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Jul 15, 2018
5 MIN READ

What Is Application to Person (A2P) SMS Messaging

A2P (Application to Person) SMS messaging is rapidly becoming one of the most popular services that both large enterprises and small businesses use to engage their customers and provide them with much better brand experiences. The A2P SMS market is growing at a very fast pace and it is predicted to continue growing consistently for at least several more years.


According to the latest market research by Mobilesquared, the global A2P SMS traffic is expected to grow from 1.67 trillion A2P SMS messages send worldwide in 2017 to 2.80 trillion A2P SMS messages by 2022. When it comes to the market revenue, the global A2P SMS market is expected to reach $70 billion by 2020 if it continues growing at a CAGR of approximately 4%, according to the latest Zion Market Research report.


But, what exactly is A2P SMS messaging? As opposed to P2P (Person to Person) SMS messaging, which is regular two-way SMS messaging that almost all of us use on a daily basis, A2P SMS messaging is one-way messaging. It refers to the process when you, as a mobile user, receive an SMS from a particular business application to which you are not expected to reply.


A2P SMS messaging is also referred to as professional or enterprise SMS messaging, as businesses use it to communicate with their customers and inform them about new products, new promotions, sales and discounts and much more, as well as to authenticate the users of their online services and send time-sensitive alerts.


So, why is the A2P SMS market booming and making businesses of all sizes jump on the bandwagon and follow this fast-growing trend? Here are the key factors that are contributing to the continued growth of the market.

 

 Related: How to Integrate Your SMS Text Messaging Campaign with Other Marketing Strategies

 

98% of SMS Messages Are Read – Typically within 3 Minutes


Businesses still use email to reach out to their customers, but did you know that email open rates are significantly lower than SMS open rates? With a 98% SMS open rate, as opposed to 20% email open rate, it doesn’t really come as a surprise that businesses are increasingly turning to A2P SMS messaging to reach out to their customers and engage them in their brand.


Additionally, SMS messages are typically read within 3 minutes and their click-through rate is 19%, whereas email click-through rate is 2%. This relevancy and engagement rate is yet another reason why more and more businesses are using SMS to attract consumers and generate more leads and conversions.

 

The Never-Ending Rise of Mobile Use

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The ever-increasing mobile use is another factor driving the A2P SMS market. If the demand for smartphones wasn’t as high as it is, it wouldn’t matter much that SMS has such a high open rate, would it?


It is a fact that people these days are greatly using various OTT (over-the-top) messaging apps, such as the famous Facebook Messenger, WhatsApp, Viber and Skype, but no one has really stopped using SMS on a daily basis, and there is no indication whatsoever that they ever will.


Business organizations are using that to their advantage by deploying professional enterprise solutions or leveraging SMS API integration (merging their website or app with a particular SMS gateway), which is the most popular deployment method for A2P messaging.

 

Personalized Customer Experiences


A2P SMS messaging enables businesses to send personalized SMS messages to their customers and effectively engage them in their brand. They allow them to forge strong and meaningful relationships with the consumers who have downloaded their app or signed up on their website and subscribed to receive messages and notifications from them.


This allows organizations to apply a customer-centric approach when sending SMSs to their consumers and focus on providing them with real value with every single message and alert they send. This may sound impossible when you think about thousands of customers that you may have, but that is where bulk SMS services come in.


Bulk messaging enables you to send a large number of SMSs and make sure that all your recipients receive the same quality of service. With Textedly’s mass text messaging service, you can send as many SMSs as you want to as many people as you want – within seconds. We will never limit your subscriber list and all your data and information will always be 100% safe and secure due to our state-of-the-art SSL technology and encryption.


Cost-Effective Method of Communication


a2p-businessMany businesses are still a bit skeptical when it comes to SMS marketing and A2P SMS messages because they believe that the service would cost them too much, especially if they start sending bulk SMS messages. Since they consider it too expensive and don’t really think that it would help them generate many leads and a high return on their investments, they simply stick to their email and other marketing campaigns.


 

However, A2P SMS is incredibly cost-effective (even mass text messaging services) and, given the 98% SMS open rate, it really goes without saying that this is not something that you should consider an expense, but rather a smart investment that will absolutely bring you lots of leads and a high ROI.

 

No Internet Connection Required


As you know, you don’t need an Internet connection to send or receive SMS messages. Therefore, your customers don’t need to be connected to the Internet in order to receive A2P messages from you, which means that you can reach them anytime and anywhere.


This is a huge advantage over all those OTT messaging apps, especially since there are still a lot of countries around the world with plenty of areas where an Internet connection is not so reliable, not to mention that there are places with no Internet connection at all.


There are several popular myths about SMS marketing that are still preventing many organizations from hopping on the A2P SMS bandwagon and enhancing customer experiences, but you have certainly learned by now that this method of communication is truly excellent for generating more leads and conversions and increasing your revenue.


You can start your  SMS campaign today and see for yourself how beneficial it is by trying our SMS texting platform – for free. We offer a 14-day risk-free trial, so feel free to check it out and see how it fits your business.

 

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