8 Text marketing trends and predictions for 2024

As we usher in 2024, we couldn’t help but notice how the SMS marketing landscape is rapidly evolving, blending traditional techniques with innovative strategies.

In this article, we delve into the latest text messaging trends and predictions shaping text message marketing in the upcoming year. From the integration of AI and personalized messaging to the rise of interactive SMS campaigns, we will explore how these advancements are revolutionizing the way businesses connect with their audience. Let’s begin.

2023 Retrospective

According to “The State of Messaging” report issued by Customer.io, more and more brands are reaching out to consumers on their phones, where they spend the majority of their digital time.

Although the number of mobile messages sent increased overall, in-app and SMS witnessed the biggest rises, emerging as the fastest-growing channels in 2023, with a 47% increase throughout the year.

As text messaging becomes a more common form of communication, businesses are increasingly participating in the conversation.

In 2023, the volume of SMS messages skyrocketed, a reflection of brands’ increased use of mobile communications. Growth in this channel is especially important for businesses without apps since they can’t use in-app or push notifications.

While all brands used SMS more frequently, three sectors jumped into the fray significantly:

• FinTech substantially increased its SMS market share from 2022 to 2023, rising by 50%.
• Healthcare sent three times as many text messages as the year prior, but sent very few texts overall.
• SaaS showed a mere 7% gain in revenue compared to the previous year, despite being the second most active industry in terms of SMS usage.

For a more comprehensive and detailed retrospective, we invite you to explore our in-depth article on Text Messaging and SMS Marketing Statistics in 2023, as it offers a thorough analysis and insights into the trends, behaviors, and impacts observed in text messaging and SMS marketing throughout the past year.

A word from our CEO

Textmagic is aligned with the significant industry shifts, especially the November 8 requirement for mandatory registration of all toll-free numbers previously labeled as ‘unverified’, now reclassified as ‘restricted’. Messages sent from numbers awaiting registration will face blocks and incur fees, with a reevaluation of messaging limits on the horizon.

As we look towards 2024, these updates suggest a global shift toward stricter SMS marketing regulations designed to combat spam and fraud. Globally, we’re seeing a trend towards stricter rules, from the US’s initiative to block robotexts from invalid numbers to the UK’s rigorous sender ID regulations to Australia’s obligatory pre-registration for Alphanumeric Sender IDs:

• US – 10DLC Compliance: The US has introduced 10DLC by The Campaign Registry, a consent-based regulatory framework for business-to-individual texts, enhancing communication standards in line with the TCPA.
• UK – Sender ID Regulations: The UK has implemented strict sender ID regulations, prohibiting the use of specific words like ‘Alert’, ‘Info’, and ‘Verify’ since September 2023, and expanding to a list of 121 banned words from October 2023.
• Australia – Spam Act Enforcement: Australia has emphasized enforcing the Spam Act 2003, particularly against businesses ignoring unsubscribe requests, and has banned dynamic Alphanumeric Sender IDs from April 2023 to maintain messaging integrity.

In line with these international trends, more countries will soon implement similar regulations to curb unwanted text messaging, underlining the need for compliance and integrity.

2024 Text messaging predictions and trends

As we anticipate the unfolding of 2024, let’s explore the key predictions that are set to redefine SMS marketing as we know it.

1. Omnichannel marketing

Looking forward to the new year, a strategic move towards omnichannel marketing is expected, focusing on delivering a consistent customer experience across all touchpoints, as opposed to the channel-specific approach of multi-channel marketing.

Brands that excel in omnichannel customer engagement experience a 9.5% yearly growth in annual revenue, in contrast to a 3.4% increase for brands with less effective omnichannel strategies.

The effective use of SMS marketing within an omnichannel strategy can significantly contribute to revenue growth. As the statistic above suggests, a well-executed omnichannel approach, which includes text messaging, leads to higher annual revenue increases.

Key points:

• Integration of SMS into omnichannel strategies: In 2024, SMS marketing is expected to be more seamlessly integrated into comprehensive omnichannel strategies, ensuring a unified customer experience across all platforms.
• Better customer data analysis: This integration will allow for more comprehensive analysis of customer data, offering deeper insights into customer behavior and preferences.
• Cross-channel synergy: A significant trend will be the creation of synergies between SMS and other channels like email, social media, and web, ensuring a cohesive messaging strategy.

Key drivers:

• Rising demand for seamless experiences across channels is catalyzing the move towards omnichannel marketing.
• Expanding mobile channels is crucial for boosting engagement and strengthening customer relationships.
• Businesses are increasingly recognizing the advantages of cohesive omnichannel experiences over fragmented multi-channel strategies.

2. Personalization

Personalization is the key to brand awareness across all channels, and most brands consider it to be very significant or essential in their messaging plans.

