WhatsApp to Begin Displaying Ads in "Updates" Tab, Shifting Monetization Strategy
WhatsApp, owned by Meta Platforms, announced it will start showing advertisements in its "Updates" tab, a space frequented by 1.5 billion daily users. Personal messages, calls, and statuses will remain end-to-end encrypted and ad-free. Ads will be targeted based on user information like location and followed channels, excluding personal chat content. This move, along with paid channel subscriptions and promotion options, marks a significant shift in WhatsApp's revenue generation strategy.
Unpacked:
WhatsApp ads will use information such as users’ city or country location, language preferences, followed channels, and interaction history with ads. Additionally, targeting may use data from connected Instagram and Facebook accounts, but will not include personal messages, calls, or groups in targeting algorithms.
Users cannot fully turn off ads, but since the new features are confined to the Updates tab, they can deactivate this tab in settings. Those using WhatsApp only for personal messaging will see no change in their ad experience.
Previously, WhatsApp’s monetization focused on business messaging services and limited Status ad trials. There were no display ads in chats or conversations. The new approach introduces broader advertising in the Updates tab, marking a significant shift from its historically ad-free model.
Users and regulators have closely watched WhatsApp’s monetization moves due to the app’s reputation for privacy. Concerns focus on maintaining end-to-end encryption and not compromising the privacy of personal messages, which WhatsApp has emphasized will remain unchanged by the new ads.