To make WhatsApp more profitable, Meta, the Mark Zuckerberg-owned social media conglomerate, plans to show ads within the mobile and desktop app.
In a recent interview with Brazilian publication Folha de S. Paulo, Will Cathcart, the head of WhatsApp, shed light on the platform’s evolving financial strategies following its acquisition by Meta.
Cathcart clarified that, despite Meta’s ownership, WhatsApp would refrain from displaying ads in user inboxes or chats, emphasizing that users do not want to be inundated with advertising in those spaces.
However, Cathcart left the door open for potential advertisements in other app areas, mentioning Public Channels and Status (WhatsApp’s equivalent of Stories) as possible ad placements. He also suggested alternative monetization methods, such as charging users to join channels similar to Telegram.
While refraining from ad placements in conversations, WhatsApp has been exploring ways to generate revenue beyond advertising.
According to Cathcart, one of its most significant income sources is the WhatsApp Business API, which provides specialized tools for businesses of all sizes, contributing around $10 billion annually.
This revenue stream demonstrates WhatsApp’s capacity to sustain its financial health without relying on in-chat advertisements. However, experts have suggested that sooner or later, WhatsApp will start serving ads within chats once their WhatsApp Business venture hits saturation point.
The idea of introducing ads to WhatsApp has been presented previously. In 2018, the platform experimented with displaying ads inside Status. However, these plans were temporarily shelved due to concerns about user reactions and privacy issues.
Cathcart also revealed that WhatsApp is most prevalent in India, Indonesia, and Brazil. He underscored the company’s unwavering commitment to user privacy and unveiled plans to enable users to create private channels for internal communication in various settings, including businesses and schools.
In the broader interview, Cathcart delved into WhatsApp’s impact on political campaigns and the company’s investments in AI-based features, underlining the app’s ongoing development and evolution under the Meta umbrella.
