WhatsApp vs SMS 💌 What's best for business communication in 2025?

The rise of SMS

The rise of SMS happened before SMS marketing started. Which makes sense, right? SMS had to reach mass adoption among users before companies embraced it as a marketing tool. Then came SMS marketing, where still today it's being practiced by companies. But how come?

SMS (Short Message Service) was introduced in the early 1990s and it was limited to 160 character text messages that were sent over mobile networks. SMS quickly gained popularity because it was fast, direct and didn't require internet access. By the early 2000s, texting was the normal way to communicate, especially among younger generations. Sharing culture and updates. A way to stay connected with friends and family.

Here’s an example of what a 160-character SMS might look like in everyday communication:

Hi Anna, just reminding you about our meeting tomorrow at 10am at the café near your office. Let me know if you want me to bring the reports with me. See you!

That's exactly 160 characters. Short but enough to send a clear message.

Curiosities 💡

Early SMS culture led to lots of abbreviation (like u = you, gr8 = great, c u l8r = see you later) because people wanted to squeeze more meaning into that strict limit.

SMS Marketing

At first, SMS was purely personal. But companies realized the potential of what SMS marketing could mean. Everybody was texting. It was impossible to ignore it. Unlike email, which often sat unopened, SMS reportedly had an open rate of over 80%. The immediacy is powerful.

Attention: When you see numbers like 70-80% open/read rate for SMS, they’re industry estimates based on surveys, carrier delivery stats, and behavioral studies.

Nobody can literally “track” whether an SMS has been opened (the way you can with email or WhatsApp open rates).

SMS doesn’t have a built-in tracking pixel or “read receipt” in its standard protocol.

From personal use to business adoption

Companies started to go big on SMS campaigns and investing resources into SMS marketing because it was clearly working. Banks began to provide balance notifications, airlines delivered flight updates and retailers sent discount alerts to SMS users. It was cheaper than direct mail or call centers and it also fit in your pocket.

SMS customer service

Beyond promotions, SMS was used as a client communication channel. Appointment reminders from doctors, financial institutions sent SMS two-factor authentication to their clients and e-commerce brands adopted SMS marketing as a standard. Making SMS marketing a reliable communication channel between companies and consumers.

The fall of SMS

If we compare the popularity SMS had in the past to what SMS marketing is today, it’s clear that its influence has significantly declined as newer, more engaging digital channels have taken over.

Limitations that opened doors for Apps

SMS marketing did revolutionize the way businesses communicate with their customers.

• Character Limit: Traditional SMS only supported 160 character, forcing users to write short messages.
• Cost per Message: Carriers charged fees for every text sent or received, making heavy use expensive for both users and businesses.
• Lack of Multimedia Support: SMS was text only. No images, videos, voice notes or clickable links in the early days.
• Security Gaps: SMS was not encrypted. Which makes it easier for sensitive communication to be compromised.
• Border Constraints: The experience varied by carrier and country, with some networks limiting delivery or charging extra for cross-border SMS.

The rise of WhatsApp Business

WhatsApp Business is considered a OTT messaging platform. What is OTT? It means Over-The-Top messaging which refers to internet based communication such as Facebook and WhatsApp Business. "Over the top" of mobile networks using the internet, rather than relying on SMS infrastructure. More examples of OTT messaging include Telegram, iMessage and WeChat.

Key advantages of OTT apps:

• Free or Low-Cost: Messages are sent over Wi-Fi or mobile data, avoiding per-message SMS charges.
• Rich Communication: Photos, videos, files, voice notes, stickers, and group chats became standard.
• Encryption & Security: Many OTT apps, like WhatsApp, offer end-to-end encryption, giving users more trust.
• Global Reach: No international SMS fees — a user in Brazil can message someone in Japan instantly, with no extra cost.
• Business Integrations: APIs and business solutions allow companies to offer customer support, notifications, and marketing inside these apps.

