Report: SMS still popular despite emergence of alternative communication channels

The global popularity of Short Message Service (SMS) within customer communications, remains immensely popular despite the rise of new communication channels, with a 75 percent increase in use in 2022 compared to 2021, a new report by Infobip has revealed.

Infobip analyzed more than 153 billion communications interactions on its platform from the first half of 2022 compared to the same period in 2021 and the study shows that SMS remains a top three communication channel in every region worldwide including Africa, Europe, Eurasia, North America, Latin America, the Middle East, India and Asia-Pacific.

With the highest open rates and return on investment, businesses and brands continue to use SMS for timely alerts and security solutions, including two-factor authentication, the report says.

Highlighting the versatility of the channel, data from the analysis also shows that SMS made up 16 percent of total customer engagement and marketing interactions in the period under review.

“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," Ivan Ostojić, Chief Business Officer at Infobip said.

"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.” 

The report also found that many business sectors continue to rely on SMS for communication. Banking and finance, for instance, registered a 68 percent increase in SMS interactions as the lenders continue using SMS to send out timely alerts.

Retail and eCommerce recorded 22 percent more SMS interactions, with players in the sector brands using it for retail marketing automation while telecoms saw 48 percent increase in SMS interactions with relevant parties relying on SMS for reliable, secure messaging targeting an international customer base

“Mobile text messaging has become the core feature of the smartphone era in Africa. With more than 220 million subscribers in East Africa, it is impossible to underestimate the importance and impact of this technology on emerging markets," Marko Reis, Regional Manager East Africa said. 

"Due to inconsistent data connectivity throughout the continent, SMS remains at the center of most communications activity across Africa and will continue to drive how people and businesses connect with each other.  Infobip’s built-in compliance engine ensures that messages that businesses send comply with local law and provides additional level of security and compliance for our local clients.”