From June 1, 2023, the WhatsApp Business platform will adjust the rules for charging for sessions, with session types adjusted from the previous two categories to four, and prices changed more substantially, with some countries, the price reductions of up to 80% or more.

In this article, we will comprehensively introduce and explain this new pricing regulation from the following aspects to clear up all the questions about pricing rules.

01 WhatsApp Business New Regulation Adjustments

I. Introduction to adjusted session types

Before the adjustment, it was categorized by session originator:

(1) User-initiated Conersations

The user initiates the first message to the merchant's WhatsApp Business account. The merchant responds to the user within 24 hours, then this type of conversation will be activated and billing will begin.

(2) Business-initiated Conversations

The company sends the first message to the user or continues the session beyond the 24-hour session. This type of conversation can only be sent via a preset message template.

After the adjustment, sessions were divided into four categories:

(1) Service Conversations--User-initiated conversations

And originally company-initiated sessions were categorized into 3 types. Based on the type of template selected when sending the message.

(2) Marketing Session--Session opened by a message template of type Marketing.

(3)Utility Session-- Sessions opened by message templates of type Utility.

(4)Authentication Session-- A session opened by a message template of type Authentication.

II. Adjustments to Session Pricing Rules

Each session type is billed separately in 24-hour increments.

• Session prices will be billed based on the template category. When sending a template message of a different category, the backend will open the corresponding category session and incur the cost of that category.
• For example, when a merchant actively sends a template message for a marketing category and then sends a template message for a verification code. The backend will open the marketing session window and authentication session window respectively, charging the corresponding one-time marketing session fee and validation session fee.
• There are no additional charges for sending multiple templates of the same category. For example, if a merchant sends a template message in the authentication category, which opens the authentication session window, there is no charge for sending multiple authentication template messages within the next 24 hours.
• Service sessions only allow merchants to reply with non-template type messages (i.e., free-form messages).
• For example, if a user sends an unsolicited message to a merchant's WhatsApp business account, the merchant opens a service session if it sends a free-form message in response;
• If the merchant replies with one of the three types of template messages, it will still be treated as one of the sessions initiated by the merchant and will also be charged as the corresponding session type (rather than as a service type conversation)

III. Adjusted session-specific pricing

Each of the 4 types of sessions mentioned above has its own new pricing.

For country-specific prices, please click to find out.

IV. Free sessions generated by advertisements extended to 72 hours

There is no charge for entering a WhatsApp business account for a session from a Facebook ad (such as Click-to-WhatsApp ads).

Beginning March 1, 2023, this free session window extends from 24 to 72 hours and no other type of session window will open during that time.

Things to note: Sessions initiated from ads are free, but posting the ad itself costs money.

V. 1000 free conversations per month no longer include company-initiated conversations

Each WhatsApp Business Account (WABA) will still be entitled to 1,000 free conversations per month, but only for user-initiated conversations (a.k.a. service conversations), and the 3 company-initiated conversation types will not be entitled to any free credits.

VI. Variables in the template must contain examples

When creating a template, all variables must be submitted as examples, otherwise the submission will fail for review.

02 Timeline for activation of new pricing rules

Pacific Daylight Saving Time (PDST)

2023.3.1

Free duration of advertisement conversation extended to 72 hours

There will be no charge for entering a WhatsApp business account for a session from a Facebook ad.

Beginning on March 1, this free window is extended from 24 hours to 72 hours, and no other type of conversation window will open during that time.

2023.4.1

WhatsApp completes migration of new types of templates

WhatsApp re-categorizes all the old original templates and completes the first template migration.

Notice: Templates containing variables must submit variable examples.

2023.5.1

Merchants need to submit by new template type

When submitting a template, it must be submitted according to the new template type.

Notice: YCloud is compatible with the new template interface.

2023.5.5

Migration of new templates

Migrate newly initiated templates from April 1 to May 1

Notice: If a company has a problem with the reclassification of an old template, they can go to the BM Back Office Templates page to file an appeal, which is due no later than May 15th.

2023.6.1

New template types and pricing put into application

Official use of new template types and pricing.

Notice: The 1,000 free conversations per month no longer include company-initiated conversations.

03 What do we need to know from WhatsApp price changes?

I. WhatsApp Business Price Changes Explained

In the new pricing scheme, the original company-initiated conversations have been split into 3 types. Let's take a look at the changes in pricing for these 3 types compared to the previous ones (numbers are percentage increases or decreases)

(Click for details)

We can tell:

Marketing Conversations:

• The cost of conducting WhatsApp marketing conversations has risen in most countries/regions; even so, WhatsApp still retains a significant advantage over SMS in terms of marketing costs in certain regions, with Colombia, India, Indonesia, Russia, Turkey, and Israel being some of the countries to focus on;
• Prices in Africa, the Middle East, and Western Europe were reduced significantly, by up to more than 80%.

Utility Conversations:

• Prices for Utility conversations initiated in all countries/regions, except North America, decreased significantly;
• Certain countries/regions have lowered prices well below international SMS, including:Egypt, France, Germany, Malaysia, Nigeria, Pakistan, Spain, Africa, Asia Pacific, Middle East, Western Europe.

Authentication Conversations:

• Less expensive than Utility Conversations;
• For the regions of India and Indonesia, where WhatsApp's coverage is very high, there is still no final announcement, so perhaps you can expect a lower price.

II. Recommendations for WhatsApp Business' new pricing rules

The new regulations have made significant changes at the price, policy and other levels, and companies need to make timely adjustments to their business planning to embrace the changes and make smart use of the rules to maximize market gains.

1. Use WhatsApp to send OTP and utility messages

Looking at the announced prices, WhatsApp strongly recommends the push of authentication and utility messages to help companies reduce their basic communication costs.

In WhatsApp high coverage areas, such as Indonesia, India, Pakistan, Nigeria, and other countries/regions, we suggest you default to WhatsApp to send the authentication and utility messages, and through WhatsApp failure status instant replenishment SMS. While protecting the user experience, it greatly reduces the basic communication cost.

2. Ensure uniqueness of template types

Starting May 1, WhatsApp is adding template type auditing to the process of reviewing message templates. When creating a template, any template with marketing content mixed in will be categorized as a marketing template, regardless of which category is selected for submission. If the purpose of sending a message is to notify the user of some explicit matter, e.g. order notification, or logistics notification, make sure that you create message templates without a marketing bias in order to utilize a lower utility conversations price.

3. Guide users to initiate interactions

Design message templates that entice users to interact, and once a user actively replies to a message to your account, they will be free to interact with them using free-format messages for the duration of the session.

Make the most of this time by replacing the template message you were planning to use with a free-form message.