How much does SMS marketing cost in 2025

One cannot underestimate the effectiveness of the strategy in conveying messages to clients in the shortest time possible, not forgetting that as we approach 2025, the strategy is still very relevant. But as is evident with most marketing channels, SMS has its drawbacks that firms have to be willing to pay for. Whether you are sending one message or thousands, knowing what influences pricing is useful in making decisions. That is why in this article, we are going to explore the expenses of SMS marketing in 2025 and learn how to act in this situation.

What is the cost of SMS marketing?

SMS marketing expenses depend on the number of messages sent along with marketing scope and app features. Standard SMS costs $0.01 to $0.05 for one text, and MMS costs $0.03 to $0.10 because of its multimedia elements.

Each standard SMS message has a 160-character limit, so extending a message requires multiple segments which increases cost. Bulk message services make text expenses more affordable, while subscription plans from $20 to $1,500 per month suit businesses of all sizes. (Note: Falkon SMS texting plans starting from $14.99/month)

Businesses need to pay fees to use specific phone numbers and registration codes for SMS offerings. You must pay $0.05 to $0.20 for each international message you send based on where it goes. Advanced platform tools that automate tasks and analyze data increase costs while generating higher returns on investment. Companies can operate successful SMS campaigns by controlling message length and choosing budget-friendly options.

Why SMS Marketing is Still a Cost-Effective Choice in 2025?

Hence, SMS marketing still holds its ground in 2025 as it is still affordable and gets unprecedented engagement rates. The cost of these messages ranges between $0.01 to $0.05 hence affordably allowing businesses to make an impactful communication without spending much.

It’s affordable due to its favorable bulk messaging discounts and simple pricing that any business venture, ranging from new startups to large ones, can afford. The open rate being above 98% guarantees that the messages are seen right away, as the delivery time is within minutes making SMS marketing even better than email marketing and social media marketing when it comes to making people respond quickly.

The second advantage is a direct and targeted use of funds, meaning that no money is spent on intermediaries and on services that do not directly relate to their key tasks. Marketing communication, especially via SMS, can be directly customized with the customer's name, their preferred product varieties, or the geographical region of their operation, making the communication more relevant and appealing.

One of the specific advantages of text marketing is that it does not depend on the availability of the Internet, and thus, the information is conveyed to customers in locations with low connectivity. This explains why the platform is scalable and flexible, making it well-suited to reach broader audiences while remaining affordably priced in 2025, further confirming that SMS marketing is a reliable and cost-effective tool.

Factors that influence SMS marketing costs

The pricing of SMS marketing is based on such factors as campaign size or geographical target area and the features of the selected platform. To estimate your SMS marketing budget, consider these key factors:

Message volume and frequency

The total number of messages exchanged also affects costs, as companies must pay for each message they send. One advantage of sending messages in higher volumes is the reduced per-message cost through bulk discounts. However, frequent campaigns may either result in savings or incur additional costs, depending on the provider’s pricing structure.

Message type: SMS vs. MMS

The most basic form of mobile communication is Short Messaging Service (SMS), which remains more affordable than other communication methods, typically costing between $0.01 and $0.05 per message. However, Multimedia Messaging Service (MMS), which includes images or videos, is more expensive, with costs ranging from $0.03 to $0.10 per message.

Geographic reach

Currently, it is more cost-effective to send messages to domestic audiences than to those in foreign markets. The cost of international campaigns varies by country, as some countries impose higher carrier fees that can significantly impact overall expenses.

Platform features and tools

Automated features, advanced market analysis, and integration with customer relationship management systems often require more expensive subscription plans. However, these features can significantly enhance productivity and increase return on investment, making them well worth the cost. If you’re looking to access these premium texting features in a cost-effective way, try Falkon SMS.

Dedicated numbers and compliance costs

Supplemental monthly fees apply if clients use dedicated SMS shortcodes or, more commonly, 10DLC numbers. In addition to regulatory charges, other qualification and commitment fees, such as carrier enrollment fees, are also included in the overall cost.

