Facebook bought WhatsApp in 2014 for 19,000 million dollars and, so far, the company has not revealed how it is making benefits from the instant messaging app, which is free to use, but … how does Facebook make money from WhatsApp?
Facebook has made WhatsApp a communication channel between customers and advertisers
Mark Zuckerberg explained during the presentation of the results of the company in the first quarter of the year – where he also highlighted that Facebook already has 2.85 billion users monthly – which, at the moment, is using WhatsApp to boost advertising and sales on Facebook and Instagram.
Until now, in addition to allowing private users to communicate for free, Facebook has focused on making the messaging app a means of communication between companies and their potential clients. In this sense, since 2017 it allows companies to buy ads on Facebook and Instagram that have a button through which customers can put in contact with the advertiser via WhatsApp.
As detailed by Zuckerberg, there are already a million companies around the world that have contracted this advertising with the option of contacting the customer through the messaging app, which, in a way, is a way of obtaining income using WhatsApp ( although these come through the purchase of ads on Facebook and Instagram). Anyway, Facebook doesn’t you have detailed what percentage of your income they come from WhatsApp click ads.
But Facebook has more plans to monetize WhatsApp, a tool that will integrate into the new stores which he launched last summer for Facebook and Instagram. When WhatsApp is included in them, users will be able to ask the company directly through WhatsApp any questions about a product they are buying through these stores, as if they were asking a clerk of a traditional business: ask for sizes, time shipping, payment methods … or whatever they need. By offering that direct customer service, they will also increase revenue through WhatsApp, albeit indirectly.
Directly, WhatsApp is preparing to show advertising in the States, something that was announced that would occur throughout 2020 but that is expected to end up happening this year. By placing advertising on your ephemeral content – in the same way that ads are displayed in Instagram Stories- WhatsApp would begin to obtain income in a direct way.
On the other hand, Facebook has a roadmap to get money through WhatsApp Business, the specific app for businesses that offers customer service. Most of the features it offers are free, but the company prepares a series of payment tools that will allow companies to contact users more directly and with more possibilities. Here is another source of additional income.
Facebook allows companies that use WhatsApp Business create product catalogs, where they show what they sell and can even manage offers and promotions. In addition, it works to allow that from the instant messaging app itself you can buy ads for these products, without having to go to Facebook to place the advertising. Those ads can be seen on both Facebook and Instagram. Possibly, when advertising is launched in the States, it can also be contracted from there.