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WhatsApp To Launch Ad Serving In 2019
05 August 2018 | 0 comments | Posted by Che Kohler in nichemarket Advice
I've been a long-time fan and user of WhatsApp and ever since it rose into prominence I've been following the story closely. Instant messaging (IMs) was by no means a new concept when WhatsApp came around, but its ability to act as a native SMS replacement was a narrative anyone could understand.
The history of WhatsApp
WhatsApp was founded back in 2009 by Brian Acton and Jan Koum, both former employees of Yahoo! At the time Yahoo! were king of online ads, something Acton and Koum were sick off and did not want to bring it over into their new platform for the people.How WhatsApp made money?
WhatsApp had a simple subscription model that charged users a set annual fee. I speak under correction, but it was something like $1 a year, the subscription-only an applied to certain mature markets like the US and UK. These funds were then used to scale the business and maintain its free status in developing nations like India, South Africa and the like.Why the sudden change?
Five years later, the party was over, and it was a promise WhatsApp could no longer keep. Pressure from daddy Facebook has finally forced WhatsApp to monetise its users and justify the US$20 Billion spent on the platform.How will WhatsApp ads work?
WhatsApp Status launched in February 2017 and had quickly amassed over 450 million daily users — 30% of the app's 1.5 billion monthly users. WhatsApp Status has the largest regular audience of any Facebook-owned property with a Stories feature, beating out Instagram Stories' 400 million daily users.Hurdles for WhatsApp ads
Communication is the first and foremost function of WhatsApp, not media consumption. People use WhatsApp for text messaging, and making voice and video calls, not as a destination to find engaging multimedia, the mindset for commerce in any kind isn't as prevalent on WhatsApp as it is on Instagram or Facebook.Alternative monetisation tactics
WhatsApp now has to pay back the piper, and this could see an opportunity for other instant messaging apps to jump in and snap up disillusioned consumers of whom there will be many. Going back on your key promise of never monetising your user base is a tough pill to swallow and while it may not matter to WhatsApp some of its users will be migrating to other alternatives.Contact us
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