
WhatsApp Introduces Ads in Its App
When Facebook bought WhatsApp for $19 billion in 2014, the messaging app had a clear focus. No ads, no games and no gimmicks.
For years, that is what WhatsApp's two billion users — many of them in Brazil, India and other countries around the world — got. They chatted with friends and family unencumbered by advertising and other features found on social media.
Now that is set to change.
On Monday, WhatsApp said it would start showing ads inside its app for the first time. The promotions will appear only in an area of the app called Updates, which is used by around 1.5 billion people a day. WhatsApp will collect some data on users to target the ads, such as location and the device's default language, but it will not touch the contents of messages or whom users speak with. The company added that it had no plans to place ads in chats and personal messages.
'Thinking through the lens of privacy was incredibly important for how we thought about bringing these features to market,' said Nikila Srinivasan, a vice president of product management at WhatsApp. 'Your personal messages, calls and statuses, they will remain end-to-end encrypted.'
In-app ads are a significant change from WhatsApp's original philosophy. Jan Koum and Brian Acton, who founded WhatsApp in 2009, were committed to building a simple and quick way for friends and family to communicate with end-to-end encryption, a method of keeping texts, photos, videos and phone calls inaccessible by third parties. Both left the company seven years ago.
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UPI
an hour ago
- UPI
Meta-owned WhatsApp starts in-app ads for first time
1 of 2 | On Monday, billions of WhatsApp users around the world will see business ads in its "updates" tab as parent comapny Meta begins to monetize the WhatsApp "channels" feature with paid subscriptions and search advertising. File Photo by Hayoung Jeon/EPA-EFE June 16 (UPI) -- The messaging service WhatsApp on Monday will begin to display ads for the first time as parent company Meta seeks to make business changes to the encrypted global platform. Billions of international users of the popular messaging app will see business ads in its "updates" tab as Meta begins to monetize the WhatsApp "channels" feature with paid subscriptions and search advertising. In addition, business will have the option to run "status ads" that prompt a WhatsApp user to interact with advertisers on messenger. Officials say, however, that WhatsApp will only collect limited private data used to target ads. "Your personal messages, calls and statuses, they will remain end-to-end encrypted," Nikila Srinivasan, Meta and WhatsApp's VP of product management, told The New York Times. There are no current plans for ads to be in private chats. Meta, the global social media giant at one time known as Facebook when it purchased WhatsApp in a 2014 deal for some $19 billion, now permits advertisers to run click-to-message ads to WhatsApp via its branded subsidiary companies Instagram and Facebook. WhatsApp has more than 3 billion monthly users, with more more than 100 million just in the United States and "growing quickly from there,' according to Meta CEO Mark Zuckerberg. In April, Zuckerberg said its ability for users to contact businesses "should be the next pillar" of WhatsApp's business model. But according to a company official, WhatsApp will use "very basic information" -- such as a user's home country, city, language, smart phone device or select data -- in order to pick what ads to show, but ads might cost less to place on WhatsApp versus Facebook or Instagram. In 2024, nearly all of Meta's $164 billion revenue arrived from advertising and it holds about a 15% share of digital business advertising globally. The advertising business for Meta-owned companies is "in as strong a position now as it's ever been," Brian Wieser, a financial analyst and founder of consulting firm Madison and Wall, told the Times.


CNBC
an hour ago
- CNBC
Meta wisely ramps up efforts to make WhatsApp a moneymaker
Meta Platforms is taking a major step toward awakening the sleeping giant of WhatsApp, sending shares of the Club name higher on Monday. The social media giant announced Monday that it is bringing advertisements to a select corner of WhatsApp known as the "Updates" tab, where users can post status updates — basically like an Instagram story — and see content from the business "channels" they've chosen to follow. Ads will now be shown within the status section of the Updates tab, and businesses will also be able to pay to promote their channel within that brand feed. In another monetization initiative, users can sign up for a monthly subscription to receive exclusive updates from their "favorite channel," such as a news network. "Subscriptions, promotions and ads will appear only on the Updates tab, away from your personal chats. This means if you only use WhatsApp to chat with friends and loved ones, there will be no change to your experience at all," the company said in a press release. Investors have for years viewed Meta's WhatsApp and Messenger platforms as large, untapped sources of revenue growth, given their massive user bases and — until now — minimal monetization initiatives. In 2014, the company then known as Facebook bought WhatsApp for $19 billion. Previously, Meta's main focus to make money from WhatsApp was paid business messaging features, which generate around $1.5 billion to $2 billion in annual revenue, Wolfe Research estimated earlier this year . That's small potatoes for a company that raked in $164.5 billion in sales last year, primarily through ads on Instagram and Facebook. Advertisers want to go where the eyes are, and WhatsApp has a lot of them — 1.5 billion daily users, in fact, Meta noted in its press release Monday. WhatsApp is generally less popular in the U.S. than it is abroad, where its ability to send messages over the internet instead of relying on more-costly SMS texts had huge appeal in its early days. In our view, Meta's move to bring these ad changes to the Updates tab alone is a smart one. The market reaction, with the stock up more than 3% to roughly $703 a share, suggests we are not alone. WhatsApp is primarily an encrypted messaging app. So, while investors have wanted to see more monetization take place on app — given its large reach, especially with businesses increasingly use it to connect with customers — it is smart to interfere as little as possible with the day-to-day messages users share with friends and family. After all, what good is monetization if change leads to a deterioration in the user experience? That's also why Meta is smart to emphasize that, despite these ad changes, it is keeping the encrypted nature of the app. In other words, your daily chats won't be used to determine what ads to show you —indeed, end-to-end encryption means that nobody can access your conversation, not even Meta. Instead, the company said in its press release that it will "use limited info like your country or city, language, the Channels you're following and how you interact with the ads you see" to show relevant advertisements. The bottom line? We're thrilled this long-awaited move is coming to fruition. It's being done in a measured way, so as not to degrade the user experience of its bread-and-butter use case, and it should set Meta up for further advertising growth in the quarters ahead. The timing is also significant, as ad buyers are no doubt reassessing where they want to spend their marketing budgets given the rapid adoption of artificial intelligence chatbots to search the internet. The shift in consumer has important, yet-to-be-settled implications for Meta's key advertising competitor in Google parent Alphabet. (Jim Cramer's Charitable Trust is long META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
an hour ago
- Yahoo
Meta Stock Climbs as Social Media Giant Rolls Out Ads on WhatsApp
Meta Platforms (META) shares climbed Monday as the social media giant said it's introducing paid advertising to WhatsApp, in a move that could expand its revenue streams. Shares were up over 2.5%, above $700, in recent trading Monday amid a broader rebound from Friday's losses when geopolitical worries rattled markets. (Read Investopedia's full coverage of Monday's trading here.) In a reversal of WhatsApp's longtime 'no ads' mantra, Meta said Monday that it's bringing channel subscriptions, promoted channels, and ads to its WhatsApp Updates tab, which the company said attracts about 1.5 billion users daily. The new features are expected to be rolled out globally over the next few months in an attempt to boost Meta's ad revenue. Separately, Oppenheimer analysts raised their price target for the stock to $775 from $665 in a Sunday research note, citing Meta's improving ad market outlook. The analysts suggested Meta could even see further upside with "higher than expected monetization driven by Instagram, Stories, and video." The stock has added nearly a fifth of its value since the start of the year, making it the best-performing member of the Magnificent Seven in 2025. Read the original article on Investopedia Sign in to access your portfolio