have signed up to receive text messages from businesses, indicating a strong willingness to engage via SMS​ (EZTexting).

Why are consumers so eager to opt into SMS communications? The answer lies in the immediacy and convenience that text messaging offers. Unlike email, which may remain unopened for hours, or even days, SMS messages have an open rate of 98%, with most messages being read within just 90 seconds, according to the CTIA. This makes SMS an ideal channel for businesses to deliver time-sensitive information, promotions, and updates.

Why businesses should prioritize SMS marketing in 2025

The statistics speak for themselves: SMS marketing is a highly effective strategy. While email marketing sees an average open rate of 20%, SMS marketing boasts an incredible 98% open rate. Moreover, it can take up to 90 minutes for someone to open an email, while SMS messages are opened almost instantaneously. For businesses looking to improve customer engagement and drive conversions, SMS is the clear winner.

SMS marketing is not just about quick communication; it also plays a pivotal role in driving revenue. In 2023, approximately 17.4% of online revenue for brands that utilized SMS marketing came from this channel—a significant increase from 12.8% just two years prior, according to Forrester. For many companies, SMS has become a key driver of repeat purchases and higher customer lifetime value.

Looking forward: SMS as a long-term strategy

As more businesses recognize the benefits of SMS marketing, 2024 is shaping up to be a banner year for this communication method. A survey conducted by Forrester reveals that 60% of brands using SMS marketing expect its value to increase over time. Furthermore, nearly 87% of businesses view SMS as critical to their future marketing and customer engagement strategies.

The future looks bright for businesses that invest in SMS marketing. From improved customer satisfaction and higher retention rates to increased revenue, the benefits of SMS are clear. With more consumers willing to engage with brands via text, businesses that fail to integrate SMS into their marketing strategy risk being left behind.

The time for SMS is now

The growth of SMS marketing in 2024 presents a unique opportunity for businesses to tap into a channel that delivers unmatched immediacy, engagement, and ROI. As consumers continue to prefer texting as a communication method, and businesses reap the benefits of higher conversion rates and customer satisfaction, SMS is poised to remain a cornerstone of modern marketing strategies.

For businesses looking to stay ahead of the curve, there’s no better time to prioritize SMS as part of your overall marketing efforts. The trends, data, and projections all point to one conclusion: SMS is not just a communication tool; it’s a powerful driver of growth and success in 2024 and into the new year.