Meta Brings Ads to WhatsApp in Major Strategic Shift

Meta Brings Ads to WhatsApp in Major Strategic Shift image

Image courtesy of britannica.com

Meta is officially introducing ads to WhatsApp, a move that marks a dramatic shift for the messaging platform whose founders had long resisted advertising. The decision, 11 years after Facebook acquired WhatsApp for $19 billion, underscores Meta CEO Mark Zuckerberg’s broader vision to transform the app into a major revenue driver.

Meta announced Monday that businesses will now be able to place “status ads” within WhatsApp, prompting users to engage with advertisers through the app’s messaging tools. These ads will appear only in the app’s “Updates” tab, deliberately separated from personal chats. Additionally, Meta will begin monetizing WhatsApp’s Channels feature through both search ads and subscription options.

The rollout of advertising on WhatsApp is a pivotal move in Zuckerberg’s effort to make the app “the next chapter” in his company’s history, as he told CNBC’s Jim Cramer in 2022. This comes as Meta faces ongoing antitrust scrutiny from the Federal Trade Commission over its acquisitions of WhatsApp and Instagram.

While Meta already allows click-to-message ads on Facebook and Instagram that direct users to WhatsApp for direct business engagement, the latest move takes monetization a step further by placing ads directly inside WhatsApp. “Messaging between brands and consumers should be the next pillar of our business,” Zuckerberg told analysts in April. He also revealed that WhatsApp now has over 3 billion monthly users, including “more than 100 million people in the U.S. and growing quickly there.”

Now, businesses can run ads within WhatsApp’s “Status” section—part of the Updates tab—where users can post disappearing content such as photos, videos, or text, similar to Instagram Stories.

Since Meta’s acquisition in 2014, WhatsApp has seen substantial global growth. However, it remained an ad-free platform, unlike Meta’s other properties like Facebook, Instagram, and Threads. This was by design: WhatsApp co-founders Jan Koum and Brian Acton were outspoken critics of advertising and left Facebook after clashing with leadership over monetization strategies.

While Meta does not break out WhatsApp’s revenue, analysts have estimated it to fall between $500 million and $1 billion, largely from charging businesses for access to messaging tools and services.

Now, Meta will “use very basic information” to determine which ads users see, according to Nikila Srinivasan, Meta’s head of product for business messaging. This data includes a user’s country, city, device, language, and behavior such as whom they follow or how they interact with ads.

WhatsApp’s Channels and Updates tab, introduced in June 2023, are central to the app’s new business strategy. Channels allow individuals and organizations to send broadcast-style updates to followers. Meta confirmed Monday that it will begin monetizing this feature as well.

Channel administrators will now be able to pay to boost their visibility in search results within the WhatsApp directory—similar to advertising models used in Apple’s and Google’s app stores. They’ll also be allowed to charge monthly subscription fees for access to exclusive content and updates.

While Meta won’t immediately profit from these subscription fees, a company spokesperson said it eventually plans to take a 10% cut.

Srinivasan emphasized that Meta is working to ensure the new ads are minimally disruptive to the user experience. “We really believe that the Updates tab is the right place for these new features,” she said, noting that users’ personal chats, calls, and status updates will remain encrypted.

Meta’s strategic shift to monetize WhatsApp highlights the company’s evolving focus as it seeks new revenue streams and deeper integration of business messaging across its platforms.

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