The popularity of the SMS application has led to an explosion of text message marketing, and the growing trend is not slowing down anytime soon. According to new research, SMS marketing is going to become a $7 billion industry by 2017.
Tech analysis firm Juniper Research recently conducted a series of tests and determined that advertising revenue generated from SMS messaging tactics will hit $7.14 billion annually within five years. The growth of the industry is fueled by several factors. As previously mentioned in this blog, text messages have a far greater response rate than emails and social media messages, but the nature of sending a message to a recipient's phone number is also beneficial.
Phone numbers are typically more private than email addresses. They are not as accessible online and customers are more apprehensive about giving out a number than an email address. Therefore, anyone who does give out a number is more likely to be interested in whatever service is utilizing that information. This increases the chances of a marketing message's success.
Juniper Research representative Charlotte Miller said in a report that these factors, combined with new features businesses can add to their text messages, make marketing via SMS a more favorable option.
"Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers," Miller said. "Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase. Knowing that the recipients of an ad have actively asked to receive it and will in all likelihood open it is also particularly attractive."