How much does SMS marketing cost? [The Definitive Guide]

SMS marketing is becoming a well-liked and successful method for companies to connect with their customers and clients. In a world where there are more than 7 billion mobile phone users, SMS marketing provides a direct channel of engagement with a sizable audience. However, one inquiry that is frequently asked is, "How much does SMS marketing cost?"

In this article, we'll examine the numerous elements that affect how much an SMS marketing campaign costs as well as the pricing structure of SMS marketing. Additionally, we'll examine the typical cost of SMS marketing and offer pointers for maximising your return on investment. This blog post will provide you a better grasp of the costs associated with SMS marketing and assist you in making decisions, whether you're a small business owner or marketer looking to add SMS marketing to your mix.

What is SMS marketing all about?

Sending text messages to customers and clients for the aim of promoting goods, services, or concepts is known as SMS marketing. It has a higher open rate compared to other marketing platforms, making it a quick and efficient approach to contact a sizable audience in real time.

Sending notifications, updates, reminders, and promotional offers are just a few of the many uses for SMS marketing. Additionally, it's a fantastic tool to increase consumer involvement and loyalty as well as to get their opinions and thoughts.

The fact that SMS marketing is opt-in, or that customers must voluntarily consent to receive messages from a company, is one of its main advantages. This makes it easier to guarantee that the communications sent are pertinent and interesting to the recipients.

Businesses often utilise an SMS marketing platform to manage their campaigns when they first start using SMS marketing. These platforms offer the capacity to segment and target particular audiences in addition to features like message scheduling, reporting, and analytics.

In conclusion, SMS marketing is an economical and successful approach for companies to connect with their clients, increase engagement, and boost revenue. SMS marketing is unquestionably something to take into account whether you're just getting started or looking to diversify your marketing strategy.

So, how much does it cost?

The cost of SMS marketing varies depending on a number of factors such as volume of messages sent, type of message, geographical location, and provider pricing model. On average, businesses can expect to pay around 2-4 cents per message sent through an online SMS platform, with costs potentially rising for larger volume campaigns or messages sent internationally. It's worth noting that the cost per recipient can be significantly lower when sending to a targeted, segmented audience. Ultimately, the cost of SMS marketing can be balanced against the potential return on investment, which can be substantial given the high open rates and engagement of SMS marketing.

Let's look at some other questions next...

Is SMS marketing worth it?

Yes, SMS marketing is unquestionably worthwhile for many firms, to put it succinctly. SMS marketing provides a direct and efficient approach to connect with clients and increase engagement, with open rates as high as 98%. Additionally, it is a cost-efficient marketing channel that enables you to communicate with a huge audience for a relatively small outlay each message sent.

Additionally, SMS marketing can assist organisations enhance customer happiness and customer loyalty while also gathering insightful and useful consumer feedback. It is a flexible marketing tool that may be applied to a number of tasks, including advertising goods and services, providing alerts and reminders, and getting client feedback.

Of course, your unique business objectives and the success of your campaigns will determine the overall worth of SMS marketing. The appropriate plan and execution, however, may make SMS marketing a beneficial addition to your marketing mix and help your company grow and succeed.

Understanding the Cost Structure of SMS Marketing

The price of SMS marketing is made up of a number of expenses, such as platform fees, other costs, and message send costs. Message volume, message type (such as promotional vs. transactional), geographic location, and the provider's pricing plan can all affect the cost per message delivered.

The expenses related to sending a single SMS message to a recipient are known as message send costs. Depending on the supplier and the volume of messages delivered, this price may change.

Platform costs are what the SMS marketing platform charges for use of its features and services. These charges may be in the form of a yearly or monthly subscription fee or a charge determined by the number of messages sent.

Setup fees, SMS gateway fees, and additional fees for premium features like message scheduling and reporting are possible additional expenditures.

It's crucial to compare prices between service providers and take into account the whole spectrum of fees associated with SMS marketing when assessing its expense. Businesses may choose the best option for their demands and budget by being knowledgeable about the cost structure of SMS marketing.

Overview of different cost components

SMS marketing costs include a variety of outlays, including platform fees, other costs, and message send fees. The cost per message delivered might vary depending on message volume, message type (such as promotional vs. transactional), geography, and the provider's pricing strategy.

• Message send costs - The charges incurred while sending a single SMS message to a recipient. This fee may vary depending on the supplier and the quantity of messages delivered.
• Platform costs - For utilisation of its features and services, the SMS marketing platform charges platform prices. These fees could take the shape of a yearly or monthly subscription fee or a price based on the volume of communications transmitted.
• Other charges - Possible additional costs include setup fees, SMS gateway fees, and additional costs for premium features like message scheduling and reporting.

When estimating the cost of SMS marketing, it's critical to compare costs amongst service providers and take into account all applicable fees. Knowing the pricing structure of SMS marketing will enable businesses to select the best choice for their needs and budget.

Message send costs

The expenses related to sending a single SMS message to a recipient are known as message send costs. Depending on the supplier and the volume of messages delivered, this price may change.

