Despite the rise of instant messaging applications and social media, SMS Marketing continues to be a key strategy for businesses due to its high open rates, immediacy, and broad reach. This channel has proven to be especially effective for direct and personalized communications with customers.
Evolution of SMS Usage in Spain
In Spain, SMS usage has experienced significant fluctuations over the past few decades. According to data from the National Commission on Markets and Competition (CNMC), the number of text messages sent peaked in 2006, with over 13.425 billion SMS. However, with the rise of applications like WhatsApp and Telegram, this number drastically decreased, reaching a low of 1.909 billion in 2015.
Starting in 2016, a resurgence in SMS sending was observed, primarily driven by messages from businesses to customers (A2P, short for Application to Person). In 2021, more than 6.404 billion text messages were sent in Spain, representing a 23.4% increase compared to the previous year. Of these, approximately 85% were business communications, such as notifications, promotions, and verification codes.
Global SMS Volume
Globally, SMS usage has also shown interesting trends. While person-to-person messaging traffic has decreased due to instant messaging applications, the use of SMS by businesses to communicate with customers has remained relevant. According to a report by Analysys Mason, revenue from A2P (Application to Person) messaging services is expected to grow at a year-on-year rate of 5% until 2027, continuing the upward trend observed in recent years.
Notable Open and Conversion Rates
One of the key factors explaining the continued relevance of SMS Marketing is its extremely high open rate. According to industry studies, text messages have a 98% open rate compared to 20% for email. Moreover, 90% of SMS messages are read within the first three minutes, making them an ideal channel for urgent communications and real-time promotions.
Advantages of SMS Marketing for Businesses
- Immediacy: SMS messages are delivered in seconds, allowing businesses to send messages in real-time.
- High Reach: They do not require internet connectivity, making them accessible to any user with a mobile phone.
- Personalization: The ability to send messages tailored to customers’ preferences and behaviors.
- High Conversion Rate: The combination of immediacy and personalization translates into a higher likelihood of response from the recipient.
Conclusion
SMS Marketing remains a powerful and effective tool for businesses seeking direct and efficient communication with their customers. Its ability to adapt to current market needs and its integration with other digital strategies solidify it as an indispensable channel in the landscape of modern marketing.