What is Revenue Per Message?

Revenue Per Message (RPM) is a performance metric for SMS marketing that calculates how much revenue, on average, each text message generates. The formula is simple: total revenue attributed to SMS ÷ total messages sent. If you send 10,000 texts and generate $20,000 in revenue, your RPM is $2.00.

RPM is one of the most useful metrics for evaluating SMS program performance because it accounts for both conversion rate and average order value in a single number. A high RPM means your texts are driving meaningful revenue relative to their cost.

The metric is especially valuable for comparing different SMS approaches. Traditional link-based SMS campaigns average roughly $0.16 RPM. Text-to-buy campaigns on AudienceTap average $2.01 RPM — a 12x difference that fundamentally changes the economics of SMS.

RPM is calculated by dividing total revenue attributed to a campaign (or time period) by the total number of messages sent. For text-to-buy, attribution is direct — every order was generated by a specific text. For link-based SMS, attribution depends on click tracking and attribution windows.

RPM can be calculated per campaign (how much did this specific text generate?), per time period (what's our monthly RPM?), or per message type (drops vs reorders vs cart recovery). Breaking RPM down by type reveals which message types drive the most revenue.

Important nuance: RPM should be calculated on delivered messages, not sent messages. Messages that fail to deliver shouldn't count against your RPM since they never had a chance to drive revenue.

RPM directly answers the question: "Is my SMS program profitable?" When each text costs $0.01–0.05 to send and generates $2.01 in revenue, the ROI is obvious. When RPM is $0.16, the math is much tighter.

RPM is also the most honest comparison metric across SMS platforms. Open rates and click rates can be misleading — what matters is how much revenue each message drives. A platform with lower open rates but higher RPM is the better business decision.

For budgeting and forecasting, RPM makes planning straightforward. If your RPM is $2.00 and you send 5,000 texts per week, you can expect roughly $10,000 in weekly SMS revenue. This predictability is valuable for DTC brands planning growth.