The Beginner's Guide to SMS Marketing for Australian Businesses

You've probably received an SMS from a business at some point — a dentist reminder, a sale alert from a brand you like, a delivery notification. If you're reading this guide, you're probably wondering how to send those messages yourself. The good news: it's far simpler than you think, and it works better than almost any other marketing channel.

This guide covers everything a first-timer needs to know: what SMS marketing is, why it works, the Australian rules you must follow, and how to write your first campaign from scratch.

What is SMS marketing?

SMS marketing is the practice of sending promotional or transactional text messages to customers or prospects via their mobile phones. The messages are sent from a business SMS platform — software that lets you upload a list of contacts, compose a message, and send it to thousands of people at once.

There are two broad types of SMS communication:

• Promotional SMS — marketing messages such as sales, offers, new product announcements, and event invitations. These require customer consent.
• Transactional SMS — functional messages such as appointment reminders, order confirmations, shipping updates, and one-time passcodes. These are often expected by the recipient as part of a service.

Why SMS works — the numbers that matter

SMS is not a new channel, but it outperforms newer ones consistently. The numbers speak for themselves:

• 98% open rate — compared to around 20% for email.
• 90% of SMS messages are read within 3 minutes of delivery.
• SMS click-through rates average 19–36%, versus 2–5% for email.
• 45% of SMS marketing recipients reply or take action.
• Virtually every Australian adult has a mobile phone — there's no app download, no algorithm between you and your customer.

The reason SMS outperforms email isn't magic — it's physics. Notifications appear on the lock screen. Most people check their phone within minutes of receiving a message. Email inboxes are saturated; SMS inboxes are not.

Key terminology you'll encounter

1. 1
   Bulk SMS

   Sending the same (or personalised) message to a large group of contacts simultaneously. Also called broadcast SMS or mass SMS.
2. 2
   Sender ID (Alpha Tag)

   The name or number that appears as the sender on the recipient's phone. Instead of a random number, recipients see your business name — e.g. 'MyClinic' or 'RetailCo'. Requires registration in Australia.
3. 3
   Dedicated Number

   An Australian mobile number assigned exclusively to your account. Customers can reply to it, and it always shows the same number — building recognition over time.
4. 4
   Two-Way SMS

   SMS that allows customers to reply to your messages. Their replies appear in your team inbox for your staff to respond to.
5. 5
   Keyword

   A word customers text to your number to trigger an automated reply. For example, 'Text WIN to 0400 000 000 to enter'.
6. 6
   Opt-in / Opt-out

   Opt-in is when a customer gives consent to receive marketing messages. Opt-out is when they unsubscribe (usually by replying STOP). You must honour opt-outs immediately.
7. 7
   Character limit

   A standard SMS is 160 characters. Messages longer than 160 characters are split into multiple 'parts' of 153 characters each and billed accordingly — but they arrive as one message on the recipient's screen.
8. 8
   Merge fields

   Placeholders like [First Name] that are automatically replaced with the recipient's actual details when the message is sent.

Australian compliance: what you must know

The Australian Spam Act 2003 governs commercial SMS. Non-compliance can result in fines of up to $2.2 million per day. The rules aren't complicated, but they're non-negotiable:

1. Get consent before you send

You must have permission from the recipient before sending a commercial SMS. Consent can be:

• Express consent — the person has explicitly opted in (e.g. ticked a checkbox on your website, entered a competition, or provided their number for marketing purposes).
• Inferred consent — the person has an existing relationship with you and would reasonably expect to hear from you (e.g. an existing customer).

2. Identify yourself clearly

Every commercial SMS must clearly identify who sent it. This is usually done via a Sender ID showing your business name, or by including your business name at the start of the message.

3. Always include an opt-out

Marketing messages must include an easy way to unsubscribe — typically "Reply STOP to opt out." You must process opt-outs immediately and never contact that person again with marketing.

How to build your contact list legally

Your SMS list is your most valuable asset — and it's only valuable if built correctly. Here's how to grow it the right way:

• Website opt-in form — a simple 'Get SMS deals' form with a checkbox confirming consent.
• At point of sale — 'Would you like text updates?' with an in-store sign-up sheet or QR code.
• Existing customers — if they've provided their number as part of a transaction and you're contacting them about similar products/services.
• Competitions and giveaways — 'Text WIN to 0400 000 000 for your chance to win' with clear terms that explain they'll receive marketing.
• Never buy lists — purchased contact lists are almost always non-compliant. The contacts haven't consented to hear from you.

Writing your first SMS campaign: step by step

1. 1
   Define your goal

   What do you want recipients to do? Book an appointment? Claim an offer? Confirm a reservation? Every message should have one clear action.
2. 2
   Identify your audience

   Are you texting all customers, or a specific segment (e.g. customers who haven't visited in 3 months)? Targeted messages outperform blasts.
3. 3
   Write your message

   Start with your business name (if no Sender ID), get to the point fast, include the key benefit, add a clear call to action, and include 'Reply STOP to opt out' for marketing messages.
4. 4
   Check the character count

   Keep it under 160 characters for a single message. If you go over, your platform will show you how many parts you're using.
5. 5
   Choose your send time

   10am–12pm and 5–7pm weekdays perform best for most industries. Avoid early mornings, late evenings, and Sunday mornings.
6. 6
   Send to a test number first

   Always send to yourself or a colleague to check how it reads on a real phone before sending to your list.
7. 7
   Review the results

   Check delivery rates, link clicks, and replies. Every campaign teaches you something for the next one.

Tips for writing SMS that gets results

• Lead with the benefit, not the feature. 'Save $30 today' beats 'Our winter sale is on'.
• Use the customer's first name — it lifts engagement noticeably.
• Create urgency with a deadline: 'today only', 'ends Sunday', 'first 20 customers'.
• Keep your call to action explicit: 'Book now', 'Show this message', 'Click to claim'.
• Don't cram two messages into one. If you have two things to say, send two messages on different days.
• Test different messages on small segments before sending to your full list.
• Match your tone to your brand — a chiropractor and a nightclub write very differently.

What to measure

• Delivery rate — what percentage of messages were successfully delivered? Below 95% may indicate list quality issues.
• Link click rate — how many recipients tapped your link?
• Opt-out rate — how many people replied STOP? Above 1–2% suggests your content or frequency isn't right.
• Conversions — how many bookings, sales, or actions resulted from the campaign?
• Cost per conversion — divide your total spend by the number of conversions. This is your ROI metric.