How click-to-chat ads on Whatsapp are transforming marketing campaigns

Earlier this month, WhatsApp announced a significant change to its enterprise communication model: customer service messaging on the platform is now free. Previously priced at INR 0.25 per message in India, this shift positions WhatsApp as probably the most economical channel for enterprise communication, undercutting SMS and Google’s RCS.

The update is part of a broader strategy to expand WhatsApp’s footprint in India's enterprise messaging market, which is still dominated by SMS. By making utility messages free, starting in April 2025, the Meta-backed messaging platform aims to capture a larger market share while enhancing AI chatbot interactions and fostering richer customer engagement. 

Yet WhatsApp’s ambitions extend beyond reducing communication costs. Its Click-to-Chat ads, which the company launched in 2023, are redefining how businesses connect with consumers, leveraging the app’s massive 2 billion active users globally. This ad format not only streamlines campaign management but also unlocks new possibilities for personalised, measurable, and direct consumer engagement.

Janice D'Souza, who runs an artisanal baked goods startup in Mumbai, has been using the platform extensively to promote her premium products. "It helps me in business promotions during key days like Christmas, New Year's Eve, Diwali, Mother's Day, etc. I have also incorporated this functionality into my brand's Instagram and Facebook ads, which allows users to directly initiate a WhatsApp conversation from the ad itself," she explained.

Some brands like Wellbeing Nutrition and Nat Habit have yet to explore Click-to-Chat ads on WhatsApp, citing key limitations. Nat Habit highlights the format’s restriction to engaging existing contacts, making it less effective for acquiring new users. Despite these challenges, both brands express enthusiasm about their potential.

Some brands are keen to leverage the platform for deeper audience connections, promoting their values and holistic healthcare offerings. Similarly, others see opportunities for cross-selling and upselling with current customers and plan to explore this avenue further with AI-driven bots to enhance engagement and streamline interactions.

Simplifying campaign execution

Click-to-Chat ads enable businesses to create ad campaigns that seamlessly lead users to a WhatsApp conversation. Unlike conventional ads, which often direct users to websites or apps, these ads eliminate friction, facilitating immediate interactions.

Vartika Verma, senior director—marketing at Gupshup.

This simplification significantly enhances user engagement, as noted by Vartika Verma, senior director—marketing at Gupshup. “Traditional ad flows often result in 70-80% user drop-offs due to the steps involved—filling forms, signing up, or downloading apps. Click-to-Chat ads, however, capture leads in two clicks and leverage WhatsApp’s conversational nature to retain users through personalised dialogues,” she noted.

Moreover, the integration with Meta’s advertising ecosystem means businesses can manage WhatsApp campaigns alongside Facebook and Instagram ads, creating a unified multi-channel approach. This synchronisation not only streamlines campaign execution but also ensures consistent messaging across platforms. 

Mihir Mehta, managing partner at 0101.Today, highlights the potential. “With the combined reach of nearly 90% across Facebook, Instagram, Messenger, and WhatsApp, this integration transforms campaign management into a cohesive strategy, enabling marketers to optimise resource allocation and drive impactful results,” he stated. 

Leveraging WhatsApp’s reach for personalised engagement

WhatsApp’s massive reach and engagement metrics—such as its 98% open rate—offer businesses a robust tool for building direct, meaningful connections. Chaitanya Salunke, D2C director at Nat Habit, a digital-first brand that sells natural skin and hair care products, emphasises its potential for personalised communication.

“By integrating generative AI with Click-to-Chat ads, brands can engage users in tailored conversations, answering queries and recommending products based on individual needs,” he stated. 

This ability to personalise interactions aligns perfectly with WhatsApp’s conversational nature. Saurabh Kapoor, co-founder of health and nutrition company, Wellbeing Nutrition, sees it as an opportunity to bring personalised nutrition advice to customers, supported by in-house nutritionists available through WhatsApp chats. 

