Facebook Unlikely to introduce Whatsapp advertisements #Article

Facebook Unlikely to introduce Whatsapp advertisements #Article


Facebook seems to be backing off its WhatsApp monetization campaign.

The Wall Street Journal confirmed that Facebook is reconsidering its strategy to use WhatsApp as a revenue-generating tool: "

In recent months, WhatsApp dismantled a team that had been set up to find the best ways to integrate advertising into the app, according to people who are familiar with the problem. The work of the team was then removed from WhatsApp's code, the people said."

Although WhatsApp is home to 1.5 billion users, this ensures that the company will not contribute to Facebook's total revenue any time soon.

In 2014, Facebook purchased WhatsApp to expand its global influence and with the success of WhatsApp, it might have been used by Facebook to boost its overall revenue. WhatsApp raised about $20 million p.a. back then by charging $1 annual subscription fee in some parts of the world, but the company soon dropped the charge. This seemed to be a step in the direction of Facebook's monetization plans that included adding ads to WhatsApp.

It would have been difficult to introduce advertisements to WhatsApp, however, mostly because the primary focus of WhatsApp is to maintain user security with elements such as end-to-end encryption.

Debates over targeted advertisements have prompted WhatsApp founder to leave Facebook in 2018. WhatsApp seemed to be adding advertising shortly after his departure. And in November 2018 WhatsApp announced it would allow firms to purchase ads within the WhatsApp status space.

Nonetheless, several presentations have been made to potential advertisers now it seems that status advertisements are far from being implemented.

"For now, the emphasis is on apps[ that allow] companies to connect with consumers and coordinate those communications, one person who is familiar with the matter said," added WSJ.

It goes against the document outlined by Mark Zuckerberg in 2016, which described the three-step monetization process for Facebook. WhatsApp is currently stuck on Step 2 to' facilitate organic business activity on the app (free of charge)' and given the current situation, the app will not move to Step 3 anytime soon to' provide additional opportunities for companies seeking to expand their scope and influence.'

 This is great news for many users who seemed very disappointed after Facebook made the announcers. It is probably one of the very few popular social apps that don't accept advertising, after all.

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