How Much Does SMS Marketing Cost?

SMS marketing is an effective way to reach customers through text messages. It stands out for its high open rates and the ability to deliver timely promotions and updates directly to customers’ mobile phones.

In this article, we’ll explore everything you need to know about this type of marketing, including the costs and how to work out your return on investment (ROI) for your SMS marketing campaigns.

Whether you’re just starting or tweaking your current SMS marketing strategy, we’ve got simplified tips to help you amp up your SMS game.

Looking to implement SMS marketing for your business but worried about the costs? Discover how affordable it can be! Get a customized SMS marketing cost estimate tailored to your needs. Sign up for a free trial or request a demo consultation today!

The Rising Popularity of SMS Marketing

Ad spending in the global SMS advertising market is set to reach $0.79 billion in 2024 and is expected to grow to $0.86 billion by 2028. This shows a steady annual growth rate of 2.15% over four years.

The United States leads this trend, with its ad spending set to spend $310 million on SMS ads in 2024. It also highlights SMS marketing’s growing popularity for businesses looking to reach customers directly.

Text Message Marketing Cost Per Message

The cost per SMS message for marketing usually ranges from $0.25 to 0.50 cents, influenced by the number of messages sent, your service provider, and any extra features you use.

Bulk SMS marketing typically costs less per text and offers savings for large campaigns. Using shortcodes helps get your messages out quickly and allows more people to see and respond to them.

Short codes are easy-to-remember numbers and are great for sending many texts simultaneously. They help spread your message quickly and are perfect for big promotions or crucial updates.

International SMS Messages

International SMS messages cost more due to cross-border fees and different rates set by telecoms across countries.

SMS marketing pricing varies significantly by country and can change with regulatory shifts or mobile carrier fees. If you’re planning to send SMS messages abroad, it’s crucial to:

• Check specific rates for your target countries with your provider.
• Look into any volume discounts for large sends.
• Be aware of potential extra fees, like international service setup charges.
• Make sure you are following the local regulatory guidelines. 

Factors That Influence Text Message Marketing Costs

The cost of SMS marketing depends on a few important factors. Therefore, it’s essential to understand the factors influencing the total SMS marketing cost.

Let’s break it down below to see where your money is going and how to maximize your investment.

Number of Subscribers

The more people you’re reaching, the higher your costs will be. Most SMS platforms charge per message, so each time you send a campaign, every recipient adds to the total cost.

However, the good news is that many platforms, like Textellent, offer discounts for bulk messaging. This means the more messages you send, the lower the cost per message can be.

These savings can add up over time if you send many texts regularly.

Message Volume and Frequency

The size of your subscriber list and how often you send messages play a huge role in your SMS marketing cost.

If you’re running a campaign with daily updates versus bi-weekly or monthly, your costs will reflect that. Consistency is great for engagement, but you’ll want to balance that with budget considerations.

One way to optimize this is by segmenting your audience—sending fewer, more targeted messages to specific groups rather than blasting your entire list every time.

Type of Message: SMS vs. MMS

Are you sending plain text messages, or are you using multimedia like images, videos, or GIFs?

MMS (Multimedia Messaging Service) messages are more expensive than SMS (Short Message Service) messages because they include more data and take up more bandwidth. They can include pictures, videos, or audio, costing more than regular text messages. 

While text message marketing costs a few cents, MMS messages costs can range from a few cents to over 10 cents per message as they use more data and require more storage and processing.

Message Length

When it comes to SMS, size matters! Though SMS messages aren’t limited to 160 characters, they are expected to be direct and concise.

If you go beyond that, your message will be split into multiple texts, which can double or even triple your costs. Platforms count each additional 160 characters as a separate message, so crafting concise, impactful texts can save you money.

Target Audience and Location

Who you’re sending messages to and their location can also affect the cost. Targeting messages to specific groups might initially cost more due to setup, but it’s usually more effective.

Sending messages to people in other countries is more expensive because of higher rates for international messaging. Knowing where your audience is and targeting your messages can help manage these costs.

What is SMS Marketing ROI?

SMS marketing ROI measures how much profit you make from SMS campaigns compared to spending on them. 

