SMS campaigns have a 98% open rate, significantly higher than other messaging platforms like Email, which has only a 37% open rate. It also has a 10.66% click-through rate, meaning more people open SMSes and have a better chance of clicking a link after seeing it in SMS. SMS marketing delivers your business agenda to numerous prospects in a short and easy-to-read format.
In 2003, short SMS codes (5 or 6-digit phone numbers) were introduced for businesses to send bulk messages. Unlike group texting, bulk texting lets you privately engage with the recipient without revealing any information about the other recipients. Several software applications and marketing platforms, such as SimpleTexting LLC, and Trumpia, offer bulk SMS service.
With the introduction of short SMS codes, the concept of SMS marketing got attention from the public. In 2005, brands like Nike and Pontiac launched SMS campaigns like Nike’s “Build Your Own Nike Shoe” campaign and the Pontiac G6 model giveaway.
The following information provides a general overview of U.S. SMS marketing requirements and is for informational purposes only. It does not constitute legal advice.
What is SMS Marketing?
SMS marketing, or text message marketing, is a business promotional approach that uses SMS (Short Message Service) for advertising and information. It’s considered one of the most cost-effective ways businesses engage with customers and prospects. In 2024, 80% of companies used SMS marketing for brand awareness, sales, and surveys.
Why Use SMS Marketing for Your Business?
Over the years, with technological advancement, SMS has adapted itself to the marketing trends and given companies results. SMS messaging is accessible and offers many features, making it ideal for efficiently reaching broader clients.
Versatile
Despite its character limitation of 160 7-bit characters, SMS can be precise enough to cater to diverse business goals such as:
- Appointment rescheduling,
- Flash sales, exclusive discounts, and giveaways information
- Reminders,
- Order confirmations
- Shipping updates,
- Tech support,
- Customer feedback and surveys,
- Cancellation confirmations.
Customizable
You can customize SMS to create engaging messages mentioning customer names, order details, and wishing birthdays. Sending customized text messages makes your customers feel valued and taken care of. SMS message marketing strengthens customer relationships, builds brand reputation, and increases customer retention.
Cost-Effective
SMS marketing is relatively affordable compared to traditional handouts and billboards. The chosen SMS service provider, message quantity, and use of features generally decide the cost of any text marketing campaign. You typically have to pay per message, and the pay rate ranges from USD 0.25 to 0.50 cents.
Easily Noticeable
80.5% of people check their SMS notifications within the first five minutes. With most people accessing their SMS inbox, your messages will likely be seen and read. SMS messages are read within three minutes of delivery, ensuring the messages reach the targeted audience and showing the effectiveness of SMS marketing.
Higher Open Rate
A higher open rate means more reach and awareness of your marketing campaign. With 91% of consumers willing to sign up from text messages, businesses can utilize SMS to convert prospects into clients quickly. SMS operates using mobile carriers, which are omnipresent; thus, SMS is also accessible to a larger group of people.
Boost Brand Awareness
SMS marketing increases brand awareness with consistent, personalized, and professional messages. It helps you maintain your brand voice and identity and foster consumer trust and loyalty. Moreover, it increases the chance of your existing customers to promote and recommend your product or service to their circle.
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Is SMS Marketing Illegal?
For businesses operating in the United States, businesses should comply with applicable regulatory requirements for legal texting and calling for business purposes. Key organizations include the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC), while the Cellular Telecommunications Industry Association (CTIA) provides industry best practices followed by many mobile carriers.
In the United States, businesses generally must comply with the Telephone Consumer Protection Act (TCPA) and, where applicable, the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM Act) when conducting SMS marketing. Unlike many other advertising channels, marketing SMS campaigns generally require recipients’ prior consent. Sending promotional bulk SMS without the required consent may violate the TCPA.
A few essential measures you must take while approaching people using SMS marketing are:
- Obtain recipients’ consent before sending marketing SMS messages.
- Provide recipients the option to opt out of your messaging list.
- Send SMS messages during permitted hours, which may vary by state and applicable regulations.
Additionally, SMS marketing laws vary by country, state, and message type, businesses should consult qualified legal counsel before implementing SMS marketing campaigns.
Last legally reviewed: July 2026
Dos and Don’ts of Text Message Marketing
| Do’s | Don’t |
| Because there is a charter limit, write action-oriented text messages. | Unprofessionalism and frequent messaging. |
| Use attention-grabbing words and keep your messages short and simple. | Unnecessary use of abbreviations and slang hampering clarity. |
| Only send important messages like information, discounts, and offers. | Always sending marketing-saturated SMSes with selling intentions. |
| Text as per the time zone of target customers to increase visibility. | Text as per the time zone of target customers to increase visibility. |
Conclusion
SMS marketing gives businesses a fast, direct, and cost-effective way to reach customers. It delivers high open rates, quick visibility, and strong engagement. With the right timing and clear intent, SMS helps brands share updates, drive sales, and build trust. Its flexibility also makes it useful for many goals, from reminders to promotions.
However, success depends on responsible use. Businesses should follow applicable laws, obtain the required consent, and respect customer preferences. When brands send relevant, timely, and personalized messages, SMS becomes more than a marketing tool. It becomes a reliable channel for long-term customer connection and growth.