With open rates of up to 98%, increased scalability, higher customer outreach, brand engagement, and targeted SMS marketing campaigns, SMS marketing pricing offers significant value for money and a good return on investment compared to other forms of digital marketing. Email or social media marketing targeted at customers might not be as effective due to high investment rates and lower customer engagement, with many users flagging marketing campaigns as spam. Hence, it could be beneficial for business organisations to consider using bulk messages to suit the needs of their SMS marketing campaigns.

When considering bulk messaging options, businesses need to make a general enquiry into how various platforms and service providers have different text messaging pricing plans. They should be mindful of several factors that can influence the pricing of their SMS marketing campaigns. Key factors include the cost of sending a single message and the cost of sending messages in large volumes. In addition to this, business houses need to consider the platform subscription fees, which may need to be paid periodically. They also need to be aware of the number of characters they intend to use in their text marketing campaigns. A maximum of 160 characters can be used in a standard text message, though if the text includes special characters, it is limited to 70 characters. Businesses can extend their use of characters up to 640 depending on the requirements of the campaign. If necessary, they should also factor in additional setup charges. Scalability and the level of customer support offered by different platforms are also important considerations.

SendHub offers some of the most effective solutions for SMS marketing campaigns. It provides a range of plans to suit your marketing size and needs, depending on the scale of your business. Additionally, it is an excellent option for start-ups and small-scale businesses, as there are no extra hidden costs. It also offers a number of discounts based on the volume of messages sent. Importantly, SendHub provides bundled accessibility, so customers do not need to pay separately to access individual features. Payments are mostly on a monthly basis, freeing businesses from long-term financial commitments, and the pricing process is entirely transparent.

Direct SMS marketing costs.

There are several direct SMS marketing costs that influence the pricing of SMS marketing campaigns. Each of these costs will determine the effectiveness of the marketing campaigns and the return on investment from these campaigns. As a general rule, the effect of SMS marketing is fully realised only if the return on investment is greater than the costs incurred to set up SMS marketing campaigns.

Hence, businesses need to be mindful of some of the core costs that they must consider before opting for a plan suitable for their marketing needs. These costs include SMS marketing platform fees, messaging fees, compliance and handling charges, phone number types, and additional costs. Each of these costs is explained in detail in the following subheadings.

SMS Marketing Platform Fees 

Each SMS marketing campaign requires a platform to send bulk SMS. These platforms offer features such as bulk messaging, metrics, voice automation, and other embedded functionalities unique to the platform chosen by the business. The prices are largely influenced by tariffs and rates specific to the platform, the size of the business, its marketing needs, the country in which the business operates, the volume of messages, message length, and platform subscription fees. Typically, businesses are charged either monthly or annually by the platform service providers.

They are generally delivered through the SaaS (Software as a Service) model, and the pricing tier of text marketing software usually involves a three-tier pricing model which includes free plans, paid plans, and enterprise-level pricing.

  • Free plans: Free plans are typically designed for small businesses. These plans offer limited features and access. The total number of bulk messages that can be sent by a business choosing a free plan is capped at 100 or 200 SMS. Additionally, free plans only provide basic templates and automation tools, which are email or chat-based. These plans do not offer access to features like segmentation or analytical tools.
  • Paid Plans: Paid plans are usually suitable for medium to large businesses. There are different pricing models within paid plans. These include costs charged per SMS, charges based on SMS volume, and a hybrid pricing model in addition to platform subscription fees. Before selecting the appropriate model for their marketing campaign, businesses need to pay platform subscription fees at periodic intervals, which are usually monthly or annually. The cost for a single message varies according to the country and mobile carrier. High-volume or bulk messages are largely determined by the number of SMS sent, and platforms may offer volume discounts.Additionally, businesses, depending on their marketing needs, may also opt for a hybrid model that combines both cost-per-message and message volume. This type of model offers businesses broader features such as segmentation, analytics, CRM (Customer Relationship Management), and contact segmentation.
  • Enterprise-level pricing: This pricing model is primarily aimed at large-scale businesses that want to send high volumes of messages with specific customisation needs. Businesses opting for this type of pricing usually negotiate directly with the service provider, as the volume of messages is typically substantial. In addition to all the features provided in paid plans, enterprise-level pricing models offer businesses 24/7 customer support, advanced API features, data protection services, MMS services, and ERP (Enterprise Resource Planning) integration.

SendHub provides bundled accessibility, which is an integrated feature for businesses, meaning they do not need to pay separately for various platform features.

Messaging Fees 

There are a number of factors that influence messaging fees. Messaging fees can be broadly categorised into cost per message and cost based on the volume of messages sent. Most platforms provide the “pay-as-you-go” plan, which refers to the cost per message in the messaging plan. This typically starts from $0.01 for SMS and $0.04 for MMS. The cost per MMS is higher because it allows businesses to send attachments such as links, photographs, and videos. Other factors that influence messaging fees include mobile carrier charges and the number of characters used for each text message. Texts are usually limited to 160 characters, but if businesses choose to send messages exceeding this limit, the cost increases. Additional factors include messaging frequency, geographical locations, the total number of contacts (as it costs more to send to a larger audience), the number of replies in some cases, and the use of keywords. Regarding costs for large volumes of messages, it depends on the total number sent. Plans generally range from 150,000 to 1,000,000 messages, but businesses sending more than 1,000,000 messages may incur additional charges. In some instances, they may be eligible for bulk volume discounts.

