What Is SMS? How Short Message Service Transforms Communication

Olena Holubnyk
Content Marketer
16 minute read
Olena Holubnyk
Content Marketer
16 minute read

SMS (Short Message Service) has become a fundamental part of how we connect. With its ability to send quick, concise messages of up to 160 symbols between mobile devices, it revolutionized communication by making it instant, simple, and accessible.

But don’t let its brevity fool you — SMS has completely reshaped how we engage, personally and professionally.

➥ An astonishing 98% of SMS messages are opened, with a 10.66% click-through rate, outperforming email campaigns and proving to be quick, direct, and highly effective.

Modern systems now allow for longer messages, meaning SMS has evolved with us as a crucial tool for bridging communication gaps and fostering instant connections.

So, think about it: what started as a simple way to send a message has turned into a powerful force in how we stay in touch, proving that sometimes, less truly is more.

What Is SMS?

An SMS message is a technology that sends short text messages between mobile phones. Usually capped at 160 characters, these messages are fast and to the point. If you need to send longer messages, modern systems can automatically segment them or support extended formats to keep the conversation going.

➥ What does SMS mean? It’s a Short Message Service universally supported across all mobile devices and networks, making it a staple for basic text communication.

Did you know that the first SMS messages were sent in 1992? Developed in the 1980s as part of the GSM standard for mobile communications, now it’s the most universal, widely supported form of conversations, compatible with every mobile device and network.

No fancy app is required — just a simple, reliable way to stay connected.

SMS has become an important part of mobile communication, and it has stimulated the development of new services such as MMS (Multimedia Messaging Service).

➥ Developed to enhance SMS, MMS supports multimedia like images, audio, and videos and often has a size limit of around 300 KB. MMS provides a richer messaging experience but still relies on cellular networks.

In contrast, Over The Top (OTT) apps like iMessage, WhatsApp, and WeChat use internet connections instead of cellular networks. They offer features beyond SMS and MMS, including multimedia sharing, group chats, and voice/video calls, but require users to download the same app.

The SMS message is universally accessible and reliable, confirmed by statistics:

The channels consumers prefer for receiving brand updates

What Are the Technical Aspects of SMS?

Each SMS text message travels through the mobile network’s control channels, ensuring swift and reliable delivery. Here’s a closer look at the technical details:

  1. Message structure: The SMS message has a header and a text body. The header carries essential details — who sent it, who’s receiving it, and how long it is. The text body can be up to 160 characters long or divided into several messages.
  2. Message transmission: Once you hit “send,” the message stops at the SMSC (Short Message Service Center), which is responsible for storing and forwarding the messages. SMSC ensures delivery even if the recipient’s phone is out of reach for a moment.
  3. Security on the move: SMS messages are encrypted at the network level for basic privacy. Additional solutions, such as application-level encryption, can be used if increased security is required.

 

How Does SMS Work?

When you send an SMS, your message travels through your carrier’s network to a Short Message Service Center (SMSC). The SMSC then routes the message to the recipient’s network, which delivers it to their device.

SMS is reliable and quick, making it a popular choice for personal communication and business alerts. E-Delivery from Phonexa capitalizes on this strength by enhancing SMS marketing efforts.

E-Delivery enables businesses to effortlessly reach customers through SMS and email with its multichannel distribution. Featuring behavioral segmentation, A/B testing, real-time reporting, and smart throttling, it refines strategies and enhances deliverability for effective SMS marketing campaigns.

 

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SMS technology uses mobile network signaling channels typically reserved for voice calls, and here’s a quick rundown:

  1. Message creation: The sender types a text and enters the recipient’s number.
  2. SMSC processing: The message goes to the Short Message Service Center (SMSC), which handles SMS traffic.
  3. Routing: The SMSC determines the recipient’s network.
  4. Delivery: The message is sent to the recipient’s network, temporarily stored, and delivered when the device is reachable.
  5. Display: The recipient’s phone receives and displays the message.
  6. Confirmation (optional): A delivery confirmation is returned to the sender.

