Marketing through cellphones
SMS (Short Message Service) became increasingly popular in the early 2000s in Europe and some parts of Asia when businesses started to collect mobile phone numbers and send wanted (or unwanted) content. On average, SMS messages have a 98% open rate and are read within 3 minutes, making them highly effective at reaching recipients quickly. Over the past few years, SMS marketing has become a legitimate advertising channel in some parts of the world. This is because, unlike email over the public internet, the carriers who police their own networks have set guidelines and best practices for the mobile media industry (including mobile advertising). The IAB (
Interactive Advertising Bureau) has established guidelines and is evangelizing the use of the mobile channel for marketers. While this has been fruitful in developed regions such as North America, Western Europe and some other countries, mobile SPAM messages (SMS sent to mobile subscribers without a legitimate and explicit opt-in by the subscriber) remain an issue in many other parts of the world, partly due to the carriers selling their member databases to third parties. In India, however, the government's efforts to create the National Do Not Call Registry have helped cellphone users stop SMS advertisements by sending a simple SMS or calling 1909. Mobile marketing approaches through SMS have expanded rapidly in Europe and Asia as a new channel to reach the consumer. SMS initially received negative media coverage in many parts of Europe for being a new form of spam as some advertisers purchased lists and sent unsolicited content to consumer's phones; however, as guidelines are put in place by the mobile operators, SMS has become the most popular branch of the Mobile Marketing industry with several 100 million advertising SMS sent out every month in Europe alone. This is thanks in part to SMS messages being hardware agnostic—they can be delivered to practically any
mobile phone,
smartphone or
feature phone and accessed without a
Wi-Fi or mobile data connection. This is important to note since there were over 5 billion unique mobile phone subscribers worldwide in 2017, which is about 66% of the
world population. However, nowadays, the mobile phone has become a focal device in people’s lives, and many people cannot live without it. These advanced mobile technologies bring people more business opportunities that connect business people and consumers at any time and place. Because of this, digital marketing has become more essential, and mobile marketing is one of the newest digital marketing channels that people are considering; it can get information about the features of goods that people like without the need for buyers to go to the actual store. SMS marketing has both inbound and
outbound marketing strategies. Inbound marketing focuses on lead generation, and outbound marketing focuses on sending messages for sales, promotions, contests, donations, television program voting, appointments and event reminders. There are five key components to SMS marketing:
sender ID,
message size,
content structure,
spam compliance, and
message delivery.
Sender ID A sender ID is a name or number that identifies who the sender is. For commercial purposes,
virtual numbers,
short codes, SIM hosting, and custom names are most commonly used and can be leased through bulk SMS providers.
Shared virtual numbers As the name implies, shared virtual numbers are shared by many different senders. They're usually free, but they can't receive SMS replies, and the number changes from time to time without notice or consent. Senders may have different shared virtual numbers on different days, which may make it confusing or untrustworthy for recipients depending on the context. For example, shared virtual numbers may be suitable for 2-factor authentication text messages, as recipients are often expecting these text messages, which are often triggered by actions that the recipients make. But for text messages that the recipient isn't expecting, like a sales promotion, a dedicated virtual number may be preferred.
Dedicated virtual numbers To avoid sharing numbers with other senders, and for brand recognition and number consistency, leasing a dedicated virtual number, which are also known as a long code or
long number (international number format, e.g. +44 7624 805000 or US number format, e.g. 757-772-8555), is a viable option. Unlike a shared number, it can receive SMS replies. Senders can choose from a list of available dedicated virtual numbers from a bulk SMS provider. Prices for dedicated virtual numbers can vary. Some numbers, often called Gold numbers, are easier to recognise and, therefore, more expensive to lease. Senders may also get creative and choose a
vanity number. These numbers spell out a word or phrase using the keypad, like +1-(123)-ANUMBER.
