Meta to Roll Out Ads and Subscriptions on WhatsApp to Boost Revenue

Meta, the parent company of Facebook, has announced its plans to introduce advertisements and subscription models on WhatsApp in the coming months. Ads will be displayed within the Updates tab, specifically in the Status and Channels sections, which collectively attract over 1.5 billion users. 

Despite these changes, WhatsApp has reassured users that private messages, calls, and personal statuses will continue to be end-to-end encrypted and will not be used for advertising purposes. The rollout will begin gradually across global markets, with users being informed of updated policies beforehand, as per Alice Newton-Rex, Vice President and Head of Product at WhatsApp.

Advertising Model and Data Usage

WhatsApp’s new advertising format will resemble Instagram Stories, with ads inserted between Status updates. Businesses and Channels will be able to use these placements to engage users through messages related to the promoted products or services. The targeting of ads will rely on limited user information such as language, country, city, Channels followed, and user interactions. 

Those who link WhatsApp to Meta’s Accounts Centre will also have their cross-platform preferences considered. Promoted Channels will appear in the app’s directory with a 'sponsored' label, enhancing visibility for creators and businesses.

Strategic Push for Revenue and Market Expansion

Meta’s decision follows years of contemplation and a previously halted plan due to privacy concerns and internal resistance. With WhatsApp now exceeding 3 billion monthly users, the platform has become crucial to Meta’s diversification beyond traditional advertising. 

In addition to paid messaging and click to WhatsApp ads both billion-dollar ventures, subscriptions will now allow Channels to offer exclusive content for a fee via app stores. India, a key market for WhatsApp’s business messaging expansion, is expected to be central to this monetisation strategy, with companies like Flipkart already embracing the app for customer engagement.

Read more: Meta Bets Big on Scale AI with $14.3 Billion Investment!

Conclusion 

Meta's latest move to monetise WhatsApp through ads and subscriptions marks a pivotal shift in its strategy to turn its most costly acquisition into a major revenue stream. While maintaining user privacy for personal chats, the focus on business and content discovery through the Updates tab offers a new frontier for growth, particularly in markets like India.

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