SMS Marketing in Australia: A Small Business Guide to Getting Started

• Get consent before sending marketing text messages. Gathering clear sign-ups ensures the business stays compliant with local spam laws and avoids costly penalties.
• Put the business name and an opt-out word like “stop” in every message. Clear identification builds customer trust and giving people a simple way to unsubscribe instantly keeps you on the right side of the law.
• Keep texts under 160 characters and focused on one specific goal. Short messages with a direct link cut through phone clutter and prompt fast actions like booking an open appointment slot.
• Be mindful of send times. Consider regional time zone differences to prevent early morning or late night phone alerts that might disrupt subscribers and cause them to unsubscribe.

You spend an hour crafting a social media post. It gets three likes and one comment (…from your mum). Meanwhile, a 30-word text message lands in your customer’s pocket and gets read before they finish their morning coffee.

That’s the difference SMS marketing makes. For small businesses across Australia, whether you operate a hair salon or a café or a plumbing service, text messages cut through the noise. There’s no finicky algorithm to decide who sees your message, and no spam folder that can randomly decide to swallow it.

According to Constant Contact’s Q1 2026 Small Business Now report, a survey of over 1,500 small business owners across the US, UK, Canada, and ANZ, 44% of small business owners say customer engagement is their top anticipated barrier to marketing in 2026. SMS tackles that problem head on, with open rates that dwarf every other channel.

In this guide, you’ll learn exactly how to launch compliant, effective SMS marketing campaigns for your Australian business, from understanding the Spam Act to building your list, crafting campaigns, and sending your first mass text.

What is SMS marketing?

SMS marketing uses text messages to send promotions, updates, and reminders to customers who have opted in to hear from you. Properly done SMS marketing isn’t spam — it requires consent and gives recipients a clear way to opt out at any time.

Why does SMS marketing matter for Australian businesses? Australia had nearly 35 million active mobile connections as of early 2025, which is more than one for every single person in the country. Unlike an email that can sit unopened for hours or a social post that reaches only a fraction of your followers, a text message gets seen, and often instantly.

SMS campaigns generally fall into three categories: promotional messages (such as flash sales and seasonal offers), transactional messages (such as appointment reminders and order updates), and conversational messages (such as feedback requests and two-way support). Most small businesses start with one or two types and expand their efforts as they see results.

Why SMS marketing works for small businesses in Australia

Here’s a number worth paying attention to: SMS messages see open rates around 98%, compared to roughly 20% for email. When you send a text, it gets read. It’s that simple.

But open rates are only part of the story. Here’s why SMS deserves a spot in your marketing mix:

• It’s faster than any other channel. Messages land in seconds so SMS is perfect for flash sales, last-minute bookings, or event reminders where timing is key.
• It’s affordable for small businesses. Constant Contact’s SMS add-ons start from $40/month depending on how many texts you plan to send monthly.
• It’s a perfect pair with email marketing. If you are already sending email campaigns, adding SMS means you can use the same contacts and segments without learning a new platform.
• The results are measurable. Unlike say, a billboard, with SMS you can track delivery rates, click-through rates, and opt-outs in real time to know exactly what’s working.

Since the messages are short and text-only, SMS campaigns only take minutes to create and send. For busy small business owners, a channel that delivers high engagement without eating up your entire afternoon (or your entire budget) is worth a serious look.

How to stay compliant with Australian SMS marketing laws

What happens if you send a marketing text to someone who never asked to hear from you? In Australia, the answer is serious penalties. The SMS marketing laws in Australia are clear, and they are enforced.

The Spam Act 2003: three rules you must follow

The Spam Act 2003 governs every commercial electronic message sent in Australia, including SMS. It boils down to three non-negotiable requirements:

• Consent is mandatory. You must have the recipient’s permission before you send a marketing text. Express consent means they actively opted in (such as ticking a box on your website or texting a keyword to join your list). Inferred consent covers existing business relationships, such as a recent customer or someone who gave you their number at an event. Either way, document it. If you can’t prove consent, you don’t have it.
• Identify yourself clearly. Every message must include accurate sender identification. Use your business name as the sender ID or include it in the message body. Your customers should never wonder who is texting them.
• Make opting out easy. Every commercial text message needs a functional unsubscribe mechanism. “Reply STOP to unsubscribe” is the standard. Process opt-outs within five business days, and never charge for them. (SMS marketing platforms like Constant Contact handle all this for you so you don’t have to worry about staying compliant.)

