The global A2P messaging market was valued at USD 71.50 billion in 2024 and is expected to grow at a CAGR of 5.4% from 2025 to 2030, far outpacing email and other communication channels.

This impressive growth is fueled by the need for businesses to connect with their customers in a direct, reliable, and immediate way—a need that A2P SMS messaging perfectly fulfills. 

Businesses can engage their audience effectively by adopting automated systems to send targeted messages. A2P SMS has become a cornerstone of modern customer communication, from marketing campaigns to critical alerts. 

In this article, let’s explore the fundamentals of A2P SMS messaging, its benefits, and some top use cases of A2P SMS.

What is A2P (application-to-person messaging)?

A2P messaging, also known as A2P SMS, is a communication method where businesses use automated systems to send messages directly to consumers or mobile users.

This form of communication is used for various purposes, such as marketing promotions, appointment reminders, order confirmations, or customer service alerts. 

A2P messaging is widely used across industries such as retail, healthcare, and financial services.

How does A2P SMS work? 

A2P SMS uses automated software systems to send text messages from applications to consumers. Businesses integrate these platforms with their CRM or marketing systems to trigger messages for specific actions. 

The messages are delivered via mobile network operators or cloud-based services. This system allows businesses to scale their messaging efforts, sending thousands of messages simultaneously while maintaining a personal touch.

A2P messaging vs P2P messaging

A2P and P2P (Person-to-Person) messaging differ in their usage and structure. Whereas A2P is used for business communications, such as promotions and notifications, P2P is meant for personal conversations. 

The table below outlines the key differences between these two messaging types.

Use cases of A2P texting 

These use cases explain how A2P SMS helps businesses engage with customers efficiently across various industries:

Alerts and notifications

A2P messaging is used to send important alerts, such as account activity or service interruptions, keeping customers informed in real time.

Example: Banks send alerts about suspicious account activity, or service providers notify customers of outages.

Mobile marketing

A2P SMS is also quite effective for sending promotional offers and deals directly to customers’ phones. It’s an ideal medium for reaching customers with time-sensitive deals.

Example: A retailer sends an SMS campaign offering a limited-time discount code for a holiday sale or a flash promotion for Black Friday.

Appointment reminders

Businesses in healthcare, hospitality, and services use A2P texting to remind customers of scheduled appointments. This reduces no-shows and improves customer satisfaction.

Example: A dental office sends a reminder about an upcoming appointment.

Voting and surveys

A2P SMS facilitates customer feedback through surveys or voting systems, making it easy to gather insights.

Example: TV shows request votes from viewers, or businesses send customer satisfaction surveys.

Two-factor authentication (2FA)

A2P SMS is commonly used to send verification codes as part of multi-factor authentication, which adds an extra layer of security.

Example: E-commerce platforms send one-time passwords for account login.

Customer support

A2P messaging can be used for automated customer support, providing responses or updates.

Example: Airlines send flight status updates or tech companies send issue resolution steps.

Order and delivery updates

A2P SMS keeps customers updated on the status of their orders and deliveries. It’s an essential tool for e-commerce businesses to keep customers informed about their purchases.

Example: Online retailers send shipment and delivery time updates.

Benefits of A2P SMS for businesses

A2P SMS offers several benefits for businesses. Here’s a closer look at some key advantages:

High open and engagement rates

Text messages boast a 98% open rate, significantly higher than other channels like email. This means businesses can be confident recipients will see their messages. A2P SMS is an ideal channel for delivering critical updates or promotional offers.

For instance, brands like Sephora and Domino’s use SMS to send promotions and updates, knowing that their messages are almost guaranteed to be read​.

Direct and immediate consumption

Text messages are delivered instantly and read almost immediately. This makes SMS ideal for time-sensitive information. 

For example, FedEx uses SMS to provide real-time shipping updates, ensuring customers receive important delivery information instantly.​

Cost-effective

SMS is a more affordable marketing tool compared to traditional methods like TV or print ads. Retailers often use SMS for flash sales or limited-time offers. Fashion brands like H&M send SMS to announce exclusive sales, reaching large audiences at a fraction of the cost​

Better deliverability

SMS messages have a higher deliverability rate than emails, as they’re less likely to get caught in spam filters. This reliability makes it ideal for customer service notifications, such as appointment reminders from healthcare providers like CVS.​

Scalability

A2P SMS allows businesses to easily scale messaging campaigns, from sending thousands of messages during promotions to personalized notifications. 

