WhatsApp Will Now Show Ads in the Updates Tab - But What's in it For Meta?
Ads could be annoying for users, but great for businesses.
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WhatsApp starts showing ads in its Updates tab, a dedicated space for Status and Channels used by more than 1.5 billion people daily. Ads will not appear in private chats or calls, which remain end-to-end encrypted and unaffected.
Meta will personalize ads using basic info like your location, language, engagement patterns, and followed Channels. Only if you’ve linked WhatsApp with your Meta Accounts Center will data from Facebook or Instagram be used. Meta stresses it won’t scan message content or voice calls for ad targeting.
Beyond ads, WhatsApp now supports paid subscriptions for Channels, offering exclusive content from creators or brands. Additionally, businesses can promote their Channels within the directory. Meta expects this trio of monetization features, ads, subscriptions, and promoted Channels, to open new revenue sources, especially with WhatsApp recently reaching nearly 3 billion monthly users.
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How will WhatsApp Ads help Meta?
Industry analysts predict the move could add over $10 billion annually to Meta’s ad revenue by 2028, based on projections per user and engagement growth. Stock analysts responded positively as Meta’s shares rose about 3 percent after the announcement.
This shift ends WhatsApp’s longstanding policy against ads, initially envisioned by founders Jan Koum and Brian Acton. Internal resistance to ad integration contributed to their departure in 2018. Yet Meta made a strategic choice. With slowing growth in Facebook and Instagram ads, WhatsApp offers fresh monetization potential.
Privacy advocates express concern. Critics fear even limited targeting could erode user trust. Some are considering alternatives like Signal. Meta defends its decision: the Updates tab sits outside core messaging, users can accept the new policy before ads appear, and all private communications remain encrypted.
WhatsApp plans a staged global rollout over the coming months, starting now. You can read more about it in the New York Times report here.
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