WhatsApp Introduces New Monetization Features for Businesses

WhatsApp announced on Monday, June 16th, new ways for businesses to monetize and promote themselves on the platform. According to Will Cathcart, the director of WhatsApp, these features are designed to “help businesses grow.” Channel owners, who use the platform to broadcast messages to a large audience, will now be able to offer paid subscriptions to their users.

WhatsApp will also allow channel owners to improve their channel’s visibility in search results for a fee. Additionally, businesses can now run advertisements within the “Statuses” feature, similar to Instagram Stories.

Cathcart emphasized that these new features, including “Channels” and “Statuses,” only affect the “Updates” tab. “If you only use WhatsApp to send messages or make calls, this won’t change anything for you,” he stated, reiterating that encrypted conversations in the “Chats” tab will remain ad-free.

Economic Model

Unlike other free Meta applications like Facebook and Instagram, WhatsApp has not relied on targeted advertising and has been exploring different economic models. The company has chosen to focus on providing services to businesses. Has WhatsApp finally found its balance? With over 3 billion monthly active users and 1.5 billion daily users for the “Updates” tab, WhatsApp “already generates significant revenue” that is “greater than its operating costs,” according to Cathcart, who mentioned revenues of “several billion dollars per year.”

For example, WhatsApp offers businesses the ability to handle customer service through messaging, similar to Air France. Cathcart also mentioned small businesses and shops, particularly in India and Latin America, that lack websites or apps and advertise on Facebook or Instagram with a “Contact Us on WhatsApp” button.

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