Mark Zuckerberg, the CEO of Facebook, has recently stated that Meta will not be bringing advertising to WhatsApp in the near future. This is a relief to many users of the popular messaging app, as ads can be quite intrusive. Zuckerberg did not give a timeline for when ads may eventually come to WhatsApp, but for now, users can enjoy the app without worrying about being bombarded with advertisements.
Meta Platforms (META), a significant player in social media, is having a tough time right now. The parent corporation of Facebook, Instagram, and WhatsApp is making fun of itself and is witnessing how quickly investor confidence is eroding. Since January, the market value of Meta shares has decreased by roughly $570 billion, or 62.3%. Blame powerful rival TikTok for stealing market share in advertising revenue and Apple (AAPL) for restricting Meta’s ability to send tailored advertisements to iPhone users using its apps. Apple has altered its privacy guidelines so that users may choose which apps they wish to allow to monitor their online activities.
Only catastrophic losses have been experienced thus far in the metaverse, which CEO Mark Zuckerberg has hailed as the next great thing. Consequently, Zuck and Meta’s biggest challenge is finding growth drivers and placating impatient investors. In these columns, we advocated for Meta to monetize WhatsApp by allowing advertisers to advertise their goods and services on the messaging app, which is used by more than 2 billion people and is accessible in more than 180 countries.
We wrote that WhatsApp is a true money mine. Zuckerberg and Meta are in charge of mining it. According to persons with direct knowledge of the situation who declined to be named to talk openly, Meta does not currently have any plans to introduce advertisements on WhatsApp. The dominant social media company is concerned that adding adverts will degrade the user experience for those who are used to ad-free platforms.
But according to the sources, Meta may soon rethink its intentions. On October 26, Zuckerberg may address the topic of WhatsApp monetization during the call to discuss the third quarter’s financial results.
At one point, WhatsApp explored adding advertising to the “status” area of the app but ultimately decided against it. However, according to the sources, it might bring these plans back. WhatsApp “is focused on adding new features to assist businesses maximise the value of its service today and feels the opportunity with corporate communications is tremendous,” a spokeswoman for the company said
Prioritize messaging :
As customers change their communication habits away from traditional channels like phone and email, WhatsApp’s monetization ambitions now concentrate on how to create profits around messaging. Therefore, the platform focuses on three opportunities.
The first is using advertising to bring in indirect income. Its official name is Click to WhatsApp Business. Suppose small businesses promote on Facebook and Instagram, where a button with the WhatsApp logo is put for the client who might be interested in the promotional service or product. In that case, they have additional motivation to draw in new clients.
The user is immediately entered into a WhatsApp conversation with the seller when they click the button. According to the Meta example, WhatsApp is the “store counter,” where you finalize the transaction and make payment, while Facebook and Instagram are the “store front.” A comparable functionality is provided by Messenger, Meta’s other messaging service.
Approximately one million marketers are actively using this service. According to a source, it’s “already a huge revenue possibility” for WhatsApp. Most of these corporate clients are in high-potential regions, including Africa, Brazil, Mexico, India, and Indonesia.
Nevertheless, there is a privacy drawback: since the user uses Facebook and Instagram, Meta collects their data.
The second potential is what WhatsApp has been providing large businesses since 2020 as a different customer service option. These companies may incorporate WhatsApp chat into their customized websites thanks to the WhatsApp Business API, delivering tailored customer experiences. While humans can take over more complex inquiries, chatbots can handle simple client requests. Currently, WhatsApp charges for each client conversation, which includes all messages sent within 24 hours. In 2020, there were already 50 million users of the service. WhatsApp does not release updated statistics, but this number must have gone up given the pandemic. This product holds much promise for Meta in increasing
A Recurring Subscription to Whatsapp Business User :
The site has also been piloting a premium service for small businesses for the past ten days as a third income possibility. This tool complements the standalone WhatsApp Business App, released in 2018, and enables small businesses to advertise their goods and services and interact with customers freely.
The premium service will give retailers cutting-edge tools. For instance, the same WhatsApp account will be manageable across many devices. In other words, a neighborhood nail salon staff can communicate with customers and manage consumer demands using various devices, enabling the distribution of requests among several employees.
Additionally, WhatsApp will allow small businesses to host a personalized URL for them, which may act as their little website. The company is considering collecting a “minimal price” for the premium service, although the amount has not yet been decided and would also vary per nation. According to the sources, testing the service and its pricing is still ongoing.
The subscription-based service will be available. To make any conclusions from the initial feedback is still too soon. According to the sources, WhatsApp intends to introduce the service in 2023.
Recently Facebook Announced the Retirement of ‘Instant Articles’ :
Facebook has announced that it will stop offering Instant Articles in April 2019 as part of its ongoing shift away from news content in favor of entertaining video (a la TikTok).
Instant Articles on Facebook :
Instant Articles were first introduced in 2015 to give publishers a more enjoyable, quick-loading way to present their articles on Facebook and increase reader engagement within the app. Since then, Meta has worked to improve its rapport with publishers and assist them in using Facebook as a supplemental platform to their primary websites by incorporating more referral links and subscription tools.
But now, it seems that developing relationships with publishers is less critical. According to Axios, Meta has decided to stop supporting Instant Articles to meet better user preferences, which increasingly favor video as the most engaging content type.