Trends & Forecasts in the A2P SMS Market in 2020

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The Coronavirus pandemic has had a profound impact upon businesses across a wide range of industries and the effects are still being felt around the globe.

It is difficult to estimate the overall impact that the pandemic will have in the long-term, but all industry bodies and leaders agree that numerous challenges will need to be overcome to return to previous levels of growth that we were witnessing prior to the start of 2020.

Some of these are already evident, especially in the communications sector where we have witnessed the emergence of numerous platforms and apps since the turn of the year and brands have even changed their messaging and positioning in their relevant markets to adapt to the new reality.

Even the more traditional marketing channels, such as television and radio, enjoyed a resurgence in popularity and regained some of the ground lost to social media and mobile applications in recent years. However, these channels also witnessed an adaption in terms of advertising and brands began to think more carefully around social responsibility, the environment, and wider economic issues.

Despite the increases of those watching television and listening to the radio, people are also spending more time viewing their mobile devices. This is where the SMS can showcase its power and offer another avenue for brands to get their messages in-front of their audience and generate increased revenue.

Why is SMS Marketing important?

SMS Marketing is one of the most reliable and efficient tools available to digital marketers looking to reach and engage with their audience.

Compared with other digital channels, SMS generates high levels of ROI which is one of the most important factors in measuring successful marketing campaigns.

SMS Marketing provides the opportunity to monitor in almost real time the effects of a company’s communication, thanks to the reading confirmation and the monitoring of the most engaged customers.

The main advantages include high open rates, fast delivery of the content (90% of messages are read within three minutes) and versatility.

The channel can be adapted to cater for different sized companies and a variety of marketing goals and that is why it remains one of the most effective digital marketing channels available on the market.

What is A2P SMS and what are its features?

A2P SMS (also called enterprise or professional SMS) is a branch of the SMS Industry that allows companies, governments, or institutions to send notifications or reminders about their products or services.

A2P SMS differs from normal mobile messages because they are sent from business applications to an individual’s mobile phone.

Some of the advantages are high levels of convenience compared to other media, quick delivery and instant communication and a strong level of security, both for recipients and senders.
A text message is simple, concise, and clear, making SMS the ideal channel to support every kind of information.

Which are the trends for A2P SMS Market in 2020?

1. Safety

Even if the industry registered a remarkable decrease due to the closure of many local businesses during the lockdown across Europe between March and June, we saw traffic grow in different areas.

A2P SMS Marketing became crucial in 2020 with the growing need for companies and institutions to provide corporate information, send and receive OTPs and other critical information. Many A2P players are helping emergency services with free access to messaging for alerts, notifications and communications and the trend is going to remain for the upcoming months, too.

Health authorities and agencies are also relying on A2P SMS for communications. An example of this includes messages sent from a hospital to learn the outcome of the results from tests or the confirmation of a medical examination.

2. Security

More digital transactions mean more attention to cybercrime and fraud carried out on debit and credit cards.

Phishing and spoofing are serious threats affecting the digital market and that is why more and more brands are intensifying their security protocols.

A2P SMS currently represents one of the most effective instruments to manage services through two factor authentications or online banking (real time alerts and updates, sending of security codes…).
To help companies in becoming safer and reliable, digital institutions, such as Google, are providing verification services which includes ID sender-registration, displaying of brand description and a blue tick next to the brand logo to provide increased user confidence.

3. Online purchases

Since many local shops closed during the lockdown, there has been significant growth in online purchases both for goods and services.

For small business especially, the possibility to deliver their products directly to a customer’s home has stated the need for more communication with their customers. In this case, the informative function of A2P SMS from eCommerce sites allowed companies to send notifications about discounts or offers to the clients. A2P SMS offers a great business possibility since this kind of information is time sensitive and consequently needs to be received on time.

Which are the forecasts for the A2P SMS Market?

The Covid-19 crisis is going to bring serious detrimental consequences for the global economy, micro-economy, small and medium-sized enterprises, and families probably over the coming years.

It is difficult to forecast how much the digital marketing sector is going to be affected but what is sure is that the acceleration in the digital transformation will impact positively on the A2P market.
Increased eCommerce and less people shopping on the high street means that the digital industry is likely to grow in this regard, encouraging many brands to invest in digital communication rather than on retail marketing.

The constant evolution of G network is obviously a positive factor for the sector and we will see its reach increase further by the end of the year.

A2P SMS remains one of the most effective ways in which brands can reach people around the globe now and in the long-term.