Phone Number Type 

Another factor influencing SMS marketing campaigns is the type of phone number used. There are typically three types of phone numbers: 10DLC (10-Digit Long Code), toll-free numbers, and short codes. 

  • 10DLC: A 10-Digit Long Code consists of 10 digits, usually including the area code. These long codes are phone numbers that can be used for both SMS and MMS, and additionally, they can be utilised for call forwarding. They are among the most cost-effective options for businesses. Even businesses using short codes for SMS marketing campaigns often have a 10DLC as well. However, businesses must pay a registration fee to the campaign registry for choosing a 10-digit long code. 
  • Toll-Free Numbers: Toll-free numbers are national numbers that begin with an 800 or 833 code. These numbers are another cost-effective option as they do not include any additional monthly or registration fees. 
  • Short Codes: Short codes are typically five- or six-digit numbers unique to each business. The cost of short codes is generally higher compared to other phone number types. However, they offer greater deliverability, scalability, and higher opt-in ratios. Short codes also come with additional charges, such as carrier costs, compliance, and provisioning fees. Businesses can choose between shared or dedicated short codes. Shared short codes are more affordable since they are used by multiple businesses. However, businesses using shared short codes can only utilise randomly assigned numbers. Dedicated short codes, on the other hand, are customisable numbers chosen by businesses for specific marketing campaigns. Although the cost of dedicated short codes is higher than shared or random short codes, they offer robust features and superior value for money.

Other fees involving SMS pricing 

There are certain other costs businesses need to consider before purchasing a plan for their SMS marketing needs.

These costs include:

  • Mobile carrier costs, which are usually charged by mobile network service providers. If the SMS marketing campaigns are within the same country, the charges are lower; however, if the campaigns extend internationally, the costs increase as they involve mobile carrier fees for multiple networks across countries.
  • There are compliance charges that businesses need to pay for using messages in marketing campaigns. These charges may include legal, regulatory, or provisioning costs.
  • In addition to compliance charges, businesses must pay registration fees, which involve registering their number with a national or international registry, ensuring the number is verified and authorised for commercial use.
  • Businesses may also face additional costs for specific platform features, such as SMS analytics and data management tools.
  • They may also be required to pay opt-out handling fees if customers choose to unsubscribe from receiving SMS messages.

Real World Cost Breakdown of SMS marketing 

The following is a cost breakdown of an SMS campaigning budget that uses SendHub’s SMS pricing as an illustration.

Platform costs: Since SendHub provides bundled accessibility features, it charges based on the volume of messages sent. These involve the payment of a monthly subscription fee, with each plan offering a specific number of messages and limiting the number of users. In terms of the monthly subscription, the basic plan costs $30 a month for 500 messages and 2 users. The standard plan is priced at $60 a month for 1,500 messages and 4 users. The premium plan costs $120 for 5,000 messages and 6 users. All plans include bundled accessibility, meaning businesses don’t have to pay separately for platform features.

Additional costs: If the monthly SMS limit is exceeded, SendHub may charge an additional $0.012–$0.06 per message, depending on the plan.

Example Calculation:

Standard plan: $60 a month for 1,500 messages.

Additional costs: $0.05 per message after the limit.

If the user has to send 2,500 extra messages, the additional cost incurred would be 2,500 × $0.05 = $125, where $0.05 is the approximate additional cost per SMS after the limit.

Total Monthly cost = Standard Plan charges + Additional cost, i.e. $60 + $125 = $185 a month.

Messaging Expenses may vary based on the plan chosen and the number of SMS sent. For messages sent within the US, the cost is $0.012–$0.03. However, for international messaging, the cost ranges from $0.05–$0.12 per message. Bulk discounts are applicable for purchases of up to 100,000 messages, reducing the cost to $0.012 per message.

Example: If the user wants to send 20,000 messages at $0.04 per message, the cost would be 20,000 × $0.04 = $800.

Optional costs: If a business opts for dedicated short codes, it would cost $600 a month, while shared short codes can cost anywhere from $60–$120 a month. Additionally, custom keywords may cost around $30–$120 a month. Sending MMS typically costs 2–3 times the standard rates.

Return on Investments (ROI) calculation: The key factors in calculating ROI are conversion rates, customer value, and message engagement. Customer value includes both the average order value and the lifetime value.

Example

If we want to send 20,000 messages at $0.04 per message with a 6% conversion rate (1,200 customers), then:

Average cost per conversion = (20,000 × $0.04) = $800 / 1,200 = $0.66 per conversion.

If the average customer purchase is $30, the revenue would be 1,200 × $30 = $36,000.

Thus, ROI = ($36,000 – $800) / $800 = $30 Return on Investment.

This means that for every $1 spent, the business would earn $30 in revenue.