Businesses who send a lot of communications may find that the cost per message is cheaper because to volume discounts. Businesses that send fewer messages, however, might have to pay a higher per-message fee.

To get the best bargain, it's crucial to examine the cost per message among several carriers. Pay-as-you-go plans are available from some carriers, although monthly subscription plans with a predetermined amount of included messages are also available.

Businesses should budget anything between 1 and 10 cents every message sent. The provider, the quantity of messages being delivered, and the receivers' locations will all have an impact on the precise cost per message, among other things.

The costs associated with sending messages should be taken into account as a major component when estimating the cost of SMS marketing. Businesses may make educated decisions and select the best option for their needs and budget by being aware of the costs involved.

Platform costs

Businesses will pay platform expenses for using an SMS marketing platform in addition to the cost of delivering individual SMS messages. For access to its services and features, the platform provider levies these fees.

Platform expenses may be expressed as a yearly or monthly subscription charge or as a fee determined by the number of messages exchanged. Some service providers give a basic plan that is free or reasonably priced, but charge extra for services like message scheduling and reporting.

When assessing the price of SMS marketing, it's crucial to pay close attention to the platform fees. A cheaper platform could be alluring, but it might not provide the capabilities and functionality required to manage an SMS marketing campaign successfully. A more expensive platform, on the other hand, might provide a greater range of services, but it might not be necessary for a small business with modest SMS marketing requirements.

It's crucial to take into account the cost structure, the services provided, the provider's reputation, and customer support when selecting an SMS marketing platform. Businesses can select the best option for their needs and budget by taking the time to compare various platforms and comprehend the costs involved.

Other charges

SMS marketing may be connected with additional fees in addition to message send costs and platform fees.

These may consist of:

• Setup costs: To create an account and begin using SMS marketing, certain providers may charge a one-time fee.
• SMS gateway costs: In addition to the price of sending each individual message, some providers may charge a fee for utilising their SMS gateway to transmit messages.
• Advanced features: Some providers may charge extra fees for sophisticated functions like message scheduling and reporting, as well as for the use of their API for unique integrations.

When assessing the price of SMS marketing, it's critical to take these extra costs into careful consideration. While some providers may advertise a low-cost solution, the additional costs that are not disclosed up front might have a significant impact on the solution's overall cost.

Reviewing all prices, including any supplementary fees and levies, is crucial when selecting an SMS marketing platform. Businesses may make educated selections and select the best option for their demands and budget by comprehending the entire pricing structure.

Average Cost of SMS Marketing

What does SMS marketing actually cost, then? The amount of messages delivered, the type of message, the receivers' locations, and the provider's pricing structure are only a few of the variables that influence the answer.

This section will examine the typical cost of SMS marketing and offer some suggestions on what companies might anticipate spending. We'll also look at how much other sorts of providers—including conventional carriers, online SMS platforms, and hybrid models—charge.

Businesses may choose the best option for their demands and budget by being educated about the average cost of SMS marketing.

The costs across different providers

Depending on the supplier, the cost of SMS marketing might change dramatically. Different providers provide various pricing tiers and fees. Among the most common categories of providers are:

• Traditional carriers: This includes significant mobile carriers that provide both mobile phone and SMS marketing services, like AT&T and Verizon.
• Online SMS platforms: These are businesses that specialise in SMS marketing and offer a variety of SMS marketing services and capabilities, such Twilio and Clickatell.
• Hybrid business models: Examples include Plivo and Nexmo, which provide both traditional carrier services and internet SMS platform services.

It's crucial to take into account the complete spectrum of costs when comparing prices across different providers, including message send costs, platform fees, and other expenses. Additionally, each provider's features and functionality, as well as their standing and customer service, should be taken into account.

Depending on the provider and the volume of messages being delivered, organisations may typically anticipate paying anywhere from 2 to 10 cents each message sent. To discover the best offer, it's crucial to check prices among different suppliers because the exact cost will depend on a number of variables.

Consider choosing Snapi SMS for your SMS API

At Snapi SMS, our SMS pricing is simplified into regions and credits. Simply sign-up, create an API key and top-up credits to start sending SMS messages globally.

Traditional carriers

In addition to providing mobile phone services, traditional providers like AT&T and Verizon also provide SMS marketing services. Businesses often pay for each message sent through these providers, who typically offer a pay-as-you-go basis.

The price per message sent via a traditional carrier can change based on the volume of messages delivered and the recipients' locations. Businesses can typically anticipate paying between 4 and 10 cents each message delivered through a standard carrier.

Utilizing a regular carrier for SMS marketing has a number of benefits, including the established infrastructure and assistance provided by the provider. Traditional carriers, however, might not provide the same selection of features and capabilities as online SMS platforms, and thus might not be the ideal option for companies with more intricate SMS marketing requirements.

It's critical to carefully analyse and contrast the costs associated with using a typical carrier for SMS marketing. This might make it easier for companies to select the best option for their requirements and financial constraints.

Online SMS platforms

Online SMS systems that focus on SMS marketing, including Twilio and Clickatell, provide a variety of tools and services. These platforms often provide a number of price options, such as pay-as-you-go and monthly subscriptions, where businesses can choose to pay a set monthly charge or per message sent.

