How WhatsApp ads could contribute to Meta's revenue growth
Meta is reportedly considering the addition of advertisements within WhatsApp. WhatsApp's head, Will Cathcart, initially denied the introduction of ads on WhatsApp but has now revised his statement, saying that the ads would not be displayed in users' chat inboxes. In a recent conversation with Brazilian media outlet Folha, Cathcart explained that ads might instead be placed in other app sections like the Status or Channels.
WhatsApp could attract numerous advertisers
WhatsApp is end-to-end encrypted, so it is quite difficult for Meta to place personalized ads based on user-generated content and interests, at least in the chats. However, it might soon roll out commercials in the Status or Channels. As of November 2023, WhatsApp boasts an estimated 2.78 billion global users, which makes it an enticing platform for advertisers seeking to reach a vast audience. WhatsApp might draw in a substantial number of advertisers, resulting in enhanced revenue generation.
Current revenue model of messaging platform
At present, WhatsApp generates income through its enterprise usage. Meta levies a fee on businesses for the ability to communicate with customers through the app. It might also introduce additional paid services, such as Facebook and Instagram ads, that direct users to a business's WhatsApp presence. With Facebook Messenger, Instagram, and WhatsApp, Meta reportedly generates $10 billion annually, although it is unclear how much of this amount is derived from WhatsApp alone.
Generative AI features in WhatsApp
Separately, Cathcart also addressed generative AI features in WhatsApp, designed to offer users information from the internet without requiring manual browsing. This could potentially serve as another avenue for ad monetization. He stated, "Another thing is that we have the AI agents, who you can talk to, exchange messages with, and it answers your questions. It can give ideas, search the internet, and give recent and accurate information." The timeline for incorporating ads into WhatsApp remains unclear.
