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Meta is introducing paid ads to WhatsApp as major technology groups cash out into the world’s most popular messaging services.
On Monday, WhatsApp, which counts 2 million businesses out of over 300 million monthly active users, said it will roll out global features in the coming months.
Ads are displayed in the status section of the messaging service and in the (Update) tab on the left side of the app screen, so they are kept separate from the main chat conversation area.
“This is a long-standing demand we have from businesses, and they are interested in maintaining people’s personal space,” said Nikila Srinivasan, vice-chairman of WhatsApp’s Business Message.
Financial Times first reported that parent company Meta is discussing how to introduce an advertising model to WhatsApp in 2023. Cathcart, head of WhatsApp at the time, said the report was “false. We’re not doing this.”
Before WhatsApp was acquired by Facebook for $1.9 billion in 2014, co-founder Brian Acton was “Ads-free! No games! No gimmicks!” company mantra.
The group said the decision to break in from its longtime position was due to the current “space” of advertising that does not hinder personal chats.
“People want to use whatsapp on more than just close friends and family than to convey their messages. And looking back at a year and a half ago, this is part of the reason we introduced this update tab.
In April, Meta reported better than expected, restraining investor concerns, and the economic uncertainty associated with US President Donald Trump’s tariff policy could significantly knock Meta’s advertising business.
Deploying WhatsApp ads will help the meta increase revenue even further, allowing US tech giants to monetize one of the few platforms they still lack marketing.
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Alice Newton-Rex, product director for WhatsApp, previously told FT that WhatsApp status is “the most used narrative product in the world.” Users can post images that disappear after 24 hours. The (Updated) tab attracts 1.5 billion users every day, the company said.
WhatsApp also introduces the ability to subscribe to channels from creators and streams of exclusive content at a monthly fee. Certain channels, such as small and medium-sized businesses and branded channels, can also be paid to be promoted in feeds on different accounts.
The company says messages, calls and status remain end-to-end encrypted. This means that only the sender and receiver can access the content.
However, he added that WhatsApp will use basic information such as user location, device language, channels you follow, and how you interact with marketing, to determine which ads you will be serving.
