What IsA2P?

A2P stands for application-to-person messaging, meaning a person receives a message sent from an application. In most cases, A2P is done through CPaaS or OPaaS platforms or API integration.

What Is A2P Messaging?

Short for application-to-person, A2P messaging involves the use of a software application to send or respond to text messages. A2P is useful for various types of messages such as SMS reminders, two-factor authentication codes, and SMS marketing. It is an increasingly common tool for businesses that want to reach out to their audience more efficiently without expecting a reply. Many website chatbots are also known to make use of application-to-person messaging.

How A2P SMS Works

Businesses use A2P messaging to communicate with consumers, authenticate users, and deliver time-sensitive alerts in three technical modes:

  • Through a web-based application or software that directly sends mass texts by importing receivers’ numbers
  • Through an API when businesses integrate communication solutions into their existing CRMs or any other type of system
  • Through ready-made integrations on popular platforms such as downloading the Dexatel plugin on WordPress

You can benefit from A2P solutions by sending notifications, reminders, and contextual marketing messages. In each of these instances, a business application initiates the conversation rather than a user's mobile phone.

Examples of A2P Messaging

  • An SMS message with the account balance from the bank
  • A special discount code from an online shop
  • An appointment reminder from the dentist
  • A confirmation message for a flight ticket
  • Shipping notifications regarding delivery updates
  • Reminders of hotel or restaurant reservations
  • Billing updates for changes in upcoming payments

Benefits of A2P Messaging

Speedy Delivery

An application-to-person SMS has a higher delivery speed than email messages, which tend to linger in inboxes for longer periods of time. This makes it a great tool for companies that want to send important messages to their customers, and it is especially ideal for mass texting.

Cost-Effective Method

Marketing campaigns can often be costly. When comparing the amount of money that goes into certain digital channels to the end results, it would seem that some of those channels aren’t very cost-effective. A2P SMS has a higher return on investment and has proven to be the most affordable marketing tool.

Streamlined Communication

With the help of A2P messaging providers, companies can reach out to their audience in just a few seconds. The entire process is automated, with minimal need for human intervention. Companies can also customize the messages so that customers get individualized information about upcoming appointments.

A2P SMS Market Size

Business Wire estimated that the global A2P SMS market was valued at $66.72 million in 2020 and is expected to reach $90.22 million by 2027. The compound annual growth rate (CAGR) is predicted to be 4.39% from 2020 to 2027. Large enterprises zealously adopted this technology to reach their customers directly and efficiently during the pandemic. These numbers are expected to grow significantly in the near future.

The A2P SMS market size is also experiencing rapid development due to virtual advancements, which have brought forth an increase in digital transactions. The ever-growing popularity of AI and analytics integration is only going to positively impact the A2P SMS market.

In any case, it’s impossible to imagine what the A2P messaging market will look like in a few years—so many businesses are choosing to go digital with their means of communication. Simultaneously, OTT messaging providers like WhatsApp and Viber are becoming businesses’ top choices thanks to their rich media features.

Prior to the COVID-19 outbreak, the A2P market was expected to reach $50.1 billion by 2023 with a CAGR of 4.6% during the forecasting period—but, nobody could predict a global pandemic.

North America is the most prominent market for A2P SMS. This is due to the technological developments and text messaging applications for different end-user segments that contribute to the highest revenue globally. In the meantime, the Asia-Pacific (APAC) region is experiencing significant economic growth—particularly in the construction sectors—that’s increasing the demand for A2P services.

Frequently Asked Questions About A2P Messaging

What Is A2P Messaging?

A2P is an acronym for application-to-person messaging. It refers to a text message that is sent from a software application to the recipient’s phone. Businesses often use A2P SMS messaging to send out important SMS alerts and reminders to their customers.

What Is the Difference Between A2P and P2P Messaging?

The main difference between A2P and P2P messaging has to do with the purpose as well as the send volume. P2P messages normally take place between two individuals for personal reasons. On the other hand, A2P messaging is a tool for commercial and marketing purposes and can go out to thousands of recipients at a time.

What Are the Different Types of A2P Messaging?

There are 3 different types of A2P SMS messaging, essentially based on the kind of phone number companies use. These are short codes, 10-digit long codes (or 10DLC), and toll-free messaging, each of which varies from the other in cost, functionality, and deliverability.

What Is A2P Compliance?

An A2P-compliant business is one that has registered its brand and campaigns for A2P messaging via local 10DLC numbers. The registration normally takes place with a third-party organization that works with carriers and SMS providers.