Facebook Unlikely to introduce Whatsapp advertisements #Article

Facebook Unlikely to introduce Whatsapp advertisements #Article

Facebook seems to back the plan to monetize WhatsApp.

The Wall Street Journal reported that Facebook is reconsidering its strategy of using WhatsApp as a revenue-generating tool:

"In recent months, WhatsApp has disbanded a team that had been set up to find the best ways to incorporate ads into the app, according to people who are familiar with the issue.

Facebook acquired WhatsApp in 2014 to extend its global reach and with WhatsApp's popularity, Facebook may have used it to improve its overall revenue. WhatsApp earned about $20 m p.a. Back then a $1 annual subscription fee was paid in certain parts of the world, but the company quickly lowered the rate. This appeared to be a step towards Facebook's monetization plans which included adding ads to WhatsApp.

WhatsApp's implementation of ads would have been difficult, however, mainly because WhatsApp's primary objective is to protect user security with elements such as end-to-end encryption.

Debates over targeted advertising prompted WhatsApp founder to leave Facebook in 2018. Shortly after his departure WhatsApp seemed to add ads. And in November 2018 WhatsApp announced it will allow companies to purchase advertising inside the WhatsApp status region.

Nevertheless, there have been many presentations to potential marketers and it seems that ranking ads are far from being introduced.

"Right now, the emphasis is on apps[that allow] businesses to communicate with customers and manage those communications, said one person who is familiar with the matter," WSJ added.

It goes against the document outlined in 2016 by Mark Zuckerberg which described Facebook's three-step monetization process. WhatsApp is actually stuck on Step 2 to promote organic business operation on the app (free of charge)' and despite the current situation, the app will not move to Step 3 any time soon to offer additional incentives for businesses looking to extend their reach and impact.'

It is excellent news for many users who seemed very frustrated after Facebook made the announcers. It's probably one of the very few common networking apps that does, after all, not embrace ads.

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