# Why Businesses Use CTWA Retargeting

Every WhatsApp conversation your business has represents a potential opportunity. Even if a customer does not immediately make a purchase, their interaction still indicates interest.

Many businesses try to reconnect with these leads by sending **WhatsApp marketing template broadcasts**. While this can work in some cases, it often becomes **expensive and inefficient as the lead database grows**.

CTWA Retargeting offers a smarter alternative. Instead of sending paid messages to every contact, you show **targeted ads only to users who have already interacted with your business on WhatsApp**, bringing them back to the same conversation.

To understand the difference, let us compare both approaches.

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#### <mark style="color:$primary;">**Broadcast Messaging vs CTWA Retargeting**</mark>

| Factor                  | WhatsApp Marketing Broadcast      | CTWA Retargeting                               |
| ----------------------- | --------------------------------- | ---------------------------------------------- |
| Communication Method    | Direct marketing template message | Facebook/Instagram ads                         |
| Cost Structure          | Pay per message sent              | Pay for ad reach/engagement                    |
| Typical Cost            | ₹0.99 per marketing template      | Flexible ad budget                             |
| Cost for 1,000 Leads    | ₹990                              | ₹300 – ₹600                                    |
| Cost for 10,000 Leads   | ₹9,900                            | ₹2,000 – ₹4,000                                |
| Response Rate           | 1% – 5%                           | 5% – 15%                                       |
| Conversation Continuity | User must reopen chat manually    | Clicking the ad reopens the same WhatsApp chat |

This shows that **broadcast messaging reaches everyone**, while **CTWA Retargeting focuses on users more likely to respond.**

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#### <mark style="color:$primary;">**Scenario 1: Sending WhatsApp Marketing Template Broadcasts**</mark>

Marketing templates are **paid messages**, so you are charged for every message sent.

For example:

1,000 leads × ₹0.99\
\= **₹990**

10,000 leads × ₹0.99\
\= **₹9,900**

However, most broadcast campaigns see **only 1%–5% response rates**.

So if you message **10,000 leads**, only around **100–500 users may respond**.

***

#### <mark style="color:$primary;">**Additional Challenges with Broadcast Campaigns**</mark>

#### Frequency Capping

WhatsApp applies **frequency limits on marketing messages**.

If you send a broadcast to **10,000 contacts**, typically only **60–70% of messages are delivered initially**.

That means:

* **6,000–7,000 messages delivered**
* **3,000–4,000 messages delivery failed**

Businesses often have to **retry broadcasts multiple times** to reach the remaining users.

***

#### Risk of Number Restrictions

Sending marketing messages to large lists can also increase the risk of **WhatsApp number restrictions**.

If recipients:

* Mark messages as **spam**
* **Block** the number
* **Report** the business

WhatsApp may **reduce messaging limits or temporarily restrict the number**.

This risk increases when messaging:

* Older databases
* Contacts who never interacted recently
* Third-party or unknown data sources

***

#### Large Databases Become Expensive

Many businesses store **large contact databases** over time.

Example:

100,000 contacts × ₹0.99\
\= **₹99,000 per broadcast campaign**

In addition to the cost, businesses may also face:

* frequency limits
* spam complaints
* low engagement

***

#### <mark style="color:$primary;">**Scenario 2: Using CTWA Retargeting**</mark>

CTWA Retargeting works differently.

Instead of sending messages directly, you run **Facebook and Instagram ads shown only to users who previously interacted with your business on WhatsApp**.

When users click the ad, **the same WhatsApp conversation opens again**.

For example:

A campaign with a budget of **₹2,000 – ₹4,000** can reach **10,000 previously engaged users**.

Because these users already know your business, **engagement rates are usually higher than broadcast campaigns**.

***

#### <mark style="color:$primary;">**Why CTWA Retargeting Works Better**</mark>

**Familiarity**\
Users recognize your brand from the earlier conversation.

**Relevance**\
Ads target people who already showed interest.

**Better Timing**\
Users see the reminder while browsing Facebook or Instagram.

**Conversation Continuity**\
The WhatsApp chat reopens instantly when they click the ad.

***

#### <mark style="color:$primary;">**Key Takeaway**</mark>

Sending broadcast messages means **paying for every message**, even if most users do not respond.

Businesses may also face:

* frequency capping
* delivery limitations
* spam reports
* risk of number restrictions
* high costs for large databases

CTWA Retargeting helps businesses **re-engage interested users through targeted ads**, bringing them back into the conversation in a more natural and cost-efficient way.

***

#### <mark style="color:$primary;">**What You Will Learn Next**</mark>

In the next article, you will learn **how to create a Custom Audience in Meta Ads Manager using your CTWA lead list**, which is the first step in running a CTWA Retargeting campaign.