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U.S. SMS Marketing Market Share & Growth, 2025 | Industry Report

U.S. SMS Marketing Market Analysis Report By Enterprise Size, By End Use And Segment Forecasts From 2019 To 2025

Report ID: MN17619972  |  Published: July 2020  |  No of Pages: 63
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The U.S. SMS marketing market size was accounted for USD 3.5 billion in the year 2018. It is projected to witness a CAGR of 20.3% over the forecasted years, 2019 to 2025. The rising usage of mobile phones among the millennial population coupled with the emergence of an SMS marketing strategy for enhancing customer interaction is projected to drive market growth.

SMS marketing also reduces the overhead costs associated with marketing such as paper and labor costs, thereby facilitating convenient and fast means for marketing. Moreover, the discovery of various AI-enabled tools for SMS marketing tools is expected to propel the growth. Further, the usage of CTR (Click Through Rate) technologies for the efficient performance of the marketing campaign is gaining traction across the globe.

U.S. SMS marketing market

A published report by an online messaging service provider named Burst SMS stated that high CTR can be achieved by SMS as compared to other marketing tools. Moreover, text messages have additional features like low customer complaints and an increased open rate. These benefits along with enhanced CTR are projected to boost the demand for SMS marketing.

Along with a higher opening rate, the SMS also offers benefits like no internet dependency, affordability, and quick results. They also offer customized personal offers to target particular customers. This personalization helps in enhancing the chances of converting potential to actual customers.

End-use Insights

The U.S. SMS marketing market can be segmented into media & entertainment, retail, automotive, travel, IT & Telecom, BFSI, Healthcare, and others. In 2018, the retail segment held the largest share of exceeding 23.0% across the market. This can be associated with the rising adoption of such services by retailers for informing about various events and offers associated with their products.

The segment of media & entertainment is projected to register significant growth with around 22% CAGR over the forecasted years. This can be attributed to the surging usage of messaging services to promote events, TV shows, and movies. Moreover, rising popularity about the usage of two-way messaging services for SMS polls and SMS voting is anticipated to drive the market growth.

Enterprise Size Insights

The large enterprise segment held the largest share across the market in 2018. This can be associated with the rising trend towards the implementation of these SMS marketing strategies for customer engagement and the widening of global reach. Moreover, the need for updating customers about brand activities and offers is prevailing among these large enterprises, thereby driving the need for SMS marketing.

U.S. SMS marketing market share

The enterprise segment of SMEs (Small & Medium Enterprises) is projected to register the highest growth rate with more than 23.0% CAGR in the upcoming years. This can be attributed to the rising usage of text messages for the promotion of their products owing to their cost-effectiveness and ease of accessibility.

COVID-19 Impact Insights

The market has been affected positively on account of the ongoing COVID crisis. This can be associated with the fact that is one of the feasible ways for marketing purposes that allows virtual interaction with the customers. Moreover, rapidly increasing usage of smartphones for marketing and entertainment purposes has been on the rise on account of lockdown and imposition of travel restrictions. However, a decrease in the profits of several players in this period has resulted in a reduction of investments for marketing purposes. This is projected to hinder the market growth for SMS marketing to some extent over the post-pandemic period.

U.S. SMS Marketing Market Share Insights

The key players in the market are Amobee, Inc.; InMobi, Marketo; EZ Texting; Chartboost; Infobip Ltd.; IBM Corporation; and Slick Innovations, LLC. These players are constantly engaged in implementing strategies like acquisitions, mergers, and partnerships to gain a competitive advantage. Several local players have started entering the market thereby creating tough competition for the key players.

They are also implementing strategies like acquisitions, mergers, and partnerships to enhance their market share. Also, they are attracting majority of the customers by offering various innovative solutions. For example, TextMagic Ltd. allows integration of text messages with existing business software or applications of the customers.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Country Scope

U.S.

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

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If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth at the country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub segments. For the purpose of this study, Million Insights has segmented the U.S. SMS marketing market on the basis of enterprise size and end use:

• Enterprise Size Outlook (Revenue, USD Million, 2014 - 2025)
    • SMEs
    • Large Enterprises

• End-use Outlook (Revenue, USD Million, 2014 - 2025)
    • Retail
    • Media & Entertainment
    • Travel
    • Automotive
    • Healthcare
    • IT & Telecom
    • BFSI
    • Others

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Ryan Manuel

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