Whether you’re a small business or a large enterprise, SMS platforms allow you to adjust your messaging campaigns.

Increased efficiency

Automated A2P SMS campaigns help businesses improve operational efficiency. Companies like Amazon use SMS to send order confirmations and delivery updates, automating customer service tasks and reducing manual effort​.

Improved customer experience

SMS improves the customer experience by providing timely and relevant information such as delivery notifications, appointment reminders, or customer service alerts. This way businesses show they value their customers’ time and needs​.

Detailed analytics

A2P SMS platforms provide detailed insights into customer behavior, such as message open rates and click-through rates. Marketing platforms like EZ Texting allow businesses to track campaign performance and adjust messaging strategies accordingly​.

A2P 10DLC in the US 

A2P 10DLC (10-digit long code) is a messaging system in the U.S. that enables businesses to send application-to-person (A2P) SMS using standard 10-digit phone numbers. 

Introduced by U.S. carriers, A2P 10DLC offers higher throughput, better deliverability, and improved compliance for business messaging compared to traditional P2P methods. 

To use A2P 10DLC, businesses must register their brand and campaign details with The Campaign Registry (TCR) to meet regulatory and carrier requirements. This ensures transparency and reduces spam. 

It’s commonly used for notifications, marketing, and customer service, offering a scalable and cost-effective solution for business communication.

Regulations regarding A2P SMS

Regulations on A2P SMS messaging protect consumers from spam and ensure businesses maintain transparency and accountability. Key global frameworks include:

• Sender ID registration: Register sender IDs with carriers to improve message deliverability and avoid blacklisting
• Content restrictions: Adhere to content guidelines, avoiding spam, scams, and harmful content
• Opt-out mechanisms: Provide clear and easy-to-use opt-out options for recipients (e.g., replying “STOP”)
• Carrier compliance: In the U.S., carriers enforce specific guidelines, such as those for 10DLC (10-Digit Long Code) numbers, requiring businesses to register their campaigns and adhere to throughput and content standards
• Consent: Businesses must obtain explicit consent from recipients before sending A2P messages. This aligns with regulations like the TCPA (Telephone Consumer Protection Act) in the U.S. and GDPR (General Data Protection Regulation) in the EU

Understanding consent types in A2P messaging

A2P messaging requires varying levels of customer consent based on the purpose of communication. For instance:

• Customer-initiated messaging: Implied consent: When a customer initiates a conversation, such as asking about a product or service, their action implies consent to respond.
• Informational messaging: Express consent: Customers explicitly agree to updates like account changes, fraud alerts, or appointment reminders.
• Promotional messaging: Explicit consent: Businesses must ensure customers have confirmed their agreement to receive marketing content.

Non-compliance can lead to fines, legal actions, or carrier bans. TCPA violations can cost up to $1,500 per unsolicited message. Businesses must stay informed to ensure lawful messaging.

Use Plivo CX for your A2P SMS marketing campaign

Launching SMS campaigns can be overwhelming, especially when you’re struggling to reach the right customers, like a clothing brand missing out on holiday shoppers.

Without the right SMS marketing strategy and tools, targeting the right audience is a challenge.

As an omnichannel customer service platform, Plivo CX simplifies campaign management for businesses looking to launch product announcements, flash sales, and new collections through targeted A2P SMS campaigns

Plivo CX helps you connect with your audience in a personalized and automated manner, delivering higher engagement and driving better ROI. 

Here’s why you should choose Plivo CX to launch targeted SMS campaigns:

• Select your audience: Target the right customers with lists and segments

• Choose the channel: Engage customers through SMS, MMS, Email, or WhatsApp
• Send now or later: Manage and schedule campaigns for optimal timing and ROI

• Create your message: Use templates or AI Assist for quick, custom content

• Performance insights: Track key metrics to optimize your campaigns and maximize ROI

• Copywriter AI: Create personalized messages with Plivo CX using AI-powered suggestions and advanced audience segmentation. 

What’s more, Plivo CX taps into Plivo’s proprietary premium carrier network that is spread across 220+ countries. As a result, you can reduce your SMS marketing costs by up to 70% while reaching the right customers at the right time and driving instant engagement.

Sign up for a free demo and see how Plivo CX can optimize your A2P SMS campaigns!