Is Text Message Marketing Affordable

Increasingly, it seems that question should be re-stated to “Can we afford NOT to be Text Message Marketing”.

Using Australian email, SMS and MMS actual costs, and then factoring in the cost of labour involved in sending an email vs a Text Message (either SMS and MMS) –  you’ll get to more eyeballs at a lower cost sending  SMS and MMS’s  than sending email. This chart is predicated on the success of your SMS and MMS campaign, open rates and conversion – we can guarantee that these quoted open rates are conservative compared to what we have seen in operations in Australia over the last 5 years. However, it has to be stated that a badly executed SMS or MMS campaign can cost a lot more than a badly executed email campaign – and because of this risk – we recommend working with leaders like MobileDigital when embarking on your Text Message Marketing campaigns,

Text Message Marketing is way past the tipping point – and will be the ultimate channel to the consumer.   US companies in 2021 are reporting that over 18% of their online revenues are now being generated from Text Message Marketing (TMM), and that they receive over $71.00 for every dollar invested in TMM. That $71.00 return is almost double the long repotted thirty something dollars per dollar spent on email.  In growth terms –  the US marketers are moving very quckly to get into this new channel – that was previuously just used for calendat reminders, delivery advice and 2 factor authentication of online transactions and passwords.  Since 2016, the numbert of companies in the US using TMM has grown from 4% to 50% –  so this is more than a trend –  it is a permananet shift to a much more mobile text based future.

If Joe Hall from the UK’s MobileSquared is correct we are in for a  very exciting internet vs point to point addressable mobile number driven  message delivery.

Historically SMS messages have served the purpose of deloivering  government warnings, reminding us about appointments, updating us on delivery status of ordered goods or delivering us a code to authenticate an online transaction.   Some retailers are now including SMS messaging to remind you that you have left items in your shopping cart.  It is highly likely that the text messaging channel  including static brand imagery, moving .gif images and video will become very useful to retailers seeking a closer and more engaged relationship with their mobile client.

Text message marketing includes the use of SMS (Short Message Service) as well as the inclusion of MMS (multimedia messaging service).   MMS delivery  technology enables organisations to deliver personalised branded images, .gif moving images as well as tailored video messaging direct to customers mobile handset text inbox – enabling brands to put their brand and messaging in their customers hand.

Using text messaging software like MobileDigital’s SNIPERMobile SaaS platform,  personalised branded visuals and messages can be delivered instantly to an always on audience, with 98% of messages are seen and over 90% are opened within three minutes.

With text Message Marketing – the messagging APP is native to the phone.  Your customers are not required to download an APP, and your message is delivered to their phone number with  delivery guaranteed by the telecommunications companies.  Text Message Marketing is instant, putting a friction free call to action out there or offering clients the opportunity to commence a 2WAY chat exchange using conversational commerce or concierge tools.

Text message marketing is a win win for retailers and consumers. Data from multiple surveys now indicates that over 90% of the population would prefer to deal with an organisation using text in preference to email or a phone call.   Retailers stand to benefit as SMS and MMS messages are the ultimate channel to their clients. are seeing results that are superior to prior investments in SEO, social campaigns or email.

Vendors implementing TMM campaigns have reported 19.8% conversion from a list of people who had registered interest but never purchased.

Another reported over 16% reactivation of clients inactive for over 6 months and earlier in 2021 a large Australian apparel chain reported a revenue lift 21x their promotional investment compared to their email segment comparison.

There is no doubt with these results that retailers should make space in their marketing budget for TMM.

It is important that retailers need to be aware that whilst TMM is the ultimate channel to the consumer a number of key considerations need to be taken on by marketers before employing TMM in your organisation.

A US study by Forrester commissioned by Attentive in January 2021 reported that 64% of companies don’t understand TMM, 51% are concerned by regulatory issues, 36% were not sure it would resonate with their clients and 30% said they had no budget.

Text message marketing is a new channel that done well delivers incredible results. However, many marketers have come to think of email as free – and TMM is ROI business decision as both SMS and MMS messages cost per message sent.

The upside of TMM is great conversion, better engagement and strong brand enforcement and memory.

Marketers will need to experiment with TMM to see what works for their clients, and not all initial campaigns will work as learnings will develop through trials.

TMM is an exciting new channel with great upside for retailers.

We recommend marketers start with onboarding campaigns, loyalty and reward messaging as well as specific targeted sales campaigns to clearly defined segments – if you like to discuss more in detail please reach out to



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