Since its acquisition by Meta in 2014, WhatsApp has evolved from a simple chat app into a powerful business communication platform. With the launch of the WhatsApp Business App in 2018, small businesses gained tools like business profiles, labels, quick replies, and product catalogues to improve customer engagement. A year later, the introduction of the WhatsApp Business Platform (API) opened the door for medium and large enterprises, enabling CRM integration, automation, and personalized messaging at scale.

Today, WhatsApp has transformed into a full WhatsApp marketing strategy channel, offering features such as broadcast messaging, click-to-WhatsApp ads, and automated lead capture and follow-up, making it an essential tool for businesses to connect with their customers more effectively.

WhatsApp Engagement

WhatsApp's engagement level is attractive to businesses. Since it contains features much more attractive than SMS marketing. Not to say, SMS marketing is the wrong strategy to take, but WhatsApp marketing presents better features for e-commerce companies to track activity across the channel and gives more visibility to brands than SMS marketing.

What are these WhatsApp Business Platform API features❓

1. Interactive buttons: Quick Reply buttons (up to 3 options) and Call-To-Action buttons (open a link or call phone number)

Makes it easier for clients to interact with your WhatsApp campaigns without typing. Leading to a boost in conversion rates.

2. Message templates: Pre-approved templates for outbound messages (promotions, reminders, alerts). Ensures compliance with WhatsApp's anti-spam rules. Making a safe channel for clients to communicate with.

3. List messages: Businesses can send up to 10 selectable options in a menu-style message.

Source: Official WhatsApp Website

4. Product catalogs: Show product catalogs integrated with Facebook Shops. An ideal way to present your products to your clients. With interactive buttons to lead the client to the purchase. By never leaving a hot lead unattended. Shopping inside WhatsApp became an impactful feature to e-commerce, restaurants and services.

5. Verified Business Profile on WhatsApp Business: Business name, logo, contact info, website and sometimes a green verification badge to enhance trust and credibility in the market and in front of your clients.

6. Payment integration: Customers can pay directly inside WhatsApp Business. Efficient when it comes to shortening purchase journeys. Less abandoned carts and fewer drop-offs.

WhatsApp usage

Billions of people use WhatsApp everyday. The activity level on WhatsApp compared to SMS changed over the years. Meta owns Facebook, Instagram and WhatsApp. Connecting these 3 powerful platforms together, give businesses what they need. A chance to speak to an enormous audience they can reach. Read our blog on how to connect WhatsApp to Facebook and WhatsApp to Instagram. This way, you'll be more equipped for higher audience reach by enabling click-to-WhatsApp ads on Facebook Business and Instagram Business.

WhatsApp vs SMS Marketing

From a marketing perspective, WhatsApp marketing fulfils all the needs a business has to communicate with customers. Promoting products on WhatsApp Business Platform API is convenient to businesses, because of its simplicity and bulk messaging adoption without excluding personalization and segmentation.

WhatsApp marketing strategy is becoming important to the existence of any business that uses WhatsApp Business, as companies are actively looking for WhatsApp marketing tools.

If you're interested to know how to start you WhatsApp marketing journey, read our blog where it explains step-by-step on how to guarantee maximum usage of all features WhatsApp Business Platform API has to offer.

As a business you're able to automate your WhatsApp conversations, giving you more time to handle more complex tasks in your organisation. WhatsApp Business Platform API provides businesses with features that add to your internal organisation by assigning tasks/conversations to specific individuals within your team. To make sure every client's request is attended and helped by the right person in your organisation. All of this can be automated to simplify and improve business workflows.

But how does WhatsApp compare to SMS❓

*the 160-character limit is still the technical standard for a single SMS (based on the GSM protocol). However:

• Modern phones and carriers support concatenated SMS, which means if you type a longer message, it’s just split into multiple 160-character “segments” behind the scenes and then reassembled on the recipient’s phone.
• To you (and your customers), it looks like one continuous message.
• From a marketing/cost perspective, you’re actually paying per segment. So a 300-character SMS = 2 SMS units billed 👍

So while the hard 160 limit exists at the protocol level, in practice today, you can send much longer messages. You just need to factor in cost and delivery reliability.

