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WhatsApp’s ad-free days are over as Meta begins monetization push

Meta has officially announced plans to introduce advertisements to WhatsApp, nearly 11 years after acquiring the messaging platform in a $19 billion deal.

The company announced that businesses will now be able to run “status ads” within the Updates tab of the app—a space used by users to share disappearing content similar to Instagram Stories.

The move marks a shift in WhatsApp’s longstanding approach, which had until now avoided any form of advertising.

According to Meta, the ads are designed to initiate interactions between users and advertisers via the app’s messaging tools.

Meta executives said this strategy aims to avoid interfering with personal conversations, which will remain end-to-end encrypted.

More monetization plans for Meta

In addition to status ads, Meta also plans to monetize WhatsApp’s Channels feature.

Introduced in June 2023, Channels allow individuals and organizations to broadcast updates to followers.

Meta said it will enable search ads in the Channels directory and allow channel administrators to offer monthly subscription services.

While Meta will not immediately earn revenue from these subscriptions, the company plans to take a 10% cut in the future.

Organizations will also be able to pay to boost the visibility of their Channels when users search the directory, a model similar to app store search ads.

WhatsApp founders opposed advertising

WhatsApp’s founders, Jan Koum and Brian Acton, had publicly expressed opposition to advertising, reportedly leaving Meta after disagreements over the company’s efforts to monetize the platform.

Since acquiring WhatsApp in 2014, Meta has focused on growing its user base globally while keeping the platform largely free of commercial content.

Though Meta does not disclose WhatsApp-specific financials, analysts have estimated that it generates between $500 million and $1 billion annually, primarily by charging businesses to use messaging tools for customer interaction.

Nikila Srinivasan, Meta’s head of product for business messaging, said the new ads will be guided by limited targeting criteria, including a user’s location, language, device, and previous ad interactions.

“We really believe that the Updates tab is the right place for these new features,” she said.

Srinivasan also reiterated that personal messages and calls would remain encrypted.

CEO Mark Zuckerberg previously described WhatsApp as “the next chapter” for Meta and said that messaging between businesses and consumers should become a core pillar of the company’s growth strategy.

The post WhatsApp’s ad-free days are over as Meta begins monetization push appeared first on Invezz

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