 

Because SMS uses control channels, it remains reliable, even in areas with low coverage.

While SMS messaging is a powerful tool, alternatives like messaging apps (e.g., WhatsApp, Facebook Messenger) and email offer distinct advantages. Messaging apps enable richer, more interactive conversations, whereas email is best for detailed, non-urgent communications. Your choice depends on the message’s nature and your target audience.

SMS Message Delivery Mechanism

Just as email marketers keep a close eye on their email delivery rates, SMS marketers should be vigilant about their delivery metrics.

How peer-to-peer SMS works

Why does SMS delivery matter? It’s simple: you’ve invested time building a subscriber base, but if your text messages don’t reach their phones, that effort is wasted. Without successful delivery, your chances of converting subscribers through SMS are weak, which can impact your overall ROI.

To keep your SMS message delivery rates high, you must address common challenges head-on.

  1. Sign-up errors: A wrong phone number during sign-up can derail your plans. Avoid this with Phonexa’s Call Logic real-time reporting, which helps you catch issues as they happen. Don’t wait until it’s too late — spot discrepancies and fix them on the spot.
  2. iOS and Android filters: If your messages are perceived as unknown, they might be in a spam folder. Improve visibility by sending a virtual contact card to encourage subscribers to save your number, enhancing recognition and reducing opt-out rates.
  3. The right phone number: Whether you go for a short code or a toll-free number, the right choice is crucial. Shortcodes are great for large campaigns due to higher throughput and faster delivery. Partner with an SMS provider to help you pick the best number for your needs.
  4. Carrier spam filters: Carriers block unwanted messages with spam filters. Avoid using third-party link shorteners, ensure your content follows regulations, personalize your messages, monitor opt-outs, and use Smart Sending and time zone adjustments.

 

SMS Protocol: The BackBone of Text Messaging

The SMS protocol serves as a rulebook for sending short text messages over mobile networks. It handles everything from sender and receiver details to delivery reports and the message content, integrating dialogue between mobile devices, the Internet, and phone networks.

SMPP protocol stack

The SMPP protocol is used for SMS transmission over the Internet, following a client-server scheme. It is used for mass mailings through SMS gateways when messages are sent by applications or office systems to mobile devices.

SMS relies on TCP/IP to transmit text messages over mobile networks.

A protocol stack based on TCP/IP is used to transmit SMS over the Internet. A TLS or SSL security layer can be added on top of this to encrypt the data, but this is only required when using a secure SMPP server. Ozeki SMS Gateway supports SMPP with or without this protection.

SMPP (Short Message Peer-to-Peer )is the “road” for transmitting text messages between ISPs and applications. Starting in 2024, a segmentation layer will be required for multipart SMS, as messages longer than 160 characters must be divided. The Ozeki SMS Gateway ensures smooth delivery of these segmented messages.

All You Need to Know about SMS Standards

SMS standards are technical guidelines and protocols that govern how Short Message Service (SMS) operates. They ensure compatibility and interoperability across different mobile networks and devices. 

Here are the key standards:

➥ GSM 03.40: Defines the format and encoding of SMS messages within GSM networks.

➥ ISO/IEC 10646: Specifies the Unicode standard for encoding text, allowing SMS messages to support a wide range of characters and languages.

➥ 3GPP TS 23.040: Outlines the technical specifications for SMS messaging in 3G and later networks, ensuring consistent performance and delivery.

Global SMS Messaging Rules at a Glance

  • Opt-in and opt-out: Most countries require explicit opt-in for SMS messages. Don’t rely on implied consent or tick-boxes; always include a free unsubscribe link.
  • Sender ID: This is the name shown in the recipient’s inbox. Some regions allow branded alphanumeric Sender IDs, but you might need to register to avoid fraud and duplication.
  • Message content: Distinguish between transactional (e.g., delivery notifications) and marketing messages, as marketing content is often restricted, especially on sensitive topics.
  • Sending time: Messaging hours are often restricted, like 8 am to 8 pm, with some countries, like France, banning messages on certain days.
  • Do Not Contact Registries: Many regions have opt-out registries for business communications. Ignoring these can lead to fines or service suspensions.

