Meta makes money from WhatsApp through different revenue streams. The first is through the WhatsApp Business subscription, which provides advanced communication features for medium and large businesses.
Integration with Facebook Ads is also an important source of income for the messaging app. In addition, the data obtained from the high volume of active users helps Meta to have an extensive database that can be used in other services provided by the big tech company.
Learn more details about how WhatsApp makes money and other common questions.
1. WhatsApp Business is one of Meta’s sources of revenue
Meta makes money from WhatsApp through WhatsApp Business subscriptions. While the service is available for free to small businesses, medium and large businesses pay to use the API .
Subscription plans offer advanced features and customized solutions to streamline customer communications. These include a business account page, messaging automation, multi-agent support, and customer segmentation.
Revenue generated from WhatsApp Business is used to cover the messenger’s operating costs. In addition, the value of subscriptions allows Meta to invest in new technologies and features to improve the user experience.
2. WhatsApp makes money from ads on Facebook and Instagram
Another source of revenue for WhatsApp is its integration with Facebook Ads. Meta’s digital advertising platform helps businesses on WhatsApp Business reach their target audience by creating targeted ads on Facebook and Instagram.
For example, ads with the “Chat on WhatsApp” button encourage customers to start a chat with the company directly through the messaging app. In addition to creating more effective communication, this marketing tool can increase engagement and sales.
3. WhatsApp’s biggest gain is the number of active users on the app.
The large number of active WhatsApp users provides Meta with a wealth of valuable data. This information is essential for the big tech company to invest in improvements to the messaging app and other platforms.
Although WhatsApp messages are end-to-end encrypted, metadata such as usage frequency and contact list reveal users’ behavioral patterns. This is valuable material for the company’s business.
Meta uses metadata to improve ad targeting on Facebook Ads. It also provides a personalized user experience on other big tech platforms, such as Facebook and Instagram.
Why doesn’t WhatsApp make money from in-app ads?
WhatsApp has chosen not to monetize with ads to preserve the user experience, keeping the app as a simple and intuitive communication space. Including ads could overload the interface and drive audiences away from the platform.
Initially, WhatsApp experimented with charging users an annual subscription fee of $1. However, the messaging app became completely free in 2016 in an attempt to reach a larger user base.
It is worth mentioning that WhatsApp representatives have already discussed the possibility of displaying ads in the “Updates” tab among the Statuses shared by users. However, Meta should focus on other ways to monetize the messaging app.
Does WhatsApp make money from messages sent by users?
No, WhatsApp does not make money from messages sent by regular users. The messaging app is free and its main source of revenue comes from WhatsApp Business subscriptions and Facebook Ads.
Does WhatsApp sell user data to make money?
No, WhatsApp does not sell users’ personal data to third-party companies. However, information collected by the messaging app may be used to improve Meta’s services, such as Facebook Ads targeting.
Does transferring money via WhatsApp Pay generate revenue for WhatsApp?
Yes, transfers made through WhatsApp Pay can generate revenue for WhatsApp. The tool is free for regular users, but companies that subscribe to WhatsApp Business may pay a fee when receiving money transfers in some countries.
