WhatsApp is gearing up to finally monetize its messaging app by charging large enterprise businesses for tools to better communicate with customers.
“We do intend on charging businesses in the future,” WhatsApp’s Chief Operating Officer Matt Idema told the Wall Street Journal. “We don’t have the details of monetization figured out…yet.”
WhatsApp will also offer a free app to small-to-medium sized businesses, though it hasn’t outlined the specific functionality of the app. The enterprise solution will allow global companies “to provide customers with useful notifications like flight times, delivery confirmations, and other updates”.
The company did write that it wants to facilitate “someone placing an order with a local bakery or looking at new styles from a clothing store” and “shopkeepers who use WhatsApp to stay in touch with hundreds of customers from a single smartphone”, plus offer “an easier way to respond to messages.”
Whatsapp users are currently worried that businesses might be able to cold-message users with sponsored message ads. But WhatsApp is quoted stating that businesses will only be able to contact WhatsApp users that have agreed to be messaged by initiating the conversation.
“Businesses will only be able to contact people who have provided their phone number and agreed to be contacted by the business over WhatsApp.”
That’s the same way Facebook Messenger-sponsored messages work, where businesses can pay to reconnect with people they’re already chatting with.
The company also says that the enterprise solution will initially be free but it does plan to charge businesses. Some functionality that will be offered by the Business app and enterprise solution includes the ability to create a verified profile with info like address, description, and hours, plus “Features for helping manage customer chats like away messages for when businesses are not able to respond at the moment.”
When Facebook acquired WhatsApp for $19 billion in 2014, the companies said they wouldn’t put ads in WhatsApp because it would degrade the experience. But it also ditched its $1 annual subscription fee, leaving few monetization options beyond charging businesses for tools. The introduction of display ads and sponsored messages to Facebook Messenger may indicate a relaxation of WhatsApp’s stance against ads.
With over 1.3 billion monthly users and 1 billion daily users, WhatsApp has reached the massive scale necessary for it to earn significant revenue even from light advertising. Its Snapchat Stories clone WhatsApp Status now has 250 million daily users, and could host vertical video ads between friends’ content the way Instagram does. It could also insert display ads into the inbox like Facebook Messenger.
Comments
Post a Comment