Research from global cloud communications platform Infobip shows the global popularity of Short Message Service (SMS) within customer communications, 30 years after a software programmer sent the first message on 3 December 1992. Infobip’s analysis shows that despite the rise of new communication channels, SMS remains popular, with a 75% increase in use in 2022 compared to 2021.
Infobip analysed more than 153 billion communications interactions on its platform from the first half of 2022 compared to the same period in 2021. It shows that SMS remains a top three channel in every region worldwide, including Europe, Eurasia, North America, Latin America, Middle East and North Africa, Africa, India and Asia-Pacific.
With the highest open rates and return on investment, Infobip’s analysis shows that businesses and brands continue to use SMS for timely alerts and security solutions, including two-factor authentication. What’s more, highlighting the versatility of the channel, the data also shows that SMS made up 16% of total customer engagement and marketing interactions.
Ivan Ostojić, Chief Business Officer at Infobip, said: “As we reach the 30th anniversary of SMS, our data shows that it remains as popular as ever. SMS has evolved from a personal messaging platform to a key tool for business to consumer communications. Infobip has played a critical role in this evolution, enabling businesses and brands deliver billions of messages every year through our 700 direct telecom operator connections. As one of the most reliable and practical ways for brands to ensure their message reaches their customers, it is the go-to channel for time-sensitive alerts and security notifications. With its global reach and no reliance on internet connectivity, we expect SMS to continue to play a key role in future business-to-consumer communications”.
Infobip also finds that many sectors continue to rely on SMS. For instance:
- Banking and finance saw 68% more SMS interactions, where firms use SMS for timely alerts
- Retail and eCommerce recorded 22% more SMS interactions, where brands use it for retail marketing automation
- Telecoms saw 48% more SMS interactions, where firms rely on SMS for reliable, secure messaging with an international customer base
After working with companies from different industries across the MENA region for more than 10 years, Alma Numić, VP General Manager MENA, reflected on the evolution of SMS in the region: “Even though customers’ communication preferences are shifting towards chat apps and social media channels, the results of our research indicate that there’s still much trust in SMS. Despite being perceived as one of the more traditional channels, MENA customers count on SMS as their simple and reliable way of getting relevant information. In several industries in the MENA region, there are strict government regulations, due to which SMS is the only allowed communication channel for delivering sensitive information. Infobip’s built-in compliance engine ensures that messages businesses send comply with local law. Also, we are currently in the process of opening data centres in the region to ensure an additional level of security and compliance for our local clients”.
Ivan Ostojić, Chief Business Officer at Infobip, continued: “The original SMS message sent 30 years ago by 22-year-old software programmer Neil Papworth helped forge a path to global connectivity. That connectivity has evolved and rapidly grown in recent years, and Infobip now handles hundreds of billions of messages every year, reaching 75% of mobile phones globally. We look forward to continuing to be at the forefront of innovation and transformation in omnichannel communications, delighting customers on any channel, anywhere in the world.”