How Frequency Capping Works
Discover how Frequency Capping in WhatsApp API is reshaping WhatsApp marketing. Learn its impact, benefits, and how to optimize your strategy with DoubleTick.
Marketers' WhatsApp Business API Usage
Since its inception, Markets has opted for WhatsApp Marketing using the Official API to efficiently engage, nurture, and expedite deal closures with leads and prospects. However, the rapid adoption of this technology by a diverse array of businesses globally led to some challenges. Despite increased spending, businesses faced issues ensuring that their communication via Marketing templates reached their audience through Broadcast campaigns.
Decreasing Engagement Metrics:
Click Through Rate (CTR) decline over time
Decreasing percentages of read and replied messages
Cumulative impact on Return On Advertising Spend (ROAS)
Illustrative Scenario
How? Let's understand with an example with some hypothetical numbers.
Let's say before 1st April 2024 you had a budget of INR 1,00,000 for a campaign, you as a marketer would find your top 1,50,000 contacts to run the campaign, identifying those customers who will give you the maximum return. Let's say one such customer is Mr Singh.
Now picture Mr. Singh having a hectic day without checking WhatsApp. He's only glancing at vital messages from his phone or smartwatch, prioritizing those from his boss, spouse, and other important contacts. If marketers flood him with multiple template messages via API in this scenario, he's unlikely to open them. This experience frustrates Mr. Singh, potentially leading him to block certain API numbers, including his favorite brands, to avoid further annoyance.
Broader Impact
In your target group of 150,000 contacts, many might resemble Mr. Singh, facing diverse situations. Some could be having a tough day or traveling, while others intentionally disconnect from digital platforms. Temporary WhatsApp access issues may also arise. Moreover, recipients might feel overwhelmed by messages from recognized and unfamiliar brands, leading to frustration and disengagement
Impact on Campaign Metrics
Upon running the campaign, as a marketer, you'll likely notice a significant portion of your delivered messages remain unread and unreplied. Naturally, you may opt for retargeting, but the outcomes might not be as promising as expected.
Let's crunch some numbers! The below sheet illustrates what your typical ROAS would look like.
Messages Sent
1,50,000
Messages Delivered
1,20,000
Messages Read
Messages Not Read
Messages Replied
Messages Not Replied
Messages Failed
30,000
Campaign Cost [ Wallet Deductions due to conversation cost]
INR 1,00,000
Gross Revenue Generated
INR 20,00,000
ROAS [Return on Advertising Spend]
20
Wow! You've invested just Re 1 of ad money to generate a revenue of Rs 20!
However, this value varies across industries and target audiences. Despite the impressive revenue, you might find yourself unsatisfied with your campaign performance on WhatsApp. Moreover, the end user's experience on WhatsApp might not be optimal either.
So what's the solution?
So after frequency capping, the new table looks like this 👇
Campaign Stats
Before Frequency Capping
After Frequency Capping
Messages Sent
1,50,000
1,50,000
Messages Delivered
1,20,000
40,000
Messages Read
20,000
20,000
Messages Not Read
1,00,000
20,000
Messages Read Not Replied
12,000
12,000
Messages Replied
8,000
8,000
Mesasges Failed
30,000
110,000
Campaign Cost [ Wallet Deductions due to conversation cost]
INR 1,00,000
INR 33,333
Gross Revenue Generated
INR 20,00,000
INR 20,00,000
ROAS [Return on Advertising Spend]
20
60
So as a marketer, you ended up using 1/3rd of the marketing cost to generate the same return! All thanks to Meta's frequency capping.
Now you can use the remaining 2/3 of the campaign money to retarget or run more WhatsApp campaigns and much more.
How to ensure your ideal audience is not affected by Frequency Capping ?
Frequency capping should not be viewed as a problem of failed messages; instead, it's a feature that facilitates the segregation of customer data.
We advise continuing to use utility messages consistently to add value to your customers' lives, thereby increasing the open rate for your Marketing Messages.
If you still want to bypass the frequency capping policy, consider scheduling broadcasts or sending messages at 5 AM local time when the frequency capping resets.
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