WhatsApp to start showing Instagram-like ads soon, says chats won't be affected for now

In a bid to make WhatsApp more profitable, Meta, the Mark Zuckerberg-owned social media conglomerate is planning to start showing ads within the mobile and desktop app.

In a recent interview with Brazilian publication Folha de S. Paulo, Will Cathcart, the head of WhatsApp, shed light on the platform’s evolving financial strategies following its acquisition by Meta.

Cathcart clarified that, despite Meta’s ownership, WhatsApp would refrain from displaying ads in user inboxes or chats, emphasizing that users do not want to be inundated with advertising in those spaces.

However, Cathcart did leave the door open for potential advertisements in other areas of the app, mentioning Public Channels and Status (WhatsApp’s equivalent of Stories) as potential ad placements. He also suggested alternative monetisation methods, such as charging users to join channels, similar to what Telegram does.

While refraining from ad placements in conversations, WhatsApp has been exploring ways to generate revenue beyond advertising.

One of its most significant income sources is the WhatsApp Business API, which provides specialised tools for businesses of all sizes, contributing around $10 billion annually, according to Cathcart.

This revenue stream demonstrates WhatsApp’s capacity to sustain its financial health without relying on in-chat advertisements. However, experts have suggested that sooner or later, WhatsApp will start serving ads within chats, once their WhatsApp Business venture hits saturation point.

The idea of introducing ads to WhatsApp is not entirely new. In 2018, the platform experimented with displaying ads inside Status. However, these plans were temporarily shelved due to concerns about user reactions and privacy issues.

Cathcart also revealed that WhatsApp enjoys its greatest popularity in India, Indonesia, and Brazil. He underscored the company’s unwavering commitment to user privacy and unveiled plans to enable users to create private channels for internal communication in various settings, including businesses and schools.

In the broader interview, Cathcart delved into WhatsApp’s impact on political campaigns and the company’s investments in AI-based features, underlining the app’s ongoing development and evolution under the Meta umbrella.