Advice and Predictions for the Future of SMS Messaging in 2017
It’s that time of year again. Before Auld Lang Syne plays on New Year’s Eve, most of us look back at the year we’ve left behind. After our reminiscence is over, we look forward at what’s to come. In this blog I follow the same pattern to offer some predictions and advice for making the best use of SMS messaging in the coming year.
A Quick Look Back at 2016
If I had to pick one word to describe the industry and trends of SMS in 2016 I’d have to pick “Growth”. Somewhere around 8 trillion SMS messages get sent each year. That’s a huge number. And even though many personal messages were sent with apps, people prefer SMS for receiving marketing from brands. Millennials have an especially strong preference for text over app marketing.
Not surprisingly, the use of SMS for mobile marketing increased as businesses recognised those preferences. And along with that came some important lessons for everyone who uses SMS marketing. In 2016, the ICO fined seven companies who were using it for direct marketing. All of them relied on some form of third party company that failed to get explicit permission from people on their SMS list. These cases set a precedent that anyone using SMS for direct marketing should follow: It’s your responsibility to verify consent, even if you outsource the work.
Another growth area was application to person (A2P) SMS. Surveys showed that the financial sector lead the trend by offering automated account balances, transaction confirmations and updates. Purchase related A2P, like order confirmation and shipping notices, also became common.
Though many had previously predicted the death of SMS (mostly due to apps), they were all premature. It thrived in 2016, and now the predictions about its future are much different.
Predictions for 2017
The pendulum has swung all the way back to SMS from apps in the predictions I’ve seen for 2017. Some say that app use is declining and point out a “zero download” effect. I’ve seen that claim argued in other sources, but whether app usage is going up or down, there is a consensus that 2017 will be big for SMS.
Many studies say only about 25-30% of marketers are using SMS now (in 2016). That number is expected to grow as more companies expand, or begin, their mobile marketing efforts. It’s been said that by 2025, over 50% of the SMS messages people receive will be marketing from brands. I can’t see that far out, but in the next year more companies will certainly use it. If they use it well, then more people will be getting the messages too.
Another key prediction for 2025 is that the value of the A2P market will grow at 4.4% CAGR and be worth more than £50B. Again, that’s pretty far out, but it only makes sense that more companies would invest in using automated messaging with customers. It benefits everyone by improving the customer experience, and streamlining operations that otherwise would require additional resources.
Sandy Burt, our Operations Director commented on A2P use in 2016, “We’ve noticed that more and more customers are integrating their business systems with us via our SMS API or using off the shelf products that already integrate with us.” He also agrees with the industry experts that 2017 this trend will continue to grow.
Advice for 2017
I asked Sandy what advice he would offer to an organisation that is just starting to use SMS now, or will start next year.
“The first thing I’d recommend to someone looking to start using SMS would be to check out our SMS Buyers Guide, this includes some really important points to consider when choosing an SMS provider. The second would be to think about how it will integrate with your business processes if you can integrate your existing systems with a provider like FastSMS. Then give us a call, we offer a free trial and free advice and have a wealth of knowledge across all industries and from working with organisations of all sizes”.
For businesses that are already using SMS, we can offer support and recommendations on how to use it more effectively in the coming year. We have specific industry guides you can download for free, and our team is able answer any questions you may havhttps://fastsms.co.uk/information/businee.
Related Articles
4 Simple Steps to Staying Compliant When Using SMS Messaging
Yet another company (Quigley and Carter Limited) have been fined by the ICO for not having permission to send SMS messages. In this case, they had outsourced their marketing to a third party who then sent messages on their behalf. So is staying compliant with the regulations regarding SMS messaging so difficult? It doesn’t have to be.
SMS Marketing and Mobile Wallets
In one of my blogs last week, I talked about a marketing study by Vibes and what it said about SMS marketing. This week I wanted to take another look at it from the perspective of the mobile wallet industry, also covered in the report. It turns out there is a strong case for integrating your SMS marketing with mobile wallets. Let’s take a look.
Insights Into The Best SMS Marketing
It’s been said that to be successful at something, you need to find someone that’s already done what you want to do, then emulate them. You don’t need to create or rewrite the rulebook every time. This is true of marketing too. While it’s a creative field, there are tried and true examples of what works. This is why case studies are so important to helping you understand how something like SMS marketing can work for you.
Is Your SMS Marketing Keeping Customers Loyal by Being Fun?
When you think about your SMS marketing campaigns would you label them as fun? Is there any aspect of your SMS marketing or loyalty program that you think customers would call fun? If so, you're going to love what you read in this blog. If not, then you need to read this blog. It turns out that a little bit of fun and games can keep your customers more engaged – and more loyal.
5 Great Easter Marketing Campaigns to Inspire Your SMS Marketing
How a Text Marketer can Learn Valuable Lessons from Long-Form Copywriters
In terms of storytelling, SMS text messaging is probably as far removed from long-form, direct-action copywriting as you could be. However, the SMS marketing writer can still learn a lot of lessons here with regard to overall approach, content and composition.
5 Ways to Build Some Football Fever With SMS Marketing [Infographic]
Can You Use SMS for “Cold Calling”?
Does the thought of cold calling fill you with dread? You might think it would be easier to use SMS messaging instead. And though it’s legal to do so in some circumstances, you might want to rethink using it that way. Read the full blog to find out why.
The Truth About SMS Opt Out Rates
You’ve read all about getting subscribers, the legal and recommended guidelines, and put great offers out to your list. But people still unsubscribe. Should you be worried? Are you doing something wrong? That depends. As the saying goes, you can’t make 100% of the people happy 100% of the time. You will have opt-outs, but whether you have too many is the question you should be asking.