It’s important to know if your SMS efforts pay off, as it will guide you in investing in what works best. Plus, it clues you into customer likes, which can help tweak future campaigns.

Steps to Calculate Your SMS Marketing ROI

To calculate your SMS marketing ROI, follow these steps:

1. Total Investment: Add up everything you’ve spent on your SMS campaign, including platform fees and message costs.
2. Revenue Generated: Figure out how much money the campaign made from sales directly linked to your text messages.
3. Net Profit: Subtract your total investment from your revenue. This shows the profit your SMS campaign brought in.
4. ROI Calculation: Use the formula: ROI = (Net Profit ÷ Total Investment) × 100.

This gives you your business ROI as a percentage and will show how effective your investment was.

Comparing SMS Marketing ROI to Other Channels

When evaluating the ROI of SMS marketing to other channels, it’s important to look at costs, engagement levels, and conversion rates:

Email marketing is cheaper and allows for richer content with images and links. However, it suffers from lower open and click rates, and emails can get lost in spam filters.

Social media advertising offers a broad reach and precise targeting based on user data. The costs can vary widely, and users might ignore ads due to overexposure.

Direct mail creates a tangible connection and offers creative branding opportunities. Yet, it’s generally more expensive due to printing and postage, and delivery takes longer.

How to Choose the Best SMS Marketing Solution?

When choosing an SMS marketing platform, focus on these essentials to find a good fit for your business:

• Pricing: Some platforms charge per message, while others have monthly plans. Watch out for hidden costs.
• Scalability: Choose an SMS marketing solution that can grow as your business expands.
• Customer Support: Look for platforms that offer quick and helpful assistance through various channels like email, phone, or chat.
• Integration: It should easily work with other software your business uses, like CRM systems or email platforms.
• Reliability: Incoming messages need to reach your audience without delay. A reliable platform ensures your campaigns run without delays.
• User-Friendly: Your business should opt for a solution that simplifies setting up campaigns and analyzing data.

Save on SMS Costs and Boost Engagement with Textellent

Several factors are necessary when looking for an SMS platform. Fortunately, Textellent ticks all the considerations mentioned above with its unique approach.

Using shared shortcodes (affordable compared to leasing one directly), Textellent automates texting to make advertising and lead generation effortless. Their solution is designed to collect detailed information and engage your clients through personalized SMS drip campaigns.

Textellent’s pre-made templates and media library also help businesses easily send bulk messages and schedules. Using Textellent’s Zapier integration and robust APIs also makes integrating with your existing business tools and calendar simple.

Textellent Pricing Overview

Textellent provides flexible pricing plans tailored to organizations looking to improve their lead generation and marketing strategies, as well as businesses in service-oriented and appointment-centric industries.

You can tap the ‘Select Industry’ feature; from there, you can easily find the plans available for your sector. your costs.

For those in the Accounting and Tax field, Textellent offers a unique calculator to help estimate your costs.

Other industries can choose from set pricing plans:

• Lite Plan: $29/month includes one user and 250 credits.
• Essentials Plan: $49/month comes with one user and 750 credits.
• Standard Plan: $99/month allows two users and provides 2,000 credits.
• Premium Custom Plan: Offers customizable options for users, credits, and additional credits tailored to your business needs.

Cut your SMS campaign expenses in half with Textellent’s efficient texting solutions. Sign up for a free trial or request a demo consultation today!

FAQs About SMS Marketing Costs

Are there additional costs for using a dedicated phone number?

Yes, if you want to use a dedicated long code or shortcode (a 5- or 6-digit number) instead of a shared phone number, there will be additional fees.

Leasing a dedicated shortcode can range from $500 to $1,000 per month, while long codes are generally less expensive but may have lower messaging throughput.

Do providers charge for undelivered messages?

Policies vary by provider. Some may charge for every message sent, regardless of delivery status, while others only charge for successfully delivered messages. It’s important to check with your provider.

What are the hidden costs to watch out for in SMS marketing?

Watch for setup fees, monthly minimums, and extra charges for keywords, short code rentals, or API access. They can all hike up your SMS marketing campaign costs but may be worthwhile depending on the campaign type being created.