Text message marketing is increasingly an important strategy for businesses of all sizes. With more than 98% open rates and participation rates well in excess of email marketing, SMS marketing is an easy and effective way to reach out to customers. And then there’s the matter of text message marketing cost and budgeting for the best bang without exceeding budget.
In this guide, we will discuss the price of SMS marketing in 2025, available pricing models, pricing influencers, and how to optimize the return on investment (ROI). At the end of it, you will have a full grasp of how to optimize affordability with effectiveness in SMS marketing.
What Is Text Message Marketing?
SMS marketing or text message marketing is a practice by which organizations send promotionals, reminders, and notices straight to the clients through text messages. There are many approaches through which organizations could reach customers, sealing deals and creating brand awareness. One of them is SMS marketing which stands out as among the best in terms of speedy delivery and message open rates due to the fact that individuals keep glancing at their phones. It is used as a promotional or reminder application and is even reserved for special announcements indeed a powerful and direct marketing action on customers in communicating.
How Does Text Message Marketing Work?
Using an SMS marketing platform with companies to send the SMS messages to the consumer group. Basically, the steps include:
- Consumer Permission: All marketing messages should be permission-based from the customer as per the mandates of the law (e.g. TCPA in the United States).
- Creating Targeted SMS Campaigns: Promos, event reminder, or status of an order may be carried by messages.
- Scheduling and Sending a Message: Business people employ software programs to broadcast messages at a suitable time that generates the largest amount of participants.
- Monitorying Performance: Businesses measure delivery, openings, and conversion percentages to measure optimization for upcoming campaigns.
Benefits of Text Message Marketing
- Large Open Rates: Text message obtains an 98% opening percentage, making it one of the strongest marketing means.
- Immediate Engagement: Messages are sent immediately, and there can be an instant customer interaction.
- Cost-Effective: The cost of text message marketing is lower than regular advertising but is more engaging.
- Personalized Communication: Businesses can send customized offers, and this increases customer satisfaction and loyalty.
By implementing SMS marketing strategically, businesses can increase sales, improve brand loyalty, and get maximum return on investment while keeping the cost of text message marketing within bounds.
Understanding the Cost of SMS Marketing in 2025
The pricing of text message marketing varies with a variety of factors including the number of messages being sent, service provider, additional features, and geographical location. Understanding these cost determinants can help companies make appropriate decisions regarding their SMS marketing strategy.
Pay-Per-Message Pricing
The majority of SMS marketing platforms charge companies per message. The cost per message is a function of whether it is a standard SMS or MMS:
- SMS (Short Message Service): $0.01 – $0.05 per message (160-character message segment limit).
- MMS (Multimedia Messaging Service): $0.02 – $0.10 per message (may include images, videos, or GIFs).
This plan is best suited for businesses sending messages occasionally and want to pay as they go. But with an increase in the number of messages, costs can add up quickly.
Monthly Subscription Plans
Subscription plans allow business firms to deliver a predetermined volume of messages a month at lower rates. The common levels of pricing are:
- Basic Plans: $10-$50 a month (500-1,000 messages).
- Mid-Tier Plans: $100-$500 a month (5,000-25,000 messages inclusive).
- Enterprise Plans: Business firms’ prices to send 100,000+ messages a month.
For frequent SMS senders, a subscription plan will save overall cost of text message marketing and give more value.
Bulk SMS Pricing
Those who are sending large quantities of messages can avail themselves of bulk SMS pricing, which provides lower prices. For example:
- 10,000 – 50,000 messages: $0.007 – $0.02 per SMS
- 50,000 – 100,000 messages: $0.005 – $0.015 per SMS
- 100,000+ messages: Custom pricing with further discounts
Bulk SMS pricing is ideal for e-commerce websites, event organizers, and businesses with large marketing campaigns.
Other Fees to Keep in Mind
In addition to per-message fees, businesses should budget for extra fees, which are:
- Dedicated Shortcodes: $500 – $1,000 a month (short, simple-to-remember numbers utilized in bulk texting).
- Toll-Free Numbers: $2 – $5/month (enables customers to reply for free).
- SMS Campaign Keywords: $5 – $50/keyword (utilized in customer opt-in campaigns).
- Carrier Fees & Compliance Costs: Diverse based on country regulation and carrier policies.
Since understanding these additional fees enables businesses to accurately determine the cost of text message marketing without hidden fees, companies are more equipped to plan for future marketing campaigns.
Comparing the Cost of SMS Marketing to Other Digital Marketing Channels
To ascertain whether SMS marketing is cost-effective or not, it’s necessary to compare it with other digital marketing channels:
| Marketing Channel | Average Cost | Open Rate | Engagement Rate |
|---|---|---|---|
| SMS Marketing | $0.01 – $0.05 per SMS | 98% | 45%+ |
| Email Marketing | Free – $0.03 per email | 20% | 5% |
| Social Media Ads | $0.50 – $3 per click | Varies | 1-3% |
| Google PPC Ads | $1 – $10 per click | Varies | 1-5% |
Although the price of text message marketing seems higher than that of email marketing, its low penetration and high conversion value make it cheaper.
