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SMS Marketing – Research Highlights Benefits

The mobiPOST team keeps on top of the latest industry news and information in mobile and digital marketing. A recent article highlights a number of reasons that SMS still deserves a place in a smart marketing mix.

Here are a number of the key points and interesting statistics the article highlighted:

  • Click through and sales conversion rates are much higher than for email marketing and internet display ads.
  • 90% of all text messages are read within three minutes of their delivery, and over 99% of all text messages are read by the recipient.
  • Due to low cost and ease of use – SMS is one of the most popular communication methods in the world.
  • SMS is available in all phone mobile phones sold in Australia straight out of the box with no needed downloads or installations

Although SMS has been used for some time by business and is now nearly a staple communication channel recent research shows that SMS should still cause some excitement.   Its ability to get messages to customers quickly and cost effectively is rarely beaten. SMS is now an essential communication tool.

The texting audience is large and still growing. eMarketer projects that the growth of the global market for ad support of mobile messaging will reach nearly $12 billion in 2011, up from about $1.5 billion in 2006.

“SMS doesn’t get a lot of hype that the flashy apps do, but it works because it provides what all marketers seek — a one-on-one dialogue with a customer,” noted Jack Philbin, co-founder and president of Vibes Media, a mobile marketing company based in Chicago.

Philbin explains that click-through rates (CTRs) and conversion rates for text messaging are much higher than rates for e-mail and Internet display, two channels that win larger percentages of marketing budgets than mobile. The average CTR for text messaging is 14.06%, while the average conversion rate is 8.22%. E-mail brings in an average CTR of 6.64% and an average conversion rate of about 1.73%, whereas Internet display doesn’t even hit the radar with an average CTR of 0.76% and average conversion rate of 4.43%, according to the Direct Marketing Association’s 2010 Response Rate Trend Report.

Another intriguing fact surrounding SMS, and unmatched by any other medium is that according to a whitepaper by Singlepoint “about 90% of all text messages read within three minutes of their delivery, and over 99% of all text messages are read by the recipient,”.  There is no other marketing tool that can claim close to these figures.

See the complete article from Mashable here.



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