SMS Regulations in the U.S.

In the U.S., SMS compliance is crucial for smooth messaging and has several requirements:

  • Registration: All messaging programs must be registered; unregistered traffic is a no-go.
  • Content restrictions: Ads for gambling, drugs, alcohol, firearms, and adult content are banned, along with certain financial products. Sharing lead info with third parties is also prohibited.
  • Opt-in requirement: You can send marketing and transactional texts only to those who’ve opted in.
  • Two-way messaging: Commercial texts must allow recipients to opt out or get support by texting “HELP.”
  • Sender types: Use either shortcodes or 10-digit long codes (10 DLCs).
  • Legislation: Follow the Telephone Consumer Protection Act (TCPA) and CTIA guidelines to avoid legal trouble and fines. Carriers have their own rules too.

Statistics on U.S. SMS Marketing market

Source: GrandViewResearch

Watch statistics, understand the legal framework under TCPA, and follow CTIA guidelines and individual carrier rules to ensure smooth and compliant messaging in the U.S. or beyond.

SMS Marketing: Strategies for Effective SMS Campaigns

SMS marketing is about connecting with your customers directly through their phones, offering a personal touch that’s hard to beat. Here’s a quick rundown of how it works and how you can make the most of it.

How SMS Marketing Works

Getting subscribers Build a list of people waiting to hear from you. Use sign-up forms on your website or in-store promotions to collect phone numbers.
Create your message With a limit of 160 characters, every word counts. Keep your messages clear, engaging, and relevant.
Sending and optimizing  Use an SMS platform to send your messages and monitor delivery rates and engagement. This helps tweak your approach and improve results over time.

Examples of Successful SMS Campaigns

Promotional and transactional SMS messages serve distinct purposes in business communication, each catering to specific customer needs.

Difference between Transactional and Promotional SMS

Source: Sinch

Promotional SMS text messages are marketing-oriented and aim to boost sales, drive traffic, or increase engagement by advertising products, services, deals, or events. They are sent to subscribers to entice action, such as making a purchase, visiting a website, or redeeming a special offer.

Transactional SMS focuses on delivering operational information related to customer interactions with the business. These messages include essential updates such as order confirmations, shipping notifications, account changes, or payment details.

Unlike promotional SMS, transactional messages are not designed to market products but to keep customers informed and reassured about their ongoing transactions.

Top strategies for effective SMS marketing.

Real-Life SMS Campaigns of Different Companies

1. Subscriptions

An SMS subscription example.

2. Post-Purchase

A post-purchase SMS example.

3. E-commerce Journeys

E-commerce SMS example.

4. Product Launch

Product launch SMS example.

What Is an SMS API?

An SMS API is a programming interface that allows software to send and receive SMS messages. It connects applications with SMS services, enabling automated and scalable communication.

Operating on a client-server model, the API takes client-app message requests, validates them, and sends them via an SMS provider. It can also retrieve incoming messages for the client.

Key benefits:

  1. Automation: Saves time by automating message sending and receiving.
  2. Integration: SMS is easily integrated into existing systems.
  3. Scalability: Grows with your communication needs.
  4. Personalization: Allows for dynamic, customized messaging.
  5. Real-time communication: Delivers instant notifications and updates.

 

How to use an SMS API:

  1. Get API credentials: Register with an SMS provider and get an API key.
  2. Integrate the API: Use the provider’s endpoints in your application.
  3. Send messages: Provide recipient details and message content.
  4. Handle responses: Process delivery confirmations and errors.
  5. Receive messages (optional): Use webhooks to capture incoming SMS messages.