How to Make Your SMS Marketing Budget Optimal
SMS marketing does not have to always be expensive. With the choice of an optimal plan, avoiding wasteful spending, and using intelligent strategies, businesses can lower their text message marketing expense without increasing engagement. Here is how:
Choose the Proper SMS Marketing Strategy
Choosing the proper pricing strategy is the key to making text message marketing affordable:
- Infrequent Users: Send randomly and pay per message to avoid monthly charges.
- Regular Campaigns: Send routinely, and a month-to-month subscription scheme is more economical.
- High-Volume Users: For companies sending thousands of messages, bulk SMS prices offer wonderful discounts.
Prevent Excessive SMS Expenses
Cost savings can reduce SMS marketing expense:
- Don’t send long messages: Longer messages of over 160 characters are broken up, and it’s more expensive. Be concise in sending messages.
- Make Use of Concise & Powerful Copy: Uncluttered short messages yield optimal response with no added expense.
- Maintain Clean & Segmented Contact Lists: Removal of inactive numbers prevents unnecessary expenditures on non-delivery of text messages.
Leverage Cheap and Zero-Dollar SMS Promotion Tools
There are certain low-cost SMS marketing solutions that can be used to minimize the cost of text message marketing:
- Twilio: Pay-as-you-go rate of $0.0075 per SMS.
- SimpleTexting: Starting at $29 per month for 500 messages.
- EZ Texting: Bulk discounts and free trials.
Choosing a proper SMS marketing platform provides you with the best money value spent.
Utilize ROI with Smart SMS Strategies
Maximizing returns from your SMS campaigns ensures higher returns:
- Use SMS Automation: Automated message scheduling saves time and boosts interaction.
- A/B Test Campaigns: Try out various messages to determine what performs best.
- Personalize Messages: Sending personalized messages based on customer data boosts response rates.
Use SMS Along with Other Marketing Channels
When SMS is combined with other marketing channels, cost-value is optimized:
- SMS + Email: These follow-up emails, texts received boost conversion.
- SMS + Social Media: Engage social contest participation by texting.
- SMS + PPC: In-text offer made visible to customers following exposure to PPC advertisement.
Organizations are able to minimize cost of text messaging marketing but make it contribute substantial marketing muscle by using such approaches.
Case Studies: Firms Cutting SMS Marketing Expenses
Case Study 1: Reducing SMS Costs by Fashion Boutique
A regional area boutique shop minimized the cost of message-based promotion by the switch to a bulk SMS program.
- Shifted to a bulk SMS plan and cut per-message costs.
- Achieved a 30% decrease in the cost of SMS marketing.
- Recorded a 20% growth in visits to the shop through targeted messaging.
- Increased their spending twice, as well as retaining existing customers’ interest.
Case Study 2: Restaurant Automating SMS Offers
One restaurant chain utilized automation to decrease its text message marketing expenditure while promoting enhanced customer retention. Automated SMS campaigns had also been adding to the cost previously.
- Executed automated messaging based on customers’ purchasing habits.
- Reduced SMS costs by 25% by optimizing message timing.
- Improved customer retention rates via personalized offers.
- Boosted repeat orders without sacrificing cost-effective marketing strategies.
Final Thoughts: Is SMS Marketing Worth the Cost?
Though initial implementation cost is incurred, SMS marketing turns out to be one of the most economical and super-engaging marketing mediums now. With optimum pricing models, removing the uneconomical expenses, and smart strategies, most businesses make most cost-effective text message marketing and achieve those better returns on investments.
Key Takeaways
- SMS marketing is economical compared to other digital channels.
- Proper plan selection minimizes ttext message marketing cost.
- Automation, segmentation, and bulk rate discounts cut costs.
- SMS remains one of the best customer interaction tools.
Businesses that need a high-ROI, affordable marketing strategy should include SMS marketing in their plans in 2025.
FAQs
How much does text message market cost?
Text message marketing costs according to the pricing model:
- Pay-per-message: About $0.01 to $0.05 per message.
- Monthly subscription: At least $29/month for 500 messages.
- Bulk SMS rates: Discounted prices for bulk users, with declining per-message rates.
How can business reduce cost when text messaging?
Companies can save costs by:
- Choosing a suitable pricing plan by usage.
- Posting fewer than 160 characters to avoid split messages.
- Using bulk SMS packages for lower per-message rates.
- Cleaning and segmenting contact lists to prevent messages wasted.
Is SMS marketing cheaper than email marketing?
SMS marketing has higher open rates (98%) compared to email marketing, though email is cheaper. But SMS provides more immediate response, so it can be a useful addition when utilized thoughtfully in combination with other marketing methods.
What are the lowest-cost SMS marketing platforms for small business budgets?
Affordable SMS marketing software are:
- Twilio: Pay-as-you-go pricing at $0.0075 per SMS.
- SimpleTexting: Starting at $29/month for 500 messages.
- EZ Texting: Offers free trials and bulk SMS packages.
Can SMS advertising be automated to reduce costs?
Companies can use SMS automation in message scheduling, sending offers, and triggering replies because of consumer behavior. In doing so, it optimizes efficiency, avoids the cost of text message marketing, and enhances consumer interaction.