This trend is driven by the need to stand out in a crowded market and cater to the growing demand for tailored consumer experiences. Brands that successfully implement advanced personalization strategies in 2024 are likely to see improved customer engagement and brand loyalty.

Key points:

• Importance of personalization in brand awareness: Brands have recognized that personalization is not just a feature but a fundamental aspect of effective communication across all channels. Personalized messages are more likely to capture attention and create memorable experiences, thereby boosting brand awareness.
• Central role in brand strategy: A significant majority of brands – 81% – acknowledge the importance of personalization in their messaging strategies. This statistic underscores the shift from generic to tailored content in consumer interactions.
• Increased focus in 2024: A notable 73% of brands are planning to intensify their efforts in personalizing content in the next year. This shift indicates a strategic move towards more targeted, relevant, and engaging SMS marketing campaigns.

Key drivers:

• Consumer demand for relevant, customized communication.
• Advancements in technology enable more precise and efficient personalization.
• Higher engagement and conversion rates are achieved through personalized messaging.

3. AI revolution

In 2023, the advent of generative AI has revolutionized SMS marketing by enhancing its personalization and conversational quality.

Nevertheless, the integration of AI into text messaging presents numerous opportunities for marketers, it also brings to the forefront concerns regarding data privacy and security, the integrity of generative content, licensing costs, and unclear intellectual property rights.

Key points:

• AI as a dual force: Marketing professionals view AI both as a potential barrier and as an opportunity for growth. This dual perspective reflects the dynamic and evolving nature of AI in the marketing landscape.
• Continued expansion of AI: There is no indication that the swift spread of generative Al tools in 2023 will decrease. This ongoing expansion indicates a growing integration of AI technologies in marketing strategies.
• 2024 vision for brands:

1. Increased AI adoption – 47% of brands plan to increase their use of AI in communications, reflecting a commitment to integrating AI into their marketing efforts.

2. Recognizing challenges – Interestingly, the same percentage of brands (47%) identify the integration of AI as a major challenge, acknowledging the complexities and uncertainties involved in leveraging AI technologies.

Key drivers:

• AI advancements foster more creative and efficient marketing.
• AI tools cater to the rising demand for personalized marketing.
• AI adoption is driven by industry competitive pressures.

4. Effective budgeting

From leveraging automation to optimizing message targeting, the future of SMS marketing in 2024 is not just about reaching audiences – it’s about doing so in the most financially savvy way possible.

Key points:

• Increasing complexity and volume: In 2023, there was a noticeable growth in the volume and complexity of messaging campaigns, and this trend is expected to continue into 2024.
• Budget constraints: Despite the likelihood of this trend continuing, brands do not foresee a corresponding increase in marketing expenditures, indicating a focus on cost-effective strategies.
• Keeping costs down: To align with budget constraints, 71% of brands plan to enhance targeting and segmentation, and 58% intend to leverage marketing automation to boost productivity.
• Role of sophisticated technologies: The key to success in managing these trends may lie in the growing sophistication of automated messaging and customer data platforms.

Key drivers:

• Advanced targeting to meet demand for customized communication.
• Using automation to boost efficiency without added costs.
• Leveraging data platforms for cost-effective and integrated solutions.

5. The 10-DLC impact

In 2024, the adoption of 10DLC (10-Digit Long Code) is expected to be a pivotal trend in text message marketing, particularly following its compliance implementation by major US carriers in 2023.

This trend is driven by 10DLC’s effectiveness in bolstering trust and credibility among consumers. More precisely, this combination of trustworthiness, compliance, improved throughput, and cost-effectiveness positions 10DLC as a major player in the evolution of SMS marketing strategies in the upcoming year.

Key points:

• 10DLC as a privacy and anti-spam initiative: 10-DLC represents the latest effort by major carriers like Verizon, T-Mobile, and AT&T to combat spam and enhance privacy in mobile communications by requiring explicit messaging consent.
• Specific target group: Its applicability is primarily to A2P (Application-to-Person) marketers sending over 3,000 promotional messages daily, excluding those using shortcodes or registered toll-free numbers.
• Improved deliverability: With carriers like Verizon having transitioned to 10-DLC, messages from unregistered numbers will be restricted, enhancing deliverability of approved messages.
• Cost efficiency: Carriers have announced cost increases for using regular lines for promotional messages while offering substantial reductions for 10DLC users.

Key drivers:

• Major telecoms are spearheading efforts for enhanced messaging privacy and spam reduction.
• Businesses are aligning with new privacy and security regulations, making 10DLC a strategic necessity.
• Growing consumer demand for secure communication is accelerating the adoption of 10-DLC.

