Does Text Message Advertising Work?

By February 18, 2016marketing

In an age where 90 percent of American adults carry a cell phone, digital advertisers and marketing agencies alike have been reluctant to connect with consumers the way teenagers have for well over a decade — through text messaging.

One reason for this hesitation is straightforward: the Federal Communications Commission (FCC) has strict guidelines when it comes to text message marketing. Automated dialers used to send unsolicited messages without the express consent of the recipient are illegal, and subject to stiff penalties.

Besides the unlawful aspect, unsolicited text messages have terrible response rates. Opt-in text message advertising, however, tells a different story. According to James Citron, CEO of text messaging service Mogreet, not only do 95 percent of opt-in text message customers open and read the mobile messages they receive, they do so within an average of three minutes.

That response rate trumps even email newsletters, the unsung champion of marketing agencies across the country. But it’s not enough to just text customers your average marketing fluff — opt-in customers want to get something special out of a text marketing service, such as coupons or access to exclusive sales.

Take the Armani Exchange text service, which previously offered a series of sales available only to text message customers — the campaign was so successful, lines formed out the door and down the street at the Manhattan flagship store.

Text message marketing can work especially well for geo-targeting purposes; customers can sign up to receive offers exclusive to their physical location, or coupons that recommend a particular location. Small boutique businesses can also capitalize on geo-targeting, by only messaging customers when they come within a certain range of a store or business.

Since text message marketing is still relatively uncommon among marketing agencies, the efficacy of text advertising remains a topic of future research. However, when done well — and in accordance with FCC guidelines — text message advertising can be a new and innovative way to reach consumers in the 21st century.