Other regulations to know

The Spam Act is your primary concern when it comes to using SMS for marketing, but it’s not the only piece of legislation to keep in mind:

• Privacy Act 1988 and the Australian Privacy Principles (APPs). This governs how you collect, store, and use personal information, including mobile numbers. The Act currently applies to organisations with annual turnover above AU$3 million plus certain other entities (such as health providers and credit providers). However, reform is expected to extend coverage to all businesses. The safest approach is to comply regardless of your size. The OAIC (Office of the Australian Information Commissioner) is the regulator.
• ACMA enforcement. The Australian Communications and Media Authority does not issue warnings for serious breaches. ACMA has levied fines exceeding AU$4 million against organisations for large-scale Spam Act violations. Treat compliance as a business requirement, not an optional extra.
• Sender ID rules. Australia’s SMS Sender ID Register, piloted since December 2023, becomes mandatory from July 2026. Use a registered sender ID or a local mobile number so your messages are not filtered or blocked.

7 types of SMS campaigns to try for your business

Not every text message has to be a sales pitch. The most effective SMS strategies use a mix of campaign types to stay useful, relevant, and welcome. Here are seven worth trying. For a deeper dive into structuring each one, see our ultimate guide to SMS campaigns.

1. Flash sale and promotional texts

Time-sensitive offers create urgency and can drive foot traffic for brick-and-mortar businesses. Think a boutique announcing a weekend clearance sale or a restaurant sharing a midweek two-for-one deal to fill empty tables on a slow Tuesday.

Use promotional texts to:

• Announce a special 24-hour discount to new subscribers
• Promote seasonal offers
• Drive traffic to your shopfront or online store during quiet periods

2. Appointment and booking reminders

Automated reminders reduce no-shows and keep your calendar full. For service-based businesses (such as salons, physios, and personal trainers), every missed appointment is lost revenue.

Use appointment reminders to:

• Send a reminder 24 hours before a scheduled appointment
• Include a link to reschedule or cancel easily
• Reduce no-show rates and protect your revenue

3. Welcome messages for new subscribers

The first text you send sets the tone. An automated welcome message confirms their subscription, delivers immediate value, and tells them what to expect.

Use welcome messages to:

• Confirm their subscription and thank them for joining
• Share a first-time offer or discount code
• Set expectations for how often you will message them

4. Abandoned cart reminders

Online shoppers abandon carts constantly for all kinds of reasons. A well-timed text with a direct link back to their cart can recover sales that would otherwise disappear. (For more, check out our guide to abandoned cart recovery strategies.)

Use abandoned cart reminders to:

• Recover lost sales within hours of cart abandonment
• Include the product name and a direct checkout link
• Offer a small incentive to encourage shoppers to seal the deal

5. Event invitations and updates

Hosting a workshop, a fitness class, or a wine tasting? SMS is the fastest way to rally your community. A gym announcing a free outdoor boot camp class can use text messaging to potentially fill spots in hours, not days.

Use event texts to:

• Announce new events to your subscriber list
• Send day-of reminders with venue details and timing
• Follow up with attendees after the event for feedback

6. Feedback and review requests

Ask for reviews when the experience is fresh. A text sent 24 hours after a customer leaves your café is far more likely to get a response than an email sent two weeks later.

Use feedback requests to:

• Send a post-visit text with a link to leave a Google review
• Collect quick satisfaction ratings via a short survey link
• Identify unhappy customers early so you can follow up privately

7. VIP and loyalty updates

Exclusive offers, early access, and insider updates make regulars feel valued and keep them coming back. For more ideas, check out these SMS marketing examples.

Use VIP updates to:

• Give loyal customers first access to new products or seasonal menus
• Offer exclusive discounts not available to the general public
• Build a sense of community that turns one-time buyers into long-term fans

How to get started with SMS marketing in Australia

Ready to send your first campaign? Here’s a step-by-step process to get you up and running.

Step 1. Choose a compliant SMS platform

Look for a platform that handles the compliance basics for you: consent tracking, automated opt-out processing, and registered sender IDs. If you’re also doing email marketing, choose a platform like Constant Contact that integrates SMS into the same dashboard so you’re not juggling separate tools and contact lists.

