Definition
A template category is the label (marketing, utility or authentication) that Meta assigns to every WhatsApp message template. It determines what content is allowed and how much each delivered message costs.
Meta defines three categories. Marketing covers everything from awareness to sales and is the most flexible. Utility follows up on a specific user action or request, or is essential to the user, and must not be promotional. Authentication delivers one-time passcodes and is the most restrictive.
The business chooses a category when it creates the template, but Meta reviews it. A template that mixes utility and marketing content, or has unclear content such as a lone placeholder, is classed as marketing. If Meta disagrees with a utility label at creation it can approve the template as marketing, or reject it with INCORRECT_CATEGORY.
Meta also re-checks approved templates. A utility template that should be marketing is switched to marketing after one day's notice, or immediately for businesses that have had a misuse warning. Businesses have 60 days to appeal through Business Support Home, and repeated miscategorisation can lead to utility rate limits or suspension.
Because Meta prices each delivered message by category and market, getting the category right is a cost decision. Do not label an offer as utility to save money: Meta's recategorisation will catch it and may restrict the account.