WhatsApp to introduce ads: All you need to know
The Meta-owned platform on Monday (June 16) announced that it will be introducing ads in its Status feature, where users can share photos, videos, and text messages that disappear after 24 hours. Now, users will see sponsored ads while browsing through Status updates.
WhatsApp will also let users pay to promote their Channels, the one-to-many broadcasting feature to share textual or visual content with followers. In addition, followers will also have the option to pay a monthly fee and subscribe to individual Channels for exclusive content.
Note that these new features will be sequestered to WhatsApp's 'Updates' tab, which is reportedly being used by 1.5 billion people a day: WhatsApp will not show users ads in personal chats or the calls tab.
Nonetheless, the rollout of ads in the Updates tab marks a turning point for a platform deeply woven into the social, economic, and political fabric of countries across the world. It could signal the start of Meta's broader push to monetise WhatsApp's two billion-strong user base, with India as its largest market.
How WhatsApp makes money while offering most of its services for free has long been a point of curiosity for users. For starters, WhatsApp is backed by its parent company, Meta, which also owns Facebook and Instagram. The social media giant raked in more than $160 billion in ad revenue from Facebook and Instagram in 2024.
Meta does not report platform-specific revenue, but estimates suggest that WhatsApp accounts for less than one per cent ($1.3 billion) of the big tech company's yearly earnings. 'Paid messaging is a bit earlier in the journey, but it's also doing well, and we've passed a $1 billion run rate,' Alice Newton-Rex, WhatsApp's vice president of product, was quoted as saying by Financial Times last year.
While still a small slice of the pie, here is how WhatsApp has been generating revenue so far:
Business API: WhatsApp's primary revenue stream, where it essentially makes money from government and enterprise customers looking to communicate with users at scale. This includes e-commerce sites updating users about their purchases, airlines and travel apps using WhatsApp to share boarding passes and travel alerts, etc. The pricing is dependent on the region as well as volume of messages. In cities like Delhi and Bengaluru, tickets for buses, metro, and other public transport booked via WhatsApp's ticketing system include a convenience fee for credit and debit card transactions.
Click-to-WhatsApp ads: Businesses can pay to include a link in their ads that opens a WhatsApp chat with users when they click on it, connecting them directly to the business. These click-to-message ads appear on feeds and stories on Instagram and Facebook as well as Facebook Marketplace. In 2023, Meta CEO Mark Zuckerberg said that click-to-message ads had reached a $10-billion revenue run-rate globally.
WhatsApp Pay: It is a way for users to send money directly through the app. While it is free for individual users, businesses need to pay a fee for payments received through WhatsApp, similar to other digital payment processors. WhatsApp Pay has only been rolled out on a large scale in select markets like India, Brazil, and Singapore. Earlier this year, the NPCI lifted its 100 million-user cap on WhatsApp Pay, allowing access to all 500 million users in India.
In addition to these direct revenue streams, WhatsApp also collects metadata on user behaviour which could be of significant value in the digital advertising space. As the familiar adage goes: if you are not paying for the product, you may be the product.
Ads will be served to users within WhatsApp using Meta's technology. The company said it will not draw from users' personal messages, calls, and statuses to target ads as that content will remain end-to-end encrypted.
Instead, WhatsApp said it will rely on data points such as a user's city, country, and language to determine what ads to show them, along with tracking user behaviour such as the Channels they are following and the way they interact with ads.
The company will also engage in cross-platform profiling of users who have chosen to link their WhatsApp accounts to the Accounts Center. 'Adding WhatsApp to Accounts Center is optional, off by default and can be removed at any time,' Meta clarified.
'People can easily see why a specific ad is being shown and hide or report ads directly on WhatsApp. People can also go to Ad preferences to see recent ad activity and manage their ad settings,' it added.
However, users do not have the option to completely opt out of seeing ads on WhatsApp.
