WhatsApp's Transformation - From Messaging Giant to Monetization Challenge

It's been nearly a decade since Mark Zuckerberg, the founder of Facebook, now rebranded Meta Platforms, Inc META, revealed the $19 billion deal to acquire the popular messaging app WhatsApp, known for its small-scale business operations.

Since then, WhatsApp has steadily expanded its user base, boasting over 2 billion people relying on the app for communication, as CNBC reports.

Unlike Instagram, WhatsApp does not feature advertisements, an essential aspect of Zuckerberg's primary business model.

Zuckerberg consistently highlights the app's potential and its ability to expand. During a recent earnings call, he emphasized the 200 million users of the WhatsApp Business app. 

Sellers can create, purchase, and publish ads for Facebook and Instagram directly from within the app. WhatsApp also took steps to boost its payments business on the platform.

Zuckerberg seeks to transform WhatsApp's massive user base into a significant source of revenue. 

The focus is on attracting more large businesses worldwide to utilize WhatsApp for customer interactions, with companies paying varying fees per conversation based on the chat type and country.

The actual value of WhatsApp to Meta remains uncertain, with estimates placing its revenue between $0.5 billion - $1 billion, a small fraction of Meta's total sales.

Meta has developed click-to-message ads that redirect users to initiate conversations on WhatsApp, generating billions in annual revenue. 

It is determined to expand WhatsApp's influence and capabilities with its "Channels" feature and the potential for new monetization methods.

Businesses in Brazil and India want to engage with their customers via WhatsApp.

Consumers in India use WhatsApp to book Uber Technologies, Inc UBER rides and get movie recommendations on their Netflix Inc NFLX accounts.

People use WhatsApp to chat with family and friends and stay updated on current affairs in Brazil, India, and Indonesia.

Price Action: META shares are down by 0.40% at $295.20 premarket on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.