How Does WhatsApp Make Money [Revenue Model 2023]

how does whatsapp make money

Do you guys know How Does WhatsApp Make Money Today? In 2014, Facebook announced the purchase of WhatsApp for 19 19,000 million, one of the largest acquisitions in the history of companies in the software universe today.

From that moment on, users started asking why Facebook is spending so much money on a free service. Even today there are many WhatsApp users who still do not understand how this messaging, calling, and video calling platform manages to make money and here we are going to explain what is behind this business.

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Is it true that WhatsApp makes money from our data?

Remember that in the past, before Zuckerberg got his hands on it, WhatsApp used to charge a small amount of money from its users. The first year of use was free but we had to pay 99 cents per dollar for the second. A small amount for one person but millionaires are considering adopting this application.

Then the accumulation system stopped, but the company continues to make a profit. The general opinion is that WhatsApp is not really free. Although this company has not fully explained the business model that makes it profitable, there is a lot of talk about the fact that you do not pay to use this application, but You pay with the data you provide to WhatsApp. Private life, as with most social networks (e.g. Facebook and Twitter), is a matter of Internet platforms or messaging and mail applications. But this widely held idea is not so clear

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To begin with, WhatsApp does not offer you advertisements like Facebook does, which uses the data to create user profiles and create targeted advertising so that someone can find information about products and services that Can be very useful for Also, according to the Menlo Park firm, WhatsApp isn’t really as profitable as it used to be, despite the fact that by 2020 it reached 2,000 million users worldwide.

However, it should be noted that during the acquisition process, when obtaining the permits from the European Commission, Facebook had assured that they had no ability to link their users’ WhatsApp and Facebook accounts. There is no such thing as trust and automation. However, after the operation ended, they announced that they would begin compiling the data, which led the European Union to accuse them of providing misleading information.

How much information does WhatsApp handle?

However, the issue is not clear about what the company does with all the information it has about its customers: WhatsApp prides itself on end-to-end encryption and protects the privacy of the messages we send to our contacts. What he doesn’t talk about much is the metadata he accesses and the information that Facebook handles with him, which is one of the biggest controversies over messaging applications in recent times. We’re talking about new WhatsApp usage terms that will launch in May and will be analyzed later.

A few months ago, Apple began launching its own private labels (privacy labels) in the App Store and used them to “stick” the data collected through applications. In the case of WhatsApp, it is clarified how this tool collects contacts from our mobile, and commercial data when we use Facebook services or IP which can be used to give us some accurate geographical identification. ۔

And remember that by using this messaging tool you give it these permissions: microphone, storage, contacts, photos/media/files, phone, location, identity, wifi connection information, application and device history, SMS, Camera, and device ID, and call information. Neither more nor less. This is why it is often said that “if a product is free, then that product is you”.

As Bloomberg reports, although the app now earns relatively little money, Facebook sees private messaging as the foundation of its next big business. Needless to say, this is one of its biggest challenges, at least because of the no-confidence laws it faces in many countries where it operates.

WhatsApp, Instagram, and Facebook Shop as a perfect complement to Windows

While it’s not clear if our data has been monetized or not, what we do know is that WhatsApp is a “cash register” (literally Matt Idema, director of operations of the brand) or a channel created for communication between users. Is taking shape. And sellers, after seeing interesting products or services on the user’s Facebook or Instagram.

For his part, Mark Zuckerberg sees the potential to turn this user base (reportedly over 2,000 million worldwide) into a profit hub by attracting retailers to sell goods and services within WhatsApp. , Or use the application to address customer support issues. Otherwise, an email or phone call will be required.

For Facebook, a company that derives 99% of its revenue from advertising (in fact, many people say it’s more of a marketing tool than a social network), WhatsApp is one of the ways to diversify its business. Provides an opportunity for a brand and user to contact their client after receiving an advertisement on Facebook or Instagram. “Instagram and Facebook are the storefront,” said Matt Idema, CEO of WhatsApp, and “WhatsApp is a cash register.”

In fact, it already happened today. The company has the WhatsApp Business API, which has a variety of payment options to facilitate online usage. The move aims to save time, in addition to providing another sales channel, such as Instagram, where products can be tagged with price and name in photos of the company’s accounts. Through professional accounts, many companies were in a position to repeatedly send product lists and prices at the request of customers. Now, this will end because users will be able to access the catalog from the application itself.

In addition to this catalog within WhatsApp, now that a brand offers you something in the Instagram story, they can link you to their WhatsApp chat with which you can interact with that brand so that Make purchases up close (because you can ask exactly what you want within the platform).

How does WhatsApp make money: Conclusion?

In addition, if you, as a user, interact with companies that use Facebook’s secure web hosting services, the company will be able to “see the information you are sharing with them and use it as part of their marketing.” May be used for other purposes, including the use of advertisements on Facebook. “. In these cases, we can see the business advertisement on Facebook with a button that allows you to send them a message on WhatsApp.

By James Kandu

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