How other messaging apps work
In response to WhatsApp's announcement, Meredith Whittaker, the president of Signal, promised that the independent non-profit-owned messaging app will not have any AI clutter or surveillance ads, regardless of what the rest of the industry does.
Signal is known for its encrypted messaging protocol. It does not have any investors and runs on donations. In 2018, Brian Acton, one of the co-founders of WhatsApp, donated $50 million to Signal.
Meanwhile, Discord has adopted a freemium model which means that it is free to sign-up but additional features such as games come with a price tag. The messaging app popular among gamers also offers a monthly subscription package called Nitro with access to high-quality video streaming and custom emojis.
However, advertising continues to be the most popular business model among messaging apps. It is the main source of revenue for Snap, the company behind Snapchat, which reported a nine per cent YoY increase in advertising revenue to $1.21 billion in the previous quarter.
Given Meta's track record with monetisation and brand integration, ads on WhatsApp could generate over $10 billion in annual revenue within a few years, according to analyst estimates cited by Market Watch.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Standard
2 hours ago
- Business Standard
Helicopter Yatra from Delhi to Khatu Shyamji & Salasar Balaji, a Leap for Aviation & Religious Tourism
VMPL New Delhi [India], August 18: Millions of travellers to two of Rajasthan's most revered shrines -- Khatu Shyam Ji and Salasar Balaji- now have an option to complete the arduous and close to 700 km long round-trip from Delhi within hours, riding a helicopter in style and comfort. Syandan Aviation, a private helicopter service operator headquartered in Delhi, has announced the launch of the new return journey route from August 23rd, with Rohini Heliport serving as the take-off point. The service offers devotees a swift, comfortable, and hassle-free journey, completing the sacred visits in 6 hours, flat. The helicopter yatra service marks the continuing trend of rapid expansion in India's rotor-wing aviation sector, which is witnessing double-digit growth in passenger numbers and new route launches nationwide. "Pilgrimage in India has often meant long hours on the road. We're changing that -- devotees can now seek blessings and return home within 6 hours, in comfort and style," said Abhinav Sahay, the Managing Director for Syandan Aviation Private Limited. The inaugural flights will depart Rohini Heliport at 9:30 am on the 23rd of August, carrying invited dignitaries and celebrities. The round-trip package priced at Rs 95 thousand per seat includes food, transport from helipad to temples, amenities to freshen up before Darshan, and VIP darshan facility at each location. Devotees can book their seats by contacting the aviation company through WhatsApp or a phone call. Details of the yatra package are available on Syandan Aviation Private Limited's website. Rotor-wing growth: facts on the rise Syandan Aviation, which also operates helicopter yatra packages for Uttarakhand Char Dham darshans, says it aims to transform the helicopter aviation ecosystem in the country. Syandan's expansion plans reflect the sentiment in the rotor-wing industry. The number of helicopter operators in India has more than doubled in the last decade. Passenger volume for helicopter tourism has grown at an estimated CAGR of over 12%, fueled by both religious and leisure travel. Several state governments have incorporated helicopter services into their tourism master plans, opening dozens of new routes in recent years, aided by the Central government's UDAN initiative and focus on developing the aviation sector. Boosting Regional Growth The helicopter service is expected to stimulate balanced regional development, creating jobs for local youth, spurring hospitality and retail businesses, and enhancing tourism infrastructure. "Helicopter connectivity is not just about travel -- it's about unlocking economic opportunities for smaller towns and helping them connect with India's growth story," Sahay added. Part of India's Aviation Transformation India's aviation industry is growing faster than the global average, with religious helicopter tourism emerging as a powerful driver of regional connectivity. Syandan Aviation says, apart from enhancing regional connectivity, the company aims to be among the first to establish a Helicopter Emergency Medical Service network in the country, truly democratising tertiary healthcare for millions of underprivileged citizens disadvantaged by their remote locations and rural settings where advanced healthcare infrastructure is either weak or missing. "India has fewer than 500 helicopters--compared to over 2,000 in Brazil. That's about to change, thanks to bold policy moves and a new consumer mindset," says Gagan Jacobs, Director of Sky Pulse Solutions IFSC Pvt. Ltd., India's largest helicopter leasing company based in GIFT City, Gujarat. It is reassuring that some of the positive economic stories are rooted in the strength of domestic consumption as the country responds to global trade headwinds such as steep tariffs slapped by the United States. Like in the past, it is the domestic consumption power and the demographic dividend of 1.4 billion people that can potentially neutralise these threats by driving self-reliant and sustained growth. Beyond numbers, India's growing economic clout, driven by Prime Minister Narendra Modi's vision of Atmanirbhar and Viksit Bharat, is reshaping aspirations. Sales of luxury goods, premium travel, and comfort-oriented services are at record highs.
