When Facebook bought WhatsApp back in 2014 for $19 billion, it wasn’t very clear how Facebook was to get its money back given that they promised that WhatsApp would remain an ads free platform. Two years later, Facebook announced that they will be using WhatsApp data to push targeted ads for WhatsApp users but on Facebook and Instagram.
In 2017, WhatsApp introduced its now infamous status updates that allow users to share texts, photos, and videos with their friends and contacts; texts, photos, and videos that last for 24 hours before they disappear. When I saw this feature when it was launched, I knew that it was a great way to introduce ads on WhatsApp. But they did not. Instead, they took the concept of ads on status updates to Facebook and Instagram – I bet so that they can be seen as remaining true to their promise of keeping ads away from WhatsApp. But this is very likely to change, especially now that Meta has introduced WhatsApp Channels on the status page.
WhatsApp channels is a new feature that was introduced last month in Singapore that allows you to follow updates from people and organizations that matter to you, such as your hobbies, sports teams, local officials, and more. Channels are a one-way broadcast tool for admins to send text, photos, videos, stickers, and polls to an unlimited number of followers. You can think of WhatsApp Channels as a private way for users to follow information from people and organizations important to them and are separate from personal chats and calls. Since June 24th, the channels have been expanded to other countries including Egypt, Chile, Malaysia, Morocco, Ukraine, Kenya and Peru.
WhatsApp Channels gives Meta a perfect opportunity to collect money from channel owners. Channels owners who wish to push their content to a wider reach are very likely going to be asked to part with a few dollars (probably through Facebook and Instagram ads), and in so doing their content gets to be shown to more of their channel followers. Already, WhatsApp has been integrated in Facebook and Instagram ads through the call-to-action buttons. The CTA buttons direct users to a WhatsApp chat where they can learn more about the product/service and chat directly with the business representative. WhatsApp Channels can now complement Ads that click to WhatsApp by providing a way for businesses to maintain and grow their relationship with their customers on WhatsApp.
Businesses can use Channels to send regular updates and offers to their followers, who have opted in to receive them. Businesses can also use Channels to direct their followers to their website, app, or other platforms where they can make purchases or transactions. WhatsApp Channels can also help Meta monetize WhatsApp by charging businesses for creating and promoting channels, as well as for sending updates to their followers. Meta can also use data from Channels to improve its ad targeting and relevance on Facebook and Instagram platforms.
It is becoming clearer that despite initial promises to keep WhatsApp free from ads, the evolving landscape and the introduction of new features have opened up opportunities for Meta to monetize WhatsApp through innovative means. WhatsApp’s journey from ad-free beginnings to its current state with WhatsApp Channels and integrated ads finally settles the old question, “how will Facebook recoup its $19 billion investment to a no-ad, no-subscription, no-purchase platform?”
