Wednesday, May 16, 2018

How does ad-free Whatsapp make money?

Whatsapp - messenger mobile application which holds 1.5 billion users worldwide today, whereas Facebook and Facebook messenger have 2.5 billion and 1.2 billion users. It was founded in 2009 and acquired by Facebook in 2014, and has a large number of users especially in India, Brazil, and Europe.

Unlike other text message app, Facebook Messenger, Kakao Talk, LINE, WeChat which having advertising space or timeline function that let business accounts to stream their posts, or paid features for users, Whatsapp is ads free application allowing uses to send text/video/image/file messages and make VoIP call.

Until 2016, it charged users $1 annual subscription fee, though it dismissed this $1 fee and became free app. Before its ban of annual fee, Whatsapp blog mentioned it doesn't sell ads since the app is not for big companies. ("Why we don't sell ads")

But then how can Whatsapp generate revenue?
In 2016, the company announce its launch of paid features for business accounts, that enable companies to communicate with their customers and send direct messages for marketing to enhance their customer engagement. The app also provide data analytics to companies, such as how many users read their messages. For large companies, the app supports e-Commerce function via text messages where customers can buy items by replying.

Whatsapp transformed its business model from almost-free app in order to expand its number of users, then by obtaining a big asset of clients, it can sell themselves as marketing platform.

The app may make changes under Facebook empire, so it is still getting lots of attention what's going on for ads free user friendly app.


Reference:
https://www.econsultancy.com/blog/69738-what-marketers-need-to-know-about-whatsapp-business
https://www.investopedia.com/articles/personal-finance/040915/how-whatsapp-makes-money.asp
https://www.feedough.com/how-does-whatsapp-make-money/

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