Time of India
2 hours ago
- Time of India
She studied at a top U.S. university, works as a senior techie at Google, yet H-1B visa jitters shadow her American dream
From Brown University to Big Tech You Might Also Like: US computer science degrees from top universities are leaving graduates jobless: Why is top coding education no longer enough? The Weight of Uncertainty Life Plans on Hold Another Risk in the Process — svembu (@svembu) For many, a degree from an Ivy League university and a career with global tech giants like Facebook and Google might sound like a perfect ticket to stability in the United States. For Indian-born Surbhi Madan, however, the story is more complicated. Despite 12 years in the US and nearly a decade at Google, she says the uncertainty of her H-1B visa status continues to shape her life in unexpected 30-year-old senior software engineer recently shared her story with Business Insider, offering a candid glimpse into the hidden insecurities behind a glittering résumé.Madan moved to the US in 2013 to pursue her bachelor's degree at Brown University, inspired by her elder brother's academic journey. After interning at Google's New York office, she secured a full-time role before graduation in 2017. Her first stroke of luck came when she won the H-1B visa lottery on her initial attempt.'I feel like I got really lucky when I compare it to the situation for recent graduates now,' she told Business career path has since been enviable: a stint with Facebook's feed-ranking team, followed by leadership roles in Google Maps infrastructure and AI integrations. But behind the professional success lies a quieter, more fragile working in the US for over a decade, Madan admits that her life often feels temporary. Everyday decisions—from apartment leases to community volunteering—are filtered through the lens of her visa status.'I refrain from volunteering because it means contacting my immigration lawyer to make sure it's safe,' she explained. Even driving mistakes or tax filing errors, she fears, could jeopardize her stay.A comment by a border officer once drove the point home: when she said she 'lived' in the US, the officer corrected her, saying, 'You don't live here; you work here.' The moment, she said, stayed with constraints of the H-1B system affect not only her career mobility but also her personal milestones. Madan has contemplated freezing her eggs but worried about whether she could access them if she lost her work authorization. 'I can't imagine having a person depend on me while I'm on a temporary status tied to having a job,' she ambitions beyond coding also face roadblocks. With a passion for teaching and mentoring women in tech , Madan has thought about transitioning into education, but her visa does not permit alternative career paths outside her sponsoring many immigrants in similar positions, Surbhi's experience underscores the paradox of the American dream: the country welcomes global talent but ties their future to the unpredictability of a lottery system.'I sit down once a year and ask myself if this is still worth it. So far, the answer has been yes,' Surbhi story adds to the growing debate about whether the US immigration system can keep pace with the realities of the modern workforce—especially when even top tech talent with world-class education faces long-term founder Sridhar Vembu recently highlighted another risk: the financial burden of overseas education. In a post on X, he shared the case of a student who borrowed ₹70 lakh (about $80,000) at a steep 12% interest rate to study at a relatively unknown US university, only to struggle repaying the loan amid poor job prospects. Vembu urged students and families to think twice before taking on such heavy debt, warning that 'we should not trap young people in debt in the name of education.'
