WhatsApp’s top head has denied a Financial Times report that claimed the Meta Platforms-owned messaging platform was exploring advertisements as a means to boost revenue.
False Claims and User Experience
The report suggested that teams at Meta were discussing whether to show ads in lists of conversations with contacts on the WhatsApp chat screen. However, WhatsApp head Will Cathcart refuted these claims, stating on social media platform X, “This @FT story is false. We aren’t doing this”.
Revenue Generation and User Base
WhatsApp has more than 2 billion monthly active users, but most of its revenue comes from its platform for small and medium-sized businesses which is used by about 200 million users every month. Visible Alpha estimates the messaging service generated $1.06 billion in sales last quarter, which represents a mere 3% of the social media company’s total revenue.
Future Growth Opportunities
Despite the denial of ad exploration, Zuckerberg said last year that WhatsApp and Messenger would drive the company’s next wave of sales growth, with business messaging “probably going to be the next major pillar” of Meta.
Analysts’ Perspective
Analysts believe that rolling out advertising on the messaging app could be a money maker but it would feel obtrusive and clunky. The speed at which the story has been refuted does suggest that Meta is aware how unpopular the move would be.