Step 2. Build your subscriber list

Use the Text to Join feature (where customers text a keyword to opt in), website sign-up forms, in-store signage, and/or a message printed on receipts to grow your list. Always collect express consent and keep records of when and how each subscriber opted in.

Never buy lists. Purchased lists violate the Spam Act, damage your sender reputation, and most importantly, tend to deliver terrible results since no one asked for your texts! Build your list the right way, even if it starts small.

Step 3. Set up your sender ID

Register a local phone number or alphanumeric sender ID with your SMS marketing platform. Dynamic sender IDs are restricted in Australia, so use a consistent, recognisable name your customers will trust.

Step 4. Write your first campaign

Keep messages under 160 characters when possible. Get to the point quickly, whether it’s a discount, an update, or a reminder. Include a clear call to action and an opt-out instruction in every message.

A message from a pet groomer might read: “Hi Sarah! 20% off all grooming this Saturday. Book now: [link]. Reply STOP to opt out.” Short, clear, and actionable.

Step 5. Send, measure, and optimise

Start with a small test send to check delivery and formatting. Then track what matters: delivery rates, click-through rates, and opt-out rates. Test different send times, message lengths, and offer types. SMS gives you concrete numbers, so use them to see what’s working and then do more of it.

SMS marketing best practices for Australian businesses

Taking your campaigns from good to great comes down to a handful of practical habits.

• Always get consent first. Never text someone who has not opted in. Express consent is strongest. Document everything and keep records of when and how each subscriber joined.
• Keep it short. 160 characters is the sweet spot. Every word should earn its place. If your message needs more detail, link to a landing page.
• Time your messages wisely. Respect Australian business hours and time zones. A message sent at 8am AEST lands at a mighty early 6am in Perth (AWST). Avoid early mornings, late nights, and public holidays.
• Personalise when you can. Use first names and segment by purchase history, location, or preferences. A personalised message from your yoga studio about their favourite class type beats a generic blast.
• Combine SMS with email. Use email for detailed content and newsletters. Use SMS for time-sensitive alerts and reminders. A multichannel approach using SMS and email together consistently outperforms either channel alone.
• Don’t over-send. Two to four messages per month is a safe starting frequency for most local businesses. More than that risks annoying your list, which will lead to opt-outs.
• Include a clear CTA every time. Tell your readers exactly what to do next: book now, shop the sale, reply YES to confirm, or claim their discount. Review these SMS text message best practices for more tips on writing messages that convert.
• Use automation to save time. Set up triggered messages for welcome series, appointment reminders, and abandoned carts. According to a Constant Contact study of 37,000 customers, 40% of the most successful ones use automations. Let your marketing automation platform do the repetitive work while you focus on running your business.

Frequently asked questions about SMS marketing in Australia

Is SMS marketing legal in Australia?

Yes, SMS marketing is legal and regulated under Australia’s Spam Act 2003. You need consent from the recipient, clear sender identification, and a functional unsubscribe in every commercial message. ACMA enforces these requirements.

How much does SMS marketing cost in Australia?

Costs vary by platform and message volume. With Constant Contact, SMS is available as an add-on starting from $40/month AUD on Lite and Standard plans. Premium plan customers get up to 500 messages included free each month.

Do I need consent to send marketing texts in Australia?

Yes. The Spam Act 2003 requires either express consent (the person actively opted in) or inferred consent (an existing business relationship). Purchasing lists and cold texting are not permitted.

Can I use SMS alongside my email marketing?

Absolutely. Combining SMS and email in a single platform lets you share contacts, reuse audience segments, and coordinate automated campaigns across both channels without duplicating effort.

What is a good open rate for SMS?

SMS open rates typically sit around 98%, significantly higher than average email open rates of roughly 20%. That gap is why SMS is such a strong complement to your email strategy. See the latest SMS marketing statistics for more benchmarks to measure your SMS performance against.

Start using SMS to keep your customers engaged

SMS marketing gives Australian small businesses a direct, high-engagement channel to reach customers who actually want to hear from you. Paired with email, you can cover everything from detailed newsletters to time-sensitive alerts, all from one platform.

Start your free trial of Constant Contact today and see how simple and effective SMS marketing can be. Already a subscriber on the Premium plan? Great news, you can send up to 500 text messages per month for free.