Time of India
2 hours ago
- Time of India
A new festive equation: What Indian consumers want from brands in 2025
For Indian consumers , the festive season is more than just a time to shop; it's a cultural event. But in 2025, the rules of engagement are changing. A new study from BigCity Promotions shows that brands can no longer rely on simple discounts to win over shoppers. Consumers are seeking value, entertainment and rewards that feel personal and meaningful. Rahul Poral, director of marketing at BigCity Promotions, notes that this year marks a return to celebratory spending, but with new expectations. "Consumers are proactively and intuitively engaging with promotions," he says. The study, which surveyed over 1,000 people across India, reveals that a majority of shoppers—74 per cent—begin the festive quarter with specific expectations from brands that go far beyond price. Key shopping habits this festive season The data highlights several shifts in consumer behavior: Planned Splurging: Three in four shoppers plan their festive purchases weeks in advance, with gifting, electronics, fashion, and home goods topping their lists. Value Beyond Price: Consumers expect something extra with their purchase. This "added value" could be anything from a small surprise to a tangible reward that makes the purchase feel more worthwhile. Hybrid Journeys: The path to purchase often starts online, is influenced by social media, and ends in a physical store. Brands must create a seamless experience across all channels to succeed. Reward-Led Choice: A significant 56 per cent of shoppers choose brands based on the kind of rewards offered, favoring experiences over simple discounts. Social-First Discovery: Social media platforms like Instagram and WhatsApp are key for discovery, with 70 per cent of people finding festive deals there. The decline of the discount In an age of constant flash sales and app-exclusive offers, the power of a simple discount has faded. The study reveals that 78 per cent of consumers feel that pricing should reflect value, and promotions need to offer more. Discounts are no longer a competitive advantage; digitally driven experiential rewards are now king. The research found that consumers are highly receptive to promotions that capture their attention at the point of purchase. Brands are expected to fight for this attention by creating a compelling reward proposition that is communicated creatively. The power of surprise and gamification Consumers today expect to be entertained and rewarded for their purchase. The study found that 44 per cent of consumers are looking to be surprised and delighted, with 36 per cent wanting unique rewards. This is where gamification comes into play. A full 42 per cent of those surveyed enjoy participating in gamified experiences to win rewards. Simple, interactive games like spinning a wheel or scratching a card create a sense of anticipation and deliver instant gratification. This blend of play and reward creates a compelling engagement loop that can drive sales and build brand loyalty. Designing for a mobile-first audience The new rules of festive engagement are built for speed and simplicity. The study emphasised key factors for success: Frictionless Entry: The customer journey must start with a single tap or scan, without long forms or complex sign-ups. Easy Mechanics: Reward mechanics should be instantly understood through visual cues and short videos. Instant Gratification: Rewards must be real-time or near-instant. Any delay risks a high drop-off rate. Mobile Optimisation: The entire experience must be optimized for mobile, with tap gestures, short screens, and WhatsApp flows. Smart Redemption: Redemption should be a feature, not a hurdle. Pre-filled details and auto-applied vouchers make claiming a reward feel like a win. Grand prizes also play a role, with 77.7 per cent of consumers preferring high-impact rewards like electronics, gadgets, and travel vouchers over cash. These tangible, lifestyle-relevant prizes can be a powerful symbol of a brand's value. What hinders participation? The study also looked at what frustrates consumers most. The top complaints included: Too many conditions: 30.6 per cent cited excessive terms and conditions. Irrelevant rewards: 26.5 per cent felt the rewards weren't useful. Difficulty in redemption: 12.1 per cent found it hard to redeem their rewards. Lack of trust: 27 per cent of respondents said they were stopped from participating because the offer looked fake or was unclear. For brands, the message is clear: clarity beats cleverness. Simpler terms lead to higher participation, and a reward that doesn't match the consumer's lifestyle is seen as worthless. Instant and easy redemption is a non-negotiable. Ultimately, the festive season in 2025 will reward brands that move beyond a price-only mindset and embrace a strategy that delivers emotional engagement, tech-enabled experiences and rewards that truly resonate with their customers.
