Understanding Cost-Per-Conversation vs. Cost-Per-Link-Click in WhatsApp Business Ads

Introduction

When creating ads on WhatsApp Business, you may notice that different metrics are used to measure the success of your campaigns, such as cost-per-conversation and cost-per-link-click. This article explores the factors that influence these metrics and how to choose the most effective option for your business objectives.

Key Factors Influencing Cost Metrics

1. Ad Objective

The metric used—cost-per-conversation versus cost-per-link-click—is closely tied to the objective you select when setting up the ad.

Cost-per-conversation: Applies to ads optimized for generating direct conversations via WhatsApp. These ads encourage users to click the “Message” button leading to a chat with your business. Common for objectives like Lead Generation or Customer Engagement. Cost-per-link-click: Measured for ads that direct users to an external link, such as your website landing page or product page. Typically aligned with objectives like Traffic or Conversions.

2. Optimization Settings

WhatsApp ads are optimized based on what you’re trying to achieve. If you prioritize conversations, the system optimizes delivery to people likely to start chats. If you prioritize clicks, it targets users likely to click on links regardless of whether they engage further. The chosen optimization affects which metric becomes primary and how costs are calculated.

3. User Behavior

Regional or audience-specific behavior can influence these metrics:

In some markets, users might prefer direct messaging (cost-per-conversation) over visiting external links. Younger audiences may be more comfortable initiating conversations directly on WhatsApp, while older demographics may prefer browsing a website first.

4. Market Dynamics

Different regions have varying levels of WhatsApp adoption and use for business purposes:

Emerging markets such as India, Brazil, and South Africa: Users are more likely to engage via WhatsApp for inquiries, making cost-per-conversation metrics dominant. Developed markets: Users may rely on WhatsApp less for business and prefer cost-per-link-click metrics as they browse websites or complete purchases online.

5. Ad Performance and Competition

The cost for specific metrics can vary based on competition and demand for a particular ad type in your market. High competition or demand for conversational ads can increase cost-per-conversation, while cost-per-link-click may remain lower. The quality and relevance of your ad can also affect how efficiently it achieves its target.

Choosing the Right Metric for Your Business

Cost-Per-Conversation

Cost-per-conversation is ideal if your goal is to build relationships, answer inquiries, or close sales through chat.

Cost-Per-Link-Click

Cost-per-link-click is best if you’re driving traffic to a website for conversions like purchases or sign-ups.

To maximize efficiency, track both metrics over time and adjust your ad creative, audience targeting, and budget allocation based on what works best for your business goals.