Update: Meta Platforms Inc. META has refuted a Financial Times report suggesting it was considering integrating ads into WhatsApp’s conversation list. WhatsApp chief, Will Cathard, clarified in his tweet that the “Financial Times story is false” and the company has no ongoing or planned efforts in that direction.
While analysts predict that Meta may monetize WhatsApp through ads, the company has so far monetized the platform through WhatsApp Business, which boasts 200 million monthly users.
In February, Meta revised WhatsApp Business’s pricing and messaging categories to boost revenue. On a previous earnings call, Zuckerberg highlighted a revenue of $1.5 billion from “click-to-WhatsApp” ads.
What Happened: On Thursday, Financial Times reported that Meta’s messaging app Whatsapp is exploring ads integration to boost revenue.
The proposed ad format would resemble the advertising integration found in Facebook Messenger, where ads appear adjacent to the main chat interface but not within the conversation threads themselves. the report noted.
There’s also speculation about whether WhatsApp may introduce a subscription fee option to offer an ad-free experience.
Both ideas have sparked internal debates, with concerns over potential user alienation and migration to alternative ad-free messaging apps, the report noted.
Why It’s Important: Meta has been working to bolster its advertising revenue, particularly in the wake of concerns over its investments in virtual reality and the “metaverse.” Earlier this month, it was reported that Meta is contemplating introducing paid versions for Facebook and Instagram for users within the EU.
Editor’s Note: This Story Has Been Updated To Include Official Statement From Will Cathard, Head Of Whatsapp.
Photo Courtesy: Shutterstock.com
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next: Child Safety Or Privacy? UK Holds Firm On Online Safety Bill Amid Big Tech Backlash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