 Personalization and customization

The challenge mainly arises when campaigns are highly segmented based on customer names, specific offers, or locations, as these elements often require advanced tools that can lead to additional costs over time.

Regulatory and carrier requirements

Carrier charges and other local ordinances play a significant role in determining pricing, especially where compliance is critical or certain fees carry a premium.

What is the ROI of SMS marketing?

SMS Marketing Produces a Great Return on Investment. It delivers strong returns for companies, making it a cost-effective choice compared to other marketing methods. Businesses typically earn between $5 and $45 for every dollar invested, depending on how well the campaign is executed. This success is driven by high engagement, low costs, and the ability to send personalized messages directly to users.

Why SMS marketing yields a high ROI

Outstanding Engagement Rates - SMS messages are incredibly effective at grabbing attention, over 98% are opened immediately, usually within 3 to 5 minutes. This immediacy encourages quick action from recipients.

Cost-Effective Messaging - Businesses can reach large audiences at a low cost, typically between $0.01 and $0.05 per message. The affordability, combined with the ability to target specific groups, significantly enhances marketing value while keeping costs in check.

Superior Conversion Rates - SMS marketing converts an impressive 29% of recipients into customers, outperforming email and social media. Its direct and personal nature drives immediate responses, whether it’s a purchase, a sign-up, or scheduling an appointment.

Broad Industry Applications - From retail and healthcare to real estate and hospitality, SMS marketing supports growth across industries. Companies can send time-sensitive promotions, appointment reminders, open house alerts, and more, tailored to their specific needs.

Actionable Insights Modern SMS platforms provide analytics that show delivery rates, link clicks, and conversions. These insights allow businesses to refine their strategies, improve performance, and boost profits over time.

How to Select the Right SMS Marketing Provider

The success of your SMS marketing campaign depends largely on choosing the right SMS marketing provider for your business. To make an informed decision, consider the following factors:

Features and capabilities

Look for a provider that offers automation tools, personalized messaging, analytics, and customer segmentation. Beyond basic messaging, the platform should support keyword tracking, interaction management, and CRM integration to enhance your marketing efforts.

Cost and pricing transparency

Evaluate the pricing structure, including message rates, subscription fees, compliance checks, and setup costs. Ensure the provider’s pricing aligns with your budget, and check for volume discounts or tiered pricing as your message volume increases.

User-friendly interface

A simple, intuitive interface allows you to easily create, schedule, and monitor campaigns. A user-friendly dashboard increases productivity and makes it easier for your team to manage campaigns efficiently.

Deliverability and performance

Choose a provider with a proven track record of high deliverability rates and a robust infrastructure capable of supporting large-scale campaigns. Timely delivery is critical for effective communication.

Compliance and data security

Select a provider that complies with TCPA and GDPR regulations and offers clear opt-in/opt-out processes. Strong data encryption and access controls are essential for protecting customer information and maintaining trust.

Integration options

Ensure the provider integrates seamlessly with your existing business tools and platforms. Smooth integration supports workflow automation and keeps your data centralized and organized.

Customer support

Reliable customer support is essential for resolving issues quickly and getting assistance when needed. Look for providers offering multiple support channels, including live chat, email, and phone.

Reviews and reputation

Research customer feedback to gauge the provider’s reputation. Look for providers with a solid track record, industry experience, and consistent positive performance.

Looking for all these features in one place? Falkon SMS is the way to go.

Conclusion

In this regard, we’ve observed that the cost of SMS marketing in 2025 is influenced by several key factors. Message frequency, user-friendliness, and feature set should all be considered when allocating your marketing budget. Understanding these pricing dynamics empowers you to develop and launch impactful campaigns with optimal results.

Ready to dive into SMS marketing? Falkon SMS is the right partner offering some of the most affordable and effective texting solutions on the market.