 

With an impressive open rate, SMS messages are hard to ignore and are a perfect channel for time-sensitive offers, updates, and alerts. But what makes SMS marketing truly effective, and how can businesses navigate the challenges and maximize the benefits?

To automate the process, specialists in SMS marketing leverage APIs with such purposes:

  1. API integration: Businesses connect their systems with an SMS API to send messages.
  2. Subscriber list: Opt-in information is collected through various channels and integrated into the system.
  3. Personalization: Messages are personalized with subscriber details like names or preferences.
  4. Automation: Predefined triggers automate sending, like welcome or transaction messages.
  5. Bulk campaigns: SMS APIs enable targeted bulk campaigns, segmenting audiences by demographics or behavior.
  6. Tracking: APIs track message delivery and provide status updates.
  7. Engagement: Two-way communication allows subscribers to reply, fostering real-time engagement.
  8. Compliance: APIs handle opt-outs and regulatory compliance, managing subscriber permissions effectively.

 

Crafting Effective SMS Marketing Strategies

Successful SMS marketing hinges on personalization and timing. Sending tailored messages that resonate with the individual recipient — such as using their name or referencing recent interactions — can significantly boost engagement.

Sending messages during peak hours, when recipients are likely to check their phones, enhances results. A clear call to action (CTA) encourages immediate responses, whether to redeem a discount, confirm an appointment, or participate in a survey.

Segmentation enhances SMS campaigns by allowing businesses to target specific groups based on demographics, behavior, or preferences. This targeted approach ensures that messages are relevant and welcomed, rather than perceived as intrusive.

For a seamless experience, consider integrating Phonexa’s LMS Sync. It streamlines lead management, ensuring your SMS campaigns are as effective and organized as possible.

Lead management software offers valuable insights into every lead, optimizing your web campaigns for growth and revenue. It provides lead tracking and distribution, real-time reporting, and custom configurations to streamline your process.

 

The Benefits and Challenges of SMS Marketing

Benefits of SMS marketing.

SMS marketing stands out for its immediacy and simplicity. Messages pop up instantly, cutting through the noise of crowded email inboxes and social media feeds. This direct line is especially valuable for time-sensitive updates, like service alerts or emergency notifications.

However, challenges remain. The character limit requires impactful messaging in a tight space, which can be creatively demanding. Additionally, compliance with regulations like GDPR and TCPA is essential — businesses must obtain explicit consent before sending marketing messages and provide straightforward opt-out options.

Dynamic SMS Text Marketing Strategies to Elevate Your Brand

1. Rewarding Customer Loyalty

Loyalty deserves appreciation. Integrating SMS messages into your loyalty programs allows you to send personalized discounts, exclusive promotions, and reminders for special events directly to customers’ phones.

Nordic beauty retailer Parfym.se excels at this, using targeted SMS campaigns to announce flash sales, achieving open rates of over 98%.

2. Hyper-Personalized Promotions

Who doesn’t love a tailored deal? Take a page from Nissan Europe’s playbook, where an SMS message is used to send offers based on customer preferences, like maintenance needs or even weather forecasts. This approach led to a nearly 80% conversion rate.

Hyper-targeted messages ensure your audience feels seen and valued, driving stronger connections.

3. Time-Sensitive Offers and Seasonal Sales

SMS is unbeatable for time-sensitive promotions like flash sales or Black Friday deals. Vail Resorts leverages SMS alongside email to alert snow enthusiasts about lift ticket specials and snow reports. This dual-channel strategy has significantly boosted engagement and sales, proving that SMS messages can be a powerful tool.

4. Remarketing Made Easy

Though it can be complex, SMS simplifies it. From abandoned cart reminders with special discounts to post-purchase follow-ups and review requests, SMS makes reconnecting with customers seamless. Delivery services like Budbee use SMS for order updates, enhancing customer satisfaction with real-time information.

