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With ads and paid subscriptions, is WhatsApp Meta's next big bet?
After the success of bringing businesses to WhatsApp, Meta — its parent — is now introducing ads and subscriptions to Status and Channels under the Updates tab of the messaging app, the company said on Monday. This move will further push its monetisation efforts on WhatsApp.
The Updates tab is now used by 1.5 billion users every day.
Users who follow certain Channels will be able to receive exclusive updates for a monthly fee. The Status tab will also begin featuring advertisements from businesses, enabling easier connection with users.
This is the first time that businesses will be able to run advertisements directly on WhatsApp. Previously, there were only two ways to target users via WhatsApp: first, through paid messaging used by large businesses to send updates, and second, via ads on Facebook and Instagram that click through to open a WhatsApp chat.
In a select media briefing, the company stated that for users who only use WhatsApp to chat with friends and family, there will be no change. To show ads in Status and Channels, the platform will share minimal information such as the user's country or city, language, and the Channels they follow.
Alice Newton-Rex, Vice-President, Product at WhatsApp, said the platform will never share or sell users' phone numbers to advertisers. Personal messages, calls and group conversations will continue to be encrypted.
'We are increasingly seeing and hearing people wanting to use WhatsApp for more than just messaging close friends and family. That's part of the reason we introduced the 'Updates' tab as a place for optional experiences on WhatsApp like Channels and Status. Almost 1.5 billion people globally use Updates daily. It's often where people go when they are looking to discover something new,' said Newton-Rex. The new features will roll out gradually over the next few months.
The timing of this launch is significant, as WhatsApp has seen its two existing advertisement models scale well — both paid messaging and click-to-WhatsApp ads are now billion-dollar businesses.
This is especially relevant for a market like India, where WhatsApp has over 500 million users, and revenue from WhatsApp Business doubled in 2024. Sandhya Devanathan, Head of Meta India and South East Asia, previously told Business Standard that business momentum for WhatsApp in India is 'outpacing' several other countries.
An important aspect of the rollout is the focus on preserving individual privacy. At a time when regulators worldwide are scrutinising big tech's use of personal data, WhatsApp maintains that it will share only minimal information with advertisers and that messages will remain encrypted.
In response to a question about rising scams and frauds, and how ads on Updates would be safeguarded, Newton-Rex said all ads in Status would need to comply with Meta's advertising standards. 'We review every advertisement against our policies, and in addition, users can report or block businesses on WhatsApp or report individual ads,' she said.
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