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Meta Denies Whatsapp Denies Its Exploring Advertisement Options on Subscription Basis

Synopsis-

“Whatsapp, a Meta-owned message and video calling platform denies that it is exploring adverts in order to boost revenue.”

Whatsapp, a Meta-owned message and video calling platform denies that it is exploring adverts in order to boost revenue. The news becomes trending as some analysts find the app as an untapped growth opportunity even after a decade.

Whatsapp Ads- Doubtful for As of Now (Meta Owned Whats App)

As per resources, teams inside the company discussing should ads be shown in lists of conversations with contracts on the chat screen of Whatsapp, but discussion is still in process.

Meta was also thinking of charging a subscription fee from the subscribers to let them use the app ad-free, citing people familiar with the matter.

Why do analysts consider WhatsApp a perfect platform for advertisement?

Visible Alpha, a financial data company, reveals Whatsapp sees 2 billion active users every month, but the app generates most of its revenue from small and medium-scale businesses that are used by around 200 million users monthly. 

Meta does not reveal revenue generated by Whatsapp, but the financial data firm predicts. The revenue could be around $1.06 billion in sales last quarter, which represents 3% of Meta’s total revenue.

Danni Hewson, Analysts, AJ Bell, said, “Rolling out advertising on the messaging app could be a money maker but it would feel obtrusive and clunky. The speed at which the story has been refuted does suggest that Meta is aware of how unpopular the move would be … it does look like a non-starter, for now,”.

The next wave of the company’s sales growth, according to Zuckerberg last year, would be driven by WhatsApp and Messenger, with corporate messaging “probably going to be the next major pillar” of Meta. Any decision to put advertisements on WhatsApp may not be well-received by consumers.

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