Depending on the volume of messages sent, the type of message, and the receivers' locations, the cost per message sent using an online SMS network can change. Businesses should budget between 2 and 4 cents on average every message sent using an online SMS platform.

The variety of features and functionality given by an online SMS platform, such as message scheduling, reporting, and analytics, as well as the capacity to segment and target particular audiences, is one of its key benefits. Additionally, online SMS platforms frequently provide a more adaptable and affordable alternative for companies with modest SMS marketing requirements.

It's crucial to carefully analyse the prices associated with the platform and evaluate them against those of other providers before selecting one for online SMS. This might make it easier for companies to select the best option for their requirements and financial constraints.

Hybrid models

Hybrid models, like Plivo and Nexmo, provide services for both traditional carriers and online SMS platforms. These service providers provide a variety of features and functionality along with the benefits of both traditional carriers and online SMS platforms, including well-established infrastructure and support.

Depending on the amount of messages sent, the type of communication, and the receivers' locations, the cost per message sent using a hybrid model can change. Businesses should budget 2 to 8 cents on average every message delivered using a hybrid strategy.

It's crucial to thoroughly examine the costs associated with a hybrid model for SMS marketing and evaluate them against those of other suppliers. This might make it easier for companies to select the best option for their requirements and financial constraints.

To sum up, hybrid models provide a versatile and affordable option for companies seeking the advantages of both conventional carriers and internet SMS platforms. Hybrid models can be a wonderful option for companies with a variety of SMS marketing demands because they have a wide range of features and capabilities, as well as a well-established infrastructure and support.

Maximizing ROI through SMS Marketing

SMS marketing has the potential to offer substantial returns on investment, but in order to achieve this, campaigns must be carefully planned and carried out. In this section, we'll look at various methods for maximising the return on investment from SMS marketing, including targeted message, regular measurement, and analysis.

Businesses can maximise their profits and get the most out of their SMS marketing campaigns by adhering to these best practises and adopting a strategic strategy. This area will offer helpful insights and recommendations for increasing ROI, whether you're just getting started with SMS marketing or trying to optimise your current efforts.

How do you calculate ROI for SMS?

Understanding the efficiency of your campaigns and figuring out the worth of your investment requires you to calculate the return on investment (ROI) for SMS marketing. The ROI calculation formula is as follows:

ROI is calculated as (Revenue earned - SMS marketing cost) / SMS marketing cost.

You must figure out the revenue from your SMS marketing campaigns as well as the cost of SMS marketing in order to calculate ROI. This covers platform fees, any additional costs related to your campaigns, and the price of sending each individual SMS message.

When you have this data, you can use the ROI calculator to determine the return on your investment. You'll be able to assess the general efficacy of your SMS marketing initiatives and estimate the return on your investment thanks to this.

It's important to keep in mind that calculating ROI is not a precise science and that there can be extra expenses and advantages that are not accounted for by the calculation. However, measuring ROI can still give you useful information about the success of your SMS marketing initiatives and assist you in choosing an efficient marketing plan.

Strategies to reduce the cost of your SMS Marketing campaigns

Although SMS marketing can be a cost-effective and efficient way to connect with clients and boost sales, the expense can quickly mount. Here are some methods for lowering SMS marketing costs:

• Segment and target your audience: You can lower the cost of SMS marketing by sending fewer messages to a more focused audience by focusing on certain segments of your audience.
• Utilize a pay-as-you-go system: By charging you only for the texts you send, a pay-as-you-go model can help you save money. For companies with modest SMS marketing requirements, this may be a cost-effective alternative.
• Compare rates between providers: Since SMS marketing costs can vary greatly across providers, it's critical to compare prices between providers to get the best option for your requirements and budget.
• Use a shared short code: For companies with modest SMS marketing requirements, a shared short code can be a cost-effective alternative. By splitting the expense of a single short code among several companies, shared short codes lower the cost per message transmitted.
• Choose a monthly membership: For companies that send a lot of communications each month, a monthly subscription can be a cost-effective option. Businesses can take advantage of volume reductions and lower prices per message sent with a monthly subscription.

Businesses can minimise the cost of SMS marketing and optimise their profits by implementing these strategies and adopting a strategic strategy. These tactics will help you cut costs and maximise your investment, whether you're just getting started with SMS marketing or trying to improve your current efforts.

Read our in-depth list of strategies for reducing SMS marketing costs which is associated to this article.

Conclusion

In conclusion, SMS marketing is an affordable and successful approach to connect with customers and increase sales, but it's crucial to carefully consider the costs associated with this strategy and select the ideal option for your needs and budget.

SMS marketing may maximise the value of a company's marketing efforts and provide significant returns on investment with the proper strategy. Businesses may get the most out of their SMS marketing campaigns and meet their marketing objectives by being aware of the costs associated with them, comparing pricing across different providers, and adhering to best practises for cost-cutting.

This article offers helpful insights and recommendations for maximising your investment and results, whether you're just getting started with SMS marketing or trying to optimise your current campaigns. So why not try SMS marketing for yourself and evaluate the results?