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Whatsapp Won't Be Free In Time To Come. To Start Charging For Adds And More. by ifeccco: 2:37am On Sep 06, 2017 |
WhatsApp is gearing up to finally monetize its messaging
app by charging large enterprise businesses for tools to
better communicate with customers. WhatsApp will also
offer a free app to small-to-medium sized businesses,
though it hasn’t outlined the specific functionality of the
app. The enterprise solution will allow global companies “to
provide customers with useful notifications like flight times,
delivery confirmations, and other updates”.
“We do intend on charging businesses in the future,”
WhatsApp’s Chief Operating Officer Matt Idema told the
Wall Street Journal. “We don’t have the details of
monetization figured out.”
The company did write that it wants to facilitate “someone
placing an order with a local bakery or looking at new styles
from a clothing store” and “shopkeepers who use WhatsApp
to stay in touch with hundreds of customers from a single
smartphone”, plus offer “an easier way to respond to
messages.”
Perhaps WhatsApp could charge enterprises like “airlines, e-
commerce sites, and banks” to have multiple
representatives managing an account or sending high
volumes of messages. It could also charge for artificial
intelligence bot functionality or ecommerce transactions.
WhatsApp also officially announced its closed pilot program
for verifying business accounts with a green checkmark to
distinguish them from personal accounts and fakes.
WhatsApp began testing verified accounts for businesses a
week ago. Conversations with businesses are encrypted and
they can be blocked. Interestingly, if a business isn’t already
in your phone number contacts, its name will appear as
whatever they register themselves as instead of their
number. This could allow WhatsApp to create a business
search engine with optional sponsored results, or let
businesses cold-message people, possibly for a fee.
Alternatively, businesses on WhatsApp may need to be
contacted by a user first before they can respond with
organic or sponsored messages. That’s how Facebook
Messenger works, and it’s led to businesses buying “tap-
to-message” ads on Facebook’s News Feed to get people
to initiate conversations so the business can follow up with
sponsored messages. Not allowing cold-message ads
meshes with WhatsApp writing that it plans to “make it
easier for people to communicate with the businesses they
want to reach on WhatsApp”, emphasis
When Facebook acquired WhatsApp for $19 billion in 2014,
the companies said they wouldn’t put ads in WhatsApp
because it would degrade the experience. But it also ditched
its $1 annual subscription fee, leaving few monetization
options beyond charging businesses for tools. The
introduction of display ads and sponsored messages to
Facebook Messenger may indicate a relaxation of
WhatsApp’s stance against ads.
With over 1.3 billion monthly users and 1 billion daily users,
WhatsApp has reached the massive scale necessary for it to
earn significant revenue even from light advertising. Its
Snapchat Stories clone WhatsApp Status now has 250
million daily users, and could host vertical video ads
between friends’ content the way Instagram does. It could
also insert display ads into the inbox like Facebook
Messenger.
After being one of tech’s biggest startup acquisitions,
WhatsApp has tripled in size under relatively hands-off
management by Facebook. Now it’s time to earn its keep. |
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