That's Why 💡marketers prefer WhatsApp Business, as its pricing model is fair and affordable for businesses. Take a look into how WhatsApp pricing affects your conversations. Take a look on how Meta established WhatsApp conversational prices.

The winner: SMS Marketing or WhatsApp Marketing❓

It depends what your business is. Let's look into these 2 different use cases in order to understand that SMS marketing could be a better fit for some still operating businesses.

Use Case 1: Alpine Ski Resort Safety Alerts 🏔️

Imagine a ski resort in the Alps. Their clients are scattered across mountain slopes where:

• Internet coverage is weak or non-existent.
• Many visitors may not have roaming data plans if they’re international tourists.
• Safety alerts must reach everyone instantly, regardless of device or apps installed.

Why SMS is better here❓

• Works without internet: As long as there’s a basic mobile signal, an SMS can go through, even in low-coverage areas.
• Critical urgency: Avalanche warnings, ski lift breakdowns, or sudden weather alerts must reach people immediately. SMS has universal delivery, while WhatsApp would fail without data.
• Regulatory reliability: SMS is an established, regulated channel for emergency alerts. It’s often prioritized by carriers.

Example: A ski resot sends a mass SMS at 7am

Weather Alert ⚠️ Avalanche risk is HIGH today. Stay on marked slopes only. Lifts A & B closed. Stay safe – Alpine Resort Team.

Use Case 2: Global Retail Brand🌍

Now think of a fashion retail chain with stores worldwide (e.g., Zara, Nike, or a mid-size D2C e-commerce brand). Their customers:

• Own smartphones with WhatsApp (active users exceed 2.7 billion globally in 2025).
• Expect personalized, engaging shopping experiences.

Why is WhatsApp better here❓

• Rich engagement: Send product catalogs, promo videos, discount codes, or “shop now” buttons.
• Interactivity: Customers can chat back, ask about sizing, stock availability, or delivery status.
• Cost efficiency: Bulk WhatsApp messages are cheaper than multi-SMS campaigns. Making WhatsApp campaigns more sustainable and efficient.
• Trust & branding: A verified WhatsApp business profile with logo feels safer and more professional.

Example: A fashion brand sends a WhatsApp campaign

This WhatsApp campaign turns into a mini storefront. With image, caption and buttons. Something SMS marketing could never replicate.

Take a look into our WhatsApp Broadcast & Advanced Segementation, to understand how you can build and target your audience with advanced features on WhatsApp Business Platform API powered by CapaTalk.

Final Takeaway

What did we learn so far❓

The rise of SMS took marketing strategies to another level. Presenting a direct way for businesses to communicate with their clients. Still today SMS marketing has it's use cases where internet cannot reach. Urgent alerts are more suitable to be communicated through SMS channel. Whereas, WhatsApp Marketing is widely used for brand recognition, boost sales and engagement with "Buy Now" buttons. Also easier to track activity and measure marketing performance. Ideal for companies looking to improve. If you can measure, you can improve.

✅ SMS is still king when you need universal, instant and no internet-access communication (like in mountainous areas). However, this applies to very few businesses around the globe.

✅Regarding WhatsApp Business, it's the future of interactive, personalized marketing. Having a WhatsApp marketing strategy seems to be the right marketing strategy to have for businesses worldwide.

Other Blogs you can read:
How to use WhatsApp CRM: Step-by-step guide on how to take use our WhatsApp CRM for enterprise-level organisation.

How to launch your first campaign: a tutorial on how to send your first WhatsApp campaign on CapaTalk's platform for WhatsApp Business Platform API.

The Big 3🫦Most-Loved Customer Support Channels: Your customer's favorite support method described in detail and why do they love it.

WhatsApp vs Email: The ultimate comparison between WhatsApp against Email for business communication backed by official statistics.