Meta's Introduction of Advertising on WhatsApp Signals Shift in Revenue Strategy

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US tech giant reverses ‘no ads’ stance at world’s most popular messaging service

WhatsApp ads will now be visible in the Status section of the messaging service, accessible through the Updates tab on the app screen.

Meta, the parent company of WhatsApp, has announced that it will be incorporating paid advertising into the app for the first time, marking a significant change for the platform.

However, these ads will not intrude on private conversations, which are end-to-end encrypted. Instead, Meta will be placing the ads in the Updates tab, where WhatsApp's Channels and Status features are located. The Updates tab sees daily usage from 1.5 billion people, according to Meta.

Businesses will have the option to pay for prominent placement in the Status section, increasing their visibility to consumers. Additionally, channel owners will be able to charge for exclusive content within WhatsApp, and promoted channels will be introduced to help grow their presence on the app.

Revenue Boost for Meta

This move is expected to provide Meta with a new stream of revenue from the widely used instant messaging app. In a blog post announcing the new features, the company stated, "We've been talking about our plans to build a business that does not interrupt your personal chats for years and we believe the Updates tab is the right place for these new features to work."

Meta has assured users that only limited information will be used to serve the ads, with personal data such as phone numbers and messages remaining private. Information such as a user's location, language, followed channels, and interaction with ads will be utilized.

The blog post emphasized the commitment to privacy, stating, "Like everything we do at WhatsApp, we've built these features in the most private way possible. Your personal messages, calls, and statuses remain end-to-end encrypted, meaning no one (not even us) can see or hear them."

For users who have linked WhatsApp to Accounts Center, ad preferences and information from other Meta accounts will also be considered.

Shift in Focus

Meta acquired WhatsApp over a decade ago in a multi-billion dollar deal, but advertising was not initially a priority for monetizing the app. The platform's founders, Jan Koum and Brian Acton, had previously vowed to keep ads out of the instant messaging service. Both have since departed from Meta.

Instead of ads, WhatsApp had been concentrating on features related to digital payments and shopping. However, with the introduction of ads, Meta is signaling a shift in its revenue strategy for the app.

The global rollout of ads on WhatsApp is set to commence today, according to Meta.



Source: The Irish Times
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