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?
Meta introduced Frequency Capping to address this issue! With this feature, Meta's advanced algorithms assess whether a user is likely to find the message relevant or open it. Based on this analysis, Meta decides whether to deliver the message to the user or not, avoiding failed message deliveries. The best part? No cost is incurred on failed messages with Frequency Capping.
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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