In a strategic move to tackle growing competition from Google's Rich Communication Services (RCS) and Apple's entry into business messaging, Meta’s WhatsApp has reduced its business messaging prices by 16-97% in several countries, including a significant 63% cut in India.

Announcing Changes to WhatsApp Business API Pricing: Focusing on Quality and Conversations

WhatsApp Conversation Categories Impacted by Price Changes

Conversations on WhatsApp are 24-hour message threads between businesses and customers. These sessions begin and are billed when a message is delivered. The messages fall into three categories:

Marketing: Used for goals such as generating awareness, driving sales, and retargeting customers. Examples include announcements of new products or services, targeted promotions, and upsell/cross-sell campaigns.

Utility: Used for following up on user actions or requests. Examples include opt-in confirmations, order/delivery updates, account updates or alerts, and feedback surveys.

Authentication: Used for verifying users with one-time passcodes, such as account verification, recovery, and integrity challenges.

Highlights of the WhatsApp Business Price Adjustment

Meta’s new pricing strategy results in lower costs for Utility and Authentication messages, while increasing the costs for Marketing messages. This shift aims to encourage businesses to focus on more thoughtful and targeted communication that delivers higher return on investment (ROI). By increasing the cost of untargeted, bulk marketing messages, Meta seeks to enhance the overall user experience and reduce spam.

This approach also aligns with Meta’s initiatives like template pacing and frequency capping, promoting the creation of more interactive and engaging content. The slight price increase for marketing messages in India is designed to improve message quality without overly burdening businesses, especially in a cost-sensitive market. By making untargeted messaging more expensive, Meta aims to reduce spam and enhance user experience on the platform.

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