Hence, the above cost analysis, using SendHub’s pricing model, provides a fair estimate of the return on investment earned through SMS marketing campaigns.

How to Calculate SMS marketing ROI ?

SMS marketing ROI is one of the key performance indicators in determining the cost-effectiveness of a business’ SMS marketing campaign. As a general rule, SMS marketing only yields profits if it can generate more revenue than the costs incurred, considering SMS marketing’s significant revenue potential. Additionally, SMS marketing should deliver better conversion rates compared to email and other forms of digital marketing.

Hence, some of the key metrics for determining Return on Investment include sales costs, the expenses incurred for SMS marketing, conversion rates, customer value, and message engagement. Customer value includes both the average order value and lifetime value.

  • Basic ROI

ROI = (Sales Revenue – Marketing Cost) / Marketing Cost) × 100

Where ROI is calculated based on the difference between sales and marketing costs.

  • Customer Lifetime Value (CLV) ROI

CLV-ROI = (CLV of customers from SMS – Cost of SMS campaign) / Cost of SMS campaign × 100

Where CLV refers to the expected lifetime revenue that could be acquired from SMS marketing campaigns.

  • Cost Per Conversion 

If the business wants to calculate the revenue earned per message conversion, the average revenue per conversion might be:

Cost Per Conversion = Total Cost of SMS campaign / Number of conversions

Where the number of conversions refers to the total actions taken from the marketing campaign.

Conversion Rate = (Number of Conversions / Total Number of Messages) × 100

  • ROI based on subscriber engagement 

Businesses can calculate return of investments based on customer engagement in such a case

ROI= (Total Revenue – Cost of Campaign/ Number of subscribers)

  • ROI based on click through rate 

This method is primarily useful for businesses if their marketing goal is to drive traffic to a particular page. In that case ROI is calculated as follows 

ROI= (Revenue from Clicks – Cost of SMS campaign / Total Clicks)

How Profitable is SMS marketing?

SMS marketing campaigns prove to be one of the most profitable marketing options owing to their high engagement rates, personalised deliverability, and increased customer interaction.

Statistics and Case Studies that prove SMS marketing to be effective: 

  • It is estimated that there are 5.3 billion smartphone users globally. Businesses considering SMS marketing as a potential campaign can leverage the global mobile market and expand effectively. 
  • Open message engagement rates have risen to 95-98%, with messages being opened within 3 minutes of delivery. Domino’s, which used SMS marketing during peak business periods, saw a 23% increase in order volume and a 10% uplift in repeat customers.
  • Subway, which ran a loyalty campaign through SMS marketing, enjoyed an impressive $1.5 million return on investment (ROI) on an initial investment of $100,000 in SMS. 
  • According to the SMS Marketing Survey 2025, brands using SMS marketing services saw an average conversion rate of 30%, compared to the conversion rate of 2%-4% achieved through email marketing.
  • Sephora implemented an SMS campaign to retain high-spending customers with exclusive offers. This initiative resulted in a 20% increase in repeat purchases and a 12% increase in customer lifetime value. 
  • Myntra, an Indian fashion e-commerce giant, used SMS marketing to achieve a 40% click-through rate and a 15% increase in sales revenue during peak business periods.

In hindsight, generating revenue through SMS marketing seems to be one of the most profitable ventures for various types of businesses due to its low cost and high engagement ratio. Brands using SMS marketing have successfully achieved increasing returns, whether for time-sensitive promotions, customer retention programmes, brand engagement, or global outreach.

Drive Revenue with SendHub’s SMS marketing platforms

Sign up to SendHub’s SMS marketing services, where high deliverability meets cost efficiency and business affordability. SendHub’s transparency and bundled accessibility automate your campaigns, saving time and delivering personalised services to businesses of any size. They ensure that your messages reach your audience with maximum effectiveness.

Discover the effectiveness of our services through our customer reviews. SendHub’s SMS marketing solutions are customised to suit the needs of your text message campaigns. With constant customer support provided by the platform, are you ready to see your SMS marketing strategies come to fruition? This is where SendHub stands out, where low costs meet efficient and increased brand engagement.

Conclusion 

SMS marketing campaigns in 2025 offer some of the most affordable pricing solutions that suit your marketing needs. It is important for businesses to consider their size, marketing goals, and target audiences before looking into the various methods of accessing SMS marketing.=

Therefore, businesses need to be mindful of the cost of sending a single message, the cost of sending messages in large volumes, subscription fees, messaging fees, additional costs, compliance, registry, and provisioning charges before making the above mentioned decisions.

With high deliverability and superior scalability, investing in SMS marketing campaigns is a wise choice for businesses, as they offer a higher return on investment at lower marketing costs. Statistics prove how effectively businesses have grown through SMS marketing. One of the main reasons why SendHub offers the best SMS marketing campaigns is that its affordable pricing allows businesses to access multiple platform features in a transparent manner. Other platforms may charge separately for accessing each feature, but SendHub offers the best features without charging an additional fee. This gives businesses the opportunity to focus on deliverability and brand engagement without worrying about how to reach customers using different feature-based marketing tactics, as these are taken care of by SendHub’s customisable plans.