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How Much Does SMS Marketing Cost?

 

In the video above, Tatango CEO Derek Johnson answers the question: “How much does SMS marketing cost?” Prefer to read instead? No problem, please see the post below. You can also find answers to all of your SMS marketing questions in our Q&A video library; click here to browse.

 

What Is SMS marketing?

SMS marketing is a form of marketing where brands and organizations use text messaging to send subscribers value-adding content. In SMS marketing, consumers opt in to a text marketing campaign to receive alerts, offers, and promotions from a brand.

 

 

How Much Does SMS Marketing Cost?

To understand the cost of SMS marketing, there are a few components that contribute to the cost.

 

Short Codes & Short Code Hosting Costs

To send and receive messages, a brand must lease a short code. A short code is a 5- to 6-digit phone number that is used by brands and organizations to communicate with their customers.

There are two main types of short codes to consider: vanity and non-vanity short codes.

  • A vanity short code is a short code that is specifically selected by a brand for its attributes or other features. A vanity short code costs $1,000 per month to lease. Vanity short codes are sometimes chosen over non-vanity short codes because the brand or organization has more control over the selection of digits, so it can choose a number that is easier for consumers to recall. For example, vanity short codes would be numbers like 12345, 313131, 711711, etc. The base price of any vanity short code costs $1,000 per month.
  • A non-vanity or random short code is a short code randomly selected by the CSCA (Common Short Code Administration). Compared to vanity short codes that are selected by the brand, non-vanity short codes are generated at random by the CSCA and then approved for use. For example, non-vanity short codes would be numbers like 39732, 958372, 34930, etc. The base price for non-vanity short code costs $500 per month.

 

SMS Software Providers & Short Code Provisioning Costs

Once a brand leases a short code, it provides them with access and ownership over the phone number, but to send and receive messages, the brand has to activate the number. This process is called short code provisioning. After a brand’s short code is approved, the brand must find an SMS software provider like Tatango, to host and manage the short code and provide the software, support, and industry expertise needed to run a successful SMS campaign.

Tatango’s software allows marketers to build, manage, and launch a variety of text messaging campaigns, without requiring a developer or external resources. Since Tatango’s software is web-based, it can be accessed anywhere, anytime. Learn more about Tatango’s platform here.

 

Messaging Costs

The final component that contributes to the cost of SMS marketing are the messaging fees. Typically, most SMS software providers don’t include messaging fees within the software. Instead, brands pay per message sent and received. Tatango users only pay for messages that they send or receive. Tatango’s messaging fee structure allows brands to have complete control of their text message marketing spend.

Interested in learning more about what it would cost to send SMS messages? Check out our free SMS message cost estimator here.

 

Learn More About SMS Marketing

Interested in learning more about what you can do with Tatango? Talk to one of our SMS marketing experts. Or, check out more great SMS marketing examples below.