How To Monetize SMS Marketing Messages?

Text messaging is one of the most common forms of communication. Since its introduction in the early 1990s, this technology has continuously grown in popularity and functionality. Even though there are other socialization channels invented, such as Facebook, short message service (SMS) remains one of the most effective because it favors consumers from all social classes. 

Many companies still prioritize this communication channel in their marketing strategies and invest in reliable sms marketing services to reach the target audience right on their phones. Most marketers use the application-to-person (A2P) system to send their marketing messages to prospective customers. However, statistics show that the A2P sector is not yet fully monetized, which means many mobile operators are still losing money through unpaid traffic. 

So, if you’re wondering about some ways to ensure that you make money from SMS marketing messages, this article will discuss that. Keep reading to learn more.

What Is A2P Monetization?

A2P messaging is SMS traffic whereby the customers receive messages from an application rather than an individual.

Moreover, A2P monetization is the optimization of this traffic for profit generation. One advantage of implementing this aspect is that you’ll eliminate all grey routes and ensure that they generate revenue for every delivered SMS. You’ll also have complete control over your network traffic, allowing you to make better business decisions. 

• Invest In An SMS Firewall

An SMS firewall is the first thing you’ll need in your A2P monetization strategy. This technology blocks any alternative routes that marketers could use to avoid charges. When a text message lands on your network traffic, this SMS filter will scan the source and route used by the SMS. 

Once this is done, the program will categorize the message as either application-to-person (A2P) or peer-to-peer (P2P) and subsequently block the grey routes. This process ensures the implementation of A2P termination over authorized routes hence eliminating any revenue leakage. 

Keep in mind that marketers are always trying to cut their operational costs. As such, it’s common to come across ‘disguised’ A2P messages channeled through the P2P channel. Therefore, you must invest in a reliable SMS filter that will concentrate on primary A2P texts and the disguised ones.

• Set Reasonable Rates

After investing in a proper filtration system, it’s time to decide on the amount of money you want to earn from every SMS delivered. However, you must be careful with the value you choose here because price elasticity is significant in this sector. 

The marketers currently using your services are likely to shift to other providers when they find that your SMS charges don’t favor them. If the new rate is beyond what users are willing to pay, the usage volume will drop significantly. 

Of course, some will be ready to stick around. But the revenue from these remaining messages won’t offset the amount lost from those users you scare off. Therefore, you need to research your network users’ financial ability thoroughly. With that information in mind, you can go ahead and set a price that will deter spam but not relevant commercial parts of your traffic. 

Every market has a specific price range that it can bear. For instance, some marketers are okay with two cents per message, while others may find that rate too high. Therefore, you must find a sweet spot for every market and charge them accordingly.

• Make Your Own Rules

It’s worth noting that there are no strict rules governing A2P monetization. For instance, you can monetize a service as international provided you’re headquartered outside your market’s country or are operating in more than one country. That said, it’s still imperative that you build an effective financial relationship with your partners to avoid losing traffic due to misunderstandings.

Conclusion

Mobile SMS marketing has been around for many years and plays a vital role in modern marketing strategies. While marketers are working hard to make sure their companies make more profits, mobile operators are losing money through unpaid A2P SMS traffic. 

If you’re one of those network providers, all is not lost. You can still make money from such marketing messages by investing in an SMS firewall. This software program will help you classify text messages into A2P and P2P, making it easier to differentiate between them. In addition, the technology is designed to block any grey routes currently utilized by marketers. 

Once you have your system up and running, it’s essential that you set reasonable rates. You don’t want to lose the A2P traffic that would’ve, otherwise, generated substantial revenue for your company. But that’s not to say you should avoid making and implementing your rules.