The U.S. SMS Marketing market size was valued at US$ 6.5 billion in 2021 and is expected to hit US$ 18.6 billion by 2030, growing at a compound annual growth rate (CAGR) of 25.3% from 2022 to 2030.
Growth Factors:
SMS marketing helps organizations eliminate paper costs and denote a fast and convenient means to interact with target customers. Thus, increasing the penetration of SMS marketing across all industries is anticipated to drive the growth over the forecast period. Additionally, the advent of AI-enabled SMS marketing tools that enhance text messaging services is expected to positively influence the growth in the near future.
Click Through Rate (CTR) is an effective performance metric used to understand the effectiveness of a marketing campaign. It helps organizations to gauge the success of a campaign by measuring the number of times a particular advertisement is viewed. According to a report published by Burst SMS, a global online messaging platform provider, SMS has a better average CTR in comparison to any other leading marketing tool. Additionally, text messages also fall better in other parameters such as higher open rate and a lesser number of customer complaints. These benefits, coupled with the better CTR are anticipated to drive the demand for text message marketing over the next six years.
The market is expected to experience considerable growth owing to proliferation of smartphones and increased internet penetration in the country. According to statistics published by the Internet Innovation Alliance, the total number of smartphones in the U.S. in 2016 was 208.2 million and is expected to increase to 270.7 million by 2021. Similarly, as per U.S. Pew Research Center, as of February 2019, 96% of adults in the U.S. own a cell phone, and 81% of them own a smartphone. Studies suggest that text messages have a higher open rate because people always carry their smartphones and tend to open a message as soon as it is received.
Report Scope of the U.S. SMS Marketing Market
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Report Coverage |
Details |
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Market Size in 2021 |
USD 6.5 Billion |
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Revenue Projection By 2030 |
USD 18.6 Billion |
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Growth Rate |
CAGR of 25.3% from 2022 to 2030 |
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Base Year |
2021 |
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Historical data |
2017 - 2020 |
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Forecast Period |
2022 to 2030 |
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Segments Covered |
Enterprise size and end use. |
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Companies Mentioned |
Infobip Ltd.; InMobi, Marketo; Amobee, Inc.; Chartboost; Slick Innovations, LLC; EZ Texting; and IBM Corporation. |
In addition to a high open rate, text messages offer numerous benefits to the marketers such as affordability, no dependency on the internet, and immediate results through 2-way messages. Additionally, text message allows personalizing promotional offers as per target customers. Marketers can include the name of the customer in the beginning or provide offers on particular products that are frequently purchased by a customer. Personalization of marketing content increases the chances of converting a potential customer into an actual customer.
The demand for SMS marketing is also anticipated to gain momentum owing to introduction of AI for analyzing and using customer data to create personalized promotional messages. AI is used for content creation, optimizing content delivery, improving customer engagement, and reducing response time and expenditure. Although AI-enabled tools are not used extensively as of now, certain companies do have AI support for their applications. For instance, Watson Marketing tool by IBM Corporation uses an AI-powered content management system to enhance communication experience of its customers.
One of the prominent factors inhibiting the market growth is the limitation on the number of characters that can be sent in a single text message. According to the U.S. messaging regulation, the standard length for all text messages is 160 characters. Thus, creating content with limited characters while making a strong impact on the viewers can be a challenging task for SMS marketers. In addition to character limitation, dependency on a service provider to receive text messages is another challenge hampering market growth.
End-use Insights
Based on end-use, the market is segmented into retail, media and entertainment, travel, automotive, healthcare, IT and telecom, BFSI, and others. In 2018, the retail segment captured more than 23% revenue share of the market. The high value share of the segment is attributed to rising number of e-commerce retailers that use text messages to inform customers about new offers, upcoming events, order details and status, and the launch of new products. Additionally, increasing implementation of location-based services in the retail industry to deliver an enhanced consumer shopping experience by providing them promotional SMS of offers based on their current location is also expected to positively impact the CAGR over the forecast period.
The media and entertainment segment is anticipated to exhibit a CAGR of 22% from 2019 to 2025. The use of messaging for the promotion of movies, TV shows, events, and others is a primary reason contributing to the growth of the segment. Additionally, growing popularity of two-way messages for SMS voting and SMS polls is also driving the segment. Furthermore, rising adoption of in-app marketing in banks to provide tailored products and service-related content directly to consumers’ mobile devices is expected to boost the growth of the BFSI segment over the forecast period.
Enterprise Size Insights
Based on enterprise size, the U.S. SMS marketing market has been segmented into Small and Medium Enterprises (SMEs) and large enterprises. The SMEs segment is expected to witness a CAGR exceeding 27% as small enterprises are increasingly adopting text messages for promotion owing to cost-effectiveness. The large enterprises segment accounted for the largest share in the market in 2020. The substantial share is attributed to the fact that large companies are increasingly investing in SMS marketing campaigns owing to their benefit of reaching a large audience instantaneously.
Another factor contributing to the high value share of the segment is the use of SMSs in increasing customer engagement. Large brands are increasingly using SMS marketing strategies to keep their customers informed about offers, updates, and other brand activities. Subway, for instance, began its SMS campaign in 2016 and reached over 5 million subscribers by 2020. The effective results of text message promotions are encouraging more and more companies to adopt SMS marketing, which is expected to drive segment growth over the next six years.
While the large enterprises segment accounted for the dominant share of the market in 2020, the SMEs segment is expected to register the highest CAGR over the forecast period. SMEs have also started to invest in SMS marketing activities owing to their affordable yet effective nature. Moreover, SMS prove to be an effective tool for the customer service department to get customer feedback and reviews, which helps improve customer satisfaction. Thus, the affordability and effectiveness of SMS marketing are anticipated to drive the growth of the SMEs segment over the forecast period.
Some of the prominent players in the U.S. SMS Marketing Market include:
Infobip Ltd.; InMobi, Marketo; Amobee, Inc.; Chartboost; Slick Innovations, LLC; EZ Texting; and IBM Corporation.
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at U.S. for the period of 2017 to 2030
Key Points Covered in U.S. SMS Marketing Market Study:
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers