WhatsApp launches ads: 'They've been figuring out how to monetize it without chasing users away'

The Money Show's Stephen Grootes chats to the editor of IT news website MyBroadband, Jan Vermeulen.

Do you rely on the free messaging service WhatsApp in your daily life?

Well, changes are coming as owner Meta (Facebook) introduces adverts and channel subscriptions.

MyBroadband editor Jan Vermeulen says it's the result of Meta desperately trying to figure out how to monetize WhatsApp without chasing people away.

'There are plenty of competitors waiting in the wings for Facebook to mess up and cause mass flight to other platforms', he says.

Vermeulen points out that the original creators of WhatsApp never meant for the service to be free, before they sold it to Facebook/Meta.

"They charged a nominal fee for using it, I think something like $1 a year, but they did offer it for fee in developing nations. That's why uptake in places like South Africa are so high."

Jan Vermeulen, Editor - MyBroadband

"After Facebook took over they made it free everywhere because they're in the business of building networks and then monetizing them later."

Jan Vermeulen, Editor - MyBroadband

Where the tech giant is treading carefully, Vermeulen goes on, is that it's trying to monetize the BUSINESS aspect of Whats App. (You can find the details on this WhatsApp blog post)

"Many people might not even have encountered this part of WhatsApp yet but whole storefronts are operated on it, in SA as well, and some money's also made off selling API access. So what they've announced is an advertising product around their channels feature and around statuses." 

Jan Vermeulen, Editor - MyBroadband

"I think users are only really going to care when these ads become active and intrusive, but if they're well implemented I think people will just carry on as normal."

Jan Vermeulen, Editor - MyBroadband

Scroll up to the audio player to listen to the conversation, and click here to read Vermeulen's detailed article