After years of speculation and planning, WhatsApp has finally added advertising to the app. The widely-used messaging app, owned by Meta, launched ads on Monday, which is a major change to its business model. However, users can rest easy knowing the ads will only show in the Updates tab, meaning personal chats will remain ad free.
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A Long-Awaited Change
The development process has taken seven years. In 2017, Meta announced its plans to introduce ads in WhatsApp, but it faced multiple delays, and had to shift course. The company had initially planned to introduce ads throughout the app but reversed course in 2020 after facing significant user backlash.
Now, Meta seems to be confident it has found the right method. Ads will appear in the Updates tab, where users typically see Status updates from their contacts. Chats will be completely free of ads.
How WhatsApp Ads Will Work
In the new advertising method on WhatsApp, companies now have the opportunity to advertise via WhatsApp’s Status, which works in a similar way to an Instagram Story. Users can post photos, videos, and text messages that vanish after 24 hours, and starting today, companies can post in this space, too.
When users scroll through their Updates tab, they will now see content from the brands that has been designated as sponsored content right along with the updates they receive from family and friends. The sponsored content will be clearly marked as “sponsored content,” which will help users distinguish the difference between updates from friends or family and the company’s content.
Users will also be able to engage with the business posts by starting conversations with the advertising companies. This allows for a seamless transition between discovery and customer service, where prospective customers can ask questions or make inquiries without having to leave the platform.
What Data Will Meta Use?
Meta has said that its policy for during advertising on WhatsApp, the only information will be used for “limited” ad targeting purposes. Meta will take several things into account when serving ads:
- Your device’s language settings
- Your country or city location
- Channels you follow on WhatsApp
- How you interact with ads on the platform
For users linking their WhatsApp to Meta’s Accounts Center, it will be used ad preferences, and any other information shared with Meta about you from other platforms like Facebook and Instagram.
The company promises it will never sell or share phone numbers with advertisers. Moreover, your private messages, calls and group chats will all remain fully separate from advertisements. These private conversations will continue to be protected by end-to-end encryption, and will never be used for ad targeting purposes.
Why Now? The Business Behind the Decision
The rollout timing fits with a wider business plan happening at the Meta company. Status is extremely popular — more than 1.5 billion people use it every day. That’s prime real estate for advertising, and a significant revenue opportunity for Meta.
Advertising is Meta’s primary income source, generating more than $160 billion in ad revenue last year alone. Now consider that WhatsApp has more than 2 billion users worldwide. That means an untested advertising goldmine for the business.
Additionally, this aligns with CEO Mark Zuckerberg’s belief that WhatsApp can be “the next chapter” in Meta’s story. The company needs revenue diversification for its investments in new technologies, like VR and artificial intelligence.
Additional Monetization Features
In addition to regular ads, Meta is rolling out two more monetization methods:
- Promoted Channels: When users click on the Explore button to find new channels, they will see promoted channels that have been paid for by businesses.
- Channel Subscriptions: WhatsApp will also have paid subscriptions for channels so that creators and businesses can share exclusive content with paying subscribers.
These two methods offer multiple ways to make money while still having the central messaging experience present.
What This Means for Users
For the majority of people who use WhatsApp, there will be no significant changes in their everyday experience. Conversations with friends and relatives will stay the same as before – private, encrypted, and now ad-free. The only difference is that users may see a few sponsored posts in the Updates tab occasionally.
Users who rarely check Status updates may barely notice the change. Users who frequently browse the Updates tab will see a mix of personal updates and business content, which is similar to what users experience on other social media apps.
The company underscores that this approach respects users’ privacy and creates new opportunities for businesses to reach potential customers. Users will also have control over their ad preferences and can adjust their preferences in Meta’s Accounts Center.
What Happens Next?
This is a big change for WhatsApp. It began as a pure messaging app. Now it’s evolving into a place for businesses to also find customers.
Meta has been careful to place ads only in the Updates tab. They know people don’t want ads in their personal chats. This is an example of the careful balancing act that will keep users happy while bringing revenue for the company.
As more people engage with this capability, Meta may expand advertising opportunities for businesses, but, for now, sending private messages will be secure.
WhatsApp users continue to use the messaging feature with friends and family as always while businesses can reach audiences interested in products they want to sell.
