Last Updated on September 1, 2023 by Robert C. Hoopes
WhatsApp, the widely-used messaging app owned by Meta (formerly Facebook), has been facing challenges when it comes to generating substantial revenue despite its massive user base of over 2 billion people. Unlike other Meta-owned platforms like Instagram, WhatsApp does not display ads, making it difficult to monetize. However, Meta sees potential in WhatsApp’s business offerings, particularly with the WhatsApp Business app that enables companies to communicate with their customers.
WhatsApp Business has been experiencing significant growth, boasting 200 million monthly active users and providing various pricing options for companies to engage with their customer base. In an effort to boost revenue, Meta has introduced ad products like “click-to-message,” diverting Instagram and Facebook users to WhatsApp for instant conversations, resulting in billions of dollars in revenue.
Meta is also exploring additional features and monetization opportunities for WhatsApp, one of which is Channels, a broadcast tool that could be utilized for subscription-based content or advertising. These endeavors aim to tap into the immense potential of the global business messaging industry, valued at a staggering $32 billion, by offering businesses more engaging and interactive communication options through WhatsApp.
However, despite its global popularity, WhatsApp has struggled to penetrate the US market, with only a 21.8% user penetration rate. In order to address this challenge, Meta intends to promote WhatsApp’s encryption features and data privacy as selling points in the US. Furthermore, Meta plans to incorporate advanced chatbots and generative AI into the platform to enhance user experience.
Experts, however, do not anticipate significant growth for WhatsApp in the US market in the near future. Although Meta is actively working towards monetizing WhatsApp and expanding its offerings, the company’s efforts to penetrate the US market may face limitations. Nonetheless, WhatsApp holds immense potential for businesses worldwide, and Meta is determined to explore all possibilities to maximize its revenue from the messaging app.