5. Gathering Feedback with Surveys

SMS surveys allow you to capture valuable feedback quickly and directly. Tailor your questions to gather insights on specific aspects of your business, whether it’s a recent purchase or a marketing campaign.

6. Secure and Immediate Communications

Banks like Triodos Bank Spain use SMS to send one-time passwords and security alerts, ensuring secure and prompt communication with customers. SMS’s immediacy and reliability make it ideal for sharing sensitive information, reducing risks, and enhancing user experience.

7. Integrating SMS into an Omnichannel Strategy

While SMS stands out for its immediacy, it shines brightest as part of a broader omnichannel strategy. By combining SMS messages with email, MMS, or RCS, you can create a cohesive customer journey that caters to different preferences and touchpoints. This holistic approach not only maximizes reach but also enhances the overall customer experience.

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LMS Sync Lead management system
Call Logic Call tracking and analytics platform
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Lynx Click tracking software
E-Delivery Email marketing tool
HitMetrix User behavior analytics and CRO software
Opt-Intel Email suppression list management solution
Books360 Accounting software with integrated invoice generation

 

Build your plan and discover how call tracking and SMS solutions can boost your leads, or book a demo to see our tools in action.

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Is SMS Still Relevant in 2024?

Despite the rise of messaging apps and other digital communication tools, an SMS message remains relevant due to its unparalleled reach and simplicity. Emerging trends like Rich Communication Services (RCS) and AI-driven messaging are set to enhance the SMS experience, offering richer content and more interactive capabilities.

Moreover, integrating SMS with other technologies, such as email or chatbots, can create a seamless multi-channel communication strategy that maximizes engagement.

SMS marketing is still vital for a well-rounded communication strategy. By leveraging APIs, addressing security concerns, and staying attuned to emerging trends, businesses can effectively connect with customers in meaningful ways.

Frequently Asked Questions

What is an sms?

SMS, or Short Message Service, is a lifeline for quick, text-based communication on mobile devices. It’s the digital equivalent of passing a note in class — simple, immediate, and always at your fingertips.

What is sms messaging?

SMS messaging is like sending a handwritten letter through your phone, letting you convey thoughts and updates in real-time. It’s the go-to method for everything from quick reminders to heartfelt messages.

How do text messages work?

Text messages are transmitted through a network of servers, traveling from your device to the recipient’s phone. This efficient process ensures that your messages are delivered almost instantaneously, regardless of location.

What is the character limit for SMS?

Each SMS message is limited to 160 characters. If your message exceeds this, it’s automatically split into multiple parts and delivered as a single message to the recipient.

Is SMS secure?

SMS uses network-level encryption to protect the message during transmission. However, for higher security, additional encryption methods may be needed.

How can SMS marketing help my business?

SMS marketing lets you connect directly with your customers through their phones, providing a personal and immediate touch. It’s great for sending time-sensitive offers, updates, and alerts, with an impressive open rate of around 98%.

What are the key strategies for a successful SMS campaign?

Build a quality subscriber list, personalize your messages, and focus on timing and frequency. Always include a clear call-to-action and comply with legal requirements to ensure effective communication.

What types of messages can I send with SMS marketing?

You can send promotional messages to drive sales and engagement or transactional messages to provide essential updates like order confirmations and shipping notifications. Both types serve different purposes but are valuable in maintaining customer relationships.

 
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Olena Holubnyk avatar
Olena Holubnyk
Content Marketer

Olena Holubnyk is a Content Marketer at Phonexa. She is adept at homing in on the intricacies of affiliate marketing, call tracking, and lead generation. Olena's dedication to staying abreast of industry advancements underscores her commitment to delivering informative and inspiring content.


Education: Ivan Franko National University of Lviv

Expertise: Digital marketing, affiliate marketing, call tracking, lead generation

Highlights:

  • 8+ years of proficient writing and editing skills, with a focus on digital copywriting

  • Strong work ethic, perseverance, and a talent for quickly grasping new concepts

  • Enthusiastic about the arts, particularly photography and painting

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