6. Interactive SMS campaigns

In 2023, interactive content, such as certain SMS/MMS campaigns, attained a 70% conversion rate, surpassing the 36% rate achieved by passive content.

In the upcoming year, text message marketing is expected to further evolve towards increasingly interactive campaigns that directly engage customers and encourage active participation. This will elevate the traditional text message to a more dynamic communication tool.

Key points:

• Enhanced engagement techniques: Interactive campaigns will likely utilize innovative techniques like polls, surveys, and real-time feedback options. These methods not only engage customers but also provide valuable data.
• Integration with other technologies: Expect to see a blending of text messaging with other technologies, such as QR codes and links to multimedia content, offering a more enriched and engaging user experience.
• Engaging a diverse audience: Since texting is accessible to a wide range of people, interactive text message campaigns can engage a more diverse audience. This includes individuals who might not be active on digital platforms like social media or email but still use basic mobile phones. By tapping into this broader audience, interactive campaigns can achieve greater impact and inclusivity.

Key drivers:

• The shift towards interactive SMS campaigns is driven by the need for deeper customer engagement and personalized communication.
• The merging of SMS with other digital technologies is a key driver, enhancing the interactivity and effectiveness of SMS campaigns.
• Interactive texts provide valuable customer data, which can be leveraged for more targeted and effective marketing strategies.

7. SMS as a customer service platform

The continuous usage of text messages as a customer service platform is another trend in SMS marketing. In 2023, 70% of mobile users expressed a preference for using text messaging to troubleshoot an issue, while 64% indicated a desire to utilize it for making purchases or bookings.

Looking towards 2024, the constant availability of texts, unlike other marketing formats such as email, continues to be a significant trend. The ease of sending and receiving text messages, accessible to anyone with even basic cellular service, contributes to impressive click-through rates, further cementing its role in the evolving landscape of marketing strategies.

Key points:

• SMS automation in customer service: Utilizing SMS marketing for customer service is becoming increasingly popular, with automated chatbots being a simple yet effective tool. These chatbots can handle basic interactions, like clarifying customer needs through simple prompts.
• Live customer support via SMS: An alternative to automated responses is setting up live text message interactions between support teams and customers. This approach personalizes customer service, providing a more engaging experience.
• Enhanced accessibility and assurance: Offering SMS support, both automated and live, makes customer service more accessible. This method reassures customers, helps them make purchasing decisions, and fosters stronger customer relationships and loyalty.

Key drivers:

• Automated SMS chatbots offer a fast and effective way to handle customer queries, becoming essential for business efficiency.
• Growing consumer preference for direct and personalized communication is met by live SMS support.
• Prompt and effective text responses are key to building and maintaining customer loyalty in a competitive environment.

8. SMS as a sales accelerator

In addition to providing customer service, SMS marketing is anticipated to continue to be a major source of revenue for companies. In 2023, text messaging outperformed sales calls and cold calling in terms of lead conversion rates, achieving a 15% success rate compared to just 1% for cold calls.

As we look toward 2024, integrating both email subscriptions and SMS databases into an omnichannel marketing strategy emerges as a key trend, poised to significantly boost profits. This approach underscores the growing importance of text messaging, making it just as important as your email subscribers.

Key points:

• Enhanced customer engagement: Turning customer engagement into profit is set to be a significant trend in 2024, particularly in SMS marketing. The intimate nature of text messages positions them as a powerful tool in conversational marketing.
• Trust building through familiarity: Text message marketing taps into the personal space of users, akin to messages from friends and family, thus creating a sense of familiarity and trust. This is particularly effective in e-commerce, where trust directly correlates to increased sales.
• Leveraging active customer interest: The fact that customers open text messages is a strong indicator of their interest. Businesses can exploit this direct communication channel to better understand and meet customer needs with targeted offers like discounts and promo codes. This strategy not only meets customer expectations but also fosters loyalty, encouraging repeat business.

Key drivers:

• SMS marketing is effective due to its presence in users’ personal messaging spaces, enhancing trust and attention.
• Active engagement in SMS marketing offers direct insights into customer preferences and behaviors.
• Texting caters to the modern consumer’s desire for quick satisfaction with immediate offers, boosting loyalty and repeat business.

Conclusion

As we conclude, it’s clear that in 2023, text messaging established itself as a preferred communication channel for more than half of all brands, highlighting its growing popularity and effectiveness.

For brands lacking a mobile app, SMS is poised to remain a crucial component of their mobile messaging strategy in 2024.

On the other hand, for businesses with a mobile app, enhancing their in-app messaging will be equally vital. Despite the rise in in-app messaging usage in 2023, a mere 3% of brands managed the majority of customer interactions through this medium.

This suggests a strong opportunity for companies to fine-tune their in-app communication strategies in 2024, aiming to significantly enhance customer engagement.