To keep WhatsApp campaigns user-friendly, it is important for businesses to secure explicit opt-ins, offer easy opt-outs, and prioritise personalisation. By segmenting audiences, limiting message frequency, and sharing only relevant content, they can ensure they add value instead of overwhelming users with spam, fostering trust and meaningful customer engagement.

Ankur Gattani, chief growth officer, WebEngage

However, businesses must tread carefully to avoid spamming users. As Ankur Gattani, chief growth officer at Indian SaaS company WebEngage, warns, “Brands abusing the channel with mass messaging risk consumer disengagement, eroding the trust that makes WhatsApp so effective.” 

Enhanced campaign tracking and optimisation

One of the most significant advantages of Click-to-Chat ads is the real-time tracking and optimisation capabilities they offer. Businesses can monitor metrics such as clicks, engagement, and conversions directly within Meta Ads Manager or third-party platforms like Gupshup. 

Verma elaborated on how Gupshup’s platform enhances these capabilities. “Our tools not only provide insights into impressions, reach, and clicks but also track off-thread events like registrations or payments. This helps businesses measure ROI and refine campaigns based on data-driven insights,” she claimed. 

During festive seasons, this real-time tracking can be particularly impactful. For example, e-commerce brands can quickly adapt campaigns to drive higher conversions, while fintech companies can streamline processes like loan applications or policy renewals. 

The true game-changer lies in WhatsApp’s ability to foster authentic conversations. By eliminating intermediaries like landing pages, businesses can directly address customer needs, build trust, and drive sales. This direct engagement also enables brands to collect valuable first-party data, crucial in a world moving away from cookie-based tracking. 

D'Souza cited how this has made communicating with potential and returning customers a breeze. "If they need any customisation, they can simply share this on chat and I can show them the indicative image of the final cake and we can then toss it back and forth, before we nail it; which is a faster turnaround time," she added. 

Verma also noted that Click-to-Chat ads was an easy and cost-effective way to build a first-party database. “Once a user lands on WhatsApp, their interaction history helps brands personalise messaging and proactively re-engage leads, enhancing both data and sales,” she claimed.

This direct approach also supports cross-selling and upselling strategies. For instance, a customer enquiring about a product can be seamlessly guided towards complementary offerings, boosting revenue. 

Navigating limitations and opportunities

Despite its many advantages, Click-to-Chat ads are not without challenges. Currently, targeting is limited to businesses’ existing contact lists, making it less effective for acquiring new users. However, the potential for growth remains vast. 

Salunke points out that leveraging AI-powered bots can address this limitation, automating initial interactions and guiding users to relevant products before involving human support. Similarly, Mihir Mehta believes integrating Click-to-Chat ads with customer data platforms (CDPs) can unlock deeper personalisation and streamline campaign orchestration. 

Mihir Mehta, managing partner, 0101.Today

Transforming the advertising landscape

The integration of Click-to-Chat ads with Meta’s ecosystem marks a turning point in advertising. By combining WhatsApp’s conversational strengths with Meta’s advanced targeting and analytics, businesses can create cohesive, data-driven marketing strategies. 

For brands focused on conversational commerce, the ability to carry context from ad impressions to WhatsApp interactions—where transactions can occur—represents a significant leap. Gattani summarises this shift, “Meta’s tools now allow marketers to view WhatsApp as part of a full-funnel strategy, enabling more effective segmentation and customer journey optimisation.” 

As businesses strive to meet evolving consumer expectations, WhatsApp Click-to-Chat ads offer a blend of personalisation, directness, and measurability. While limitations like targeting remain, innovations in AI and integration with Meta’s ecosystem are unlocking new possibilities. 

In a landscape dominated by traditional advertising, Click-to-Chat ads stand out as a transformative tool. By enabling seamless, meaningful interactions, they not only enhance customer engagement but also position WhatsApp as a central player in the future of business communication.