Short codes Shortcodes offer very similar features to a dedicated virtual number but are short mobile numbers that are usually 5-6 digits. Their length and availability are different in each and every country. These are usually more expensive and are commonly used by enterprises and governmental organizations. For mass messaging, shortcodes are preferred over a dedicated virtual number because of their higher throughput and are great for time-sensitive campaigns and emergencies. In Europe, the first cross-carrier SMS shortcode campaign was run by Txtbomb in 2001 for an
Island Records release. In North America, it was the
Labatt Brewing Company in 2002. Over the past few years, mobile
short codes have been increasingly popular as a new channel to communicate to the mobile consumer. Brands have begun to treat the mobile shortcode as a mobile domain name, allowing the consumer to text message the brand at an event, in-store and off any traditional media. Short codes provide a direct line between a brand and their customer base. Once a company has a dedicated short code, they are able to directly message their audience without worrying if the messages are being delivered, unlike long code D.I.D.s (
Direct Inward Dial, another term for phone number). Whereas long code texts face a higher level of scrutiny, short codes give you unrivalled throughput without triggering red flags from the carriers.
SIM hosting Physical and virtual SIM hosting allows a mobile number sourced from a carrier to be used for receiving SMS as part of a marketing campaign. The SIM associated with the number is hosted by a bulk SMS provider. With physical SIM hosting, a SIM is physically hosted in a GSM modem and SMS received by the SIM are relayed to the customer. With virtual SIM hosting, the SIM is roamed onto the Bulk SMS provider's partner mobile network and SMS sent to the mobile number are routed from the mobile network's SS7 network to an SMSC or virtual mobile gateway, and then onto the customer.
Custom sender ID A custom sender ID, also known as an
alphanumeric sender ID, enables users to set a business name as the sender ID for one-way organization-to-consumer messages. Custom sender IDs are only supported in certain countries and are up to 11 characters long, and support uppercase and lowercase
ASCII letters and digits 0-9. Senders are not allowed to use digits only as this would mimic a shortcode or virtual number that they do not have access to. Reputable bulk SMS providers will check customer sender IDs beforehand to make sure senders are not misusing or abusing them.
Message size The message size will then determine the number of SMS messages that are sent, which then determines the amount of money spent on marketing a product or service. Not all characters in a message are the same size. A single SMS message has a maximum size of 1120 bits. This is important because there are two types of character encodings, GSM and Unicode. Latin-based languages like English are GSM based encoding, which are 7 bits per character. This is where text messages typically get their 160 characters per SMS limit. Long messages that exceed this limit are
concatenated. They are split into smaller messages, which are recombined by the receiving phone. Concatenated messages can only fit 153 characters instead of 160. For example, a 177 character message is sent as 2 messages. The first is sent with 153 characters and the second with 24 characters. The process of SMS concatenation can happen up to 4 times for most bulk SMS providers, which allows senders a maximum of 612 character messages per campaign. Non-Latin based languages, like Chinese, and also emojis use a different encoding process called Unicode or Unicode Transformation Format (
UTF-8). It is meant to encompass all characters for efficiency but has a caveat. Each Unicode character is 16 bits in size, which takes more information to send, therefore limiting SMS messages to 70 characters. Messages that are larger than 70 characters are also concatenated. These messages can fit 67 characters and can be concatenated up to 4 times for a maximum of 268 characters.
Content structure Special elements that can be placed inside a text message include: • UTF-8 Characters: Send SMS in different languages, special characters, or emojis • Keywords: Use keywords to trigger an automated response • Links: Track campaigns easily by using shortened URLs to custom landing pages • Interactive Elements: Pictures, animations, audio, or video Texting is simple, however, when it comes to SMS marketing - there are many different content structures that can be implemented. Popular message types include sale alerts, reminders, keywords, and multimedia messaging services (MMS).
SMS sales alerts Sale alerts are the most basic form of SMS marketing. They are generally used for clearance, flash sales, and special promotions. Typical messages include coupon codes, and information like expiration dates, products, and website links for additional information.
SMS Transaction alerts Transaction alerts are used by financial institutions to notify their customer about a financial transaction done from their account. Some SMS messages only highlight the amount transacted while some also include the balance amount left in the account.
SMS reminders Reminders are commonly used in appointment-based industries or for recurring events. Some senders choose to ask their recipients to respond to the reminder text with an SMS keyword to confirm their appointment. This can really help improve the sender's workflow and reduce missed appointments, leading to improved productivity and revenue.
SMS keywords This allows people to text a custom keyword to a dedicated virtual number or short code. Through custom keywords, users can opt-in to service with minimal effort. Once a keyword is triggered, an autoresponder can be set to guide the user to the next step. They can also activate different functions, which include entering a contest, forwarding to an email or mobile number, group chat, and sending an auto-response. Keywords also allow users to opt-in to receive further marketing correspondence. When using a long code number you face higher levels of scrutiny from Telecom Companies. When sending SMS messages through long code you are unable to send messages with a link in the first message. This is done at the carrier level to help cut down on spam. Using keyword responses, a company can create a bridge between themselves and the user. Carriers will recognize users responding to an SMS with a keyword as a conversation and will allow links to be delivered.
Spam compliance Similar to email, SMS has anti-spam laws which differ from country to country. As a general rule, it's important to obtain the recipient's permission before sending any text message, especially an SMS marketing type of message. Permission can be obtained in a myriad of ways, including allowing prospects or customers to tick a permission checkbox on a website, filling in a form, or getting a verbal agreement. In most countries, SMS senders need to identify themselves as their business name inside their initial text message. Identification can be placed in either the sender ID or within the message body copy. Spam prevention laws may also apply to SMS marketing messages, which must include a method to opt out of messages. One key criterion for provisioning is that the consumer opts in to the service. The mobile operators demand a double opt-in from the consumer and the ability for the consumer to opt-out of the service at any time by sending the word STOP via SMS. These guidelines are established in the
CTIA Playbook and the MMA Consumer Best Practices Guidelines which are followed by all mobile marketers in the United States. In
Canada, opt-in became mandatory once the
Fighting Internet and Wireless Spam Act came into force in 2014.
Message delivery Simply put, SMS infrastructure is made up of special servers that talk to each other, using software called
Short Message Service Centre (SMSC) that use a special protocol called
Short Message Peer to Peer (SMPP). Through the SMPP connections, bulk SMS providers (also known as
SMS Gateways) like the ones mentioned above can send text messages and process SMS replies and delivery receipts. When a user sends messages through a bulk SMS provider, it gets delivered to the recipient's carrier via an ON-NET connection or the International
SS7 Network.
SS7 network Operators around the world are connected by a network known as Signaling System #7. It is used to exchange information related to phone calls, number translations, prepaid billing systems, and is the backbone of SMS. SS7 is what carriers around the world use to talk to each other.
ON-NET routing ON-NET routing is the most popular form of messaging globally. It is the most reliable and preferable way for telecommunications/carriers to receive messages, as the messages from the bulk SMS provider is sent to them directly. For senders that need consistency and reliability, seeking a provider that uses ON-NET routing should be the preferred option.
Grey routing Grey routing is a term given to messages that are sent to carriers (often offshore) that have low cost interconnect agreements with other carriers. Instead of sending the messages directly to the intended carrier, some bulk SMS providers send it to an offshore carrier, which will relay the message to the intended carrier. At the cost of consistency and reliability, this roundabout way is cheaper, and these routes can disappear without notice and are slower. Many carriers do not like this type of routing, and will often block them with filters set up in their SMSCs.
Hybrid routing Some bulk SMS providers have the option to combine more reliable grey routing on lower value carriers with their ON-NET offerings. If the routes are managed well, then messages can be delivered reliably. Hybrid routing is more common for SMS marketing messages, where timeliness and reliable delivery is less of an issue.
SMS service providers The easiest and most efficient way of sending an SMS marketing campaign is through a
bulk SMS service provider.
Enterprise-grade SMS providers will usually allow new customers the option to sign-up for a free trial account before committing to their platform. Reputable companies also offer free spam compliance, real-time reporting, link tracking, SMS API, multiple integration options, and a 100% delivery guarantee. Most providers can provide link shorteners and built-in analytics to help track the return on investment of each campaign. Depending on the service provider and country, each text message can cost up to a few cents each. Senders intending to send a lot of text messages per month or per year may get discounts from service providers. Since spam laws differ from country to country, SMS service providers are usually location-specific. This is a list of the most popular and reputable SMS companies in each continent, with some information about the number of phones in use. Message pricing, message delivery, and service offerings also differ substantially from country to country.
Africa Asia Australia/Oceania North America Europe South America ==MMS==