Major changes for Whatsapp

Meta is making a major shift in how it monetises WhatsApp, its massively popular messaging platform, by introducing ads and subscription features in the coming months.

The change, announced on June 16 via a press release and further explained in a briefing with reporters, marks the first time WhatsApp will host paid promotions.

The company says the changes will primarily affect the app’s Updates tab, leaving one-on-one and group chats untouched.

“If you only use WhatsApp to chat with friends and loved ones, there will be no change to your experience at all,” parent company Meta said.

According to the company, ads won’t show up inside your chats. Instead, they will appear in the Updates tab, a feature launched in 2023 that lets users follow public Channels for news and announcements.

These channels, used by everyone from local governments to content creators, will now be able to pay for promoted placement, boosting visibility to WhatsApp’s 1.5 billion daily users.

Users may start to see ads in the Status section as well. These ads will function much like Instagram Stories: tap on one to begin a chat with the business.

Meta will also allow Channels to offer exclusive content via paid subscriptions.

While Channels will remain free to follow, admins can now offer premium posts to subscribers, providing a new way to monetise their content.

Meta said it will take a 10% commission on these subscriptions, though this fee will be waived until the end of 2025.

What data is being used

Meta said that it will use “limited user information” to target ads: things like your city or country, language, the Channels you follow, and how you engage with ads.

Critically, Meta said that personal messages, phone numbers, and group activity will not be used to tailor ads, and chats remain end-to-end encrypted.

Users connected to Facebook or Instagram accounts may see more personalised ads, though integration with Meta’s “Accounts Centre” is opt-in.

WhatsApp says users will have the ability to manage ad preferences, hide ads, or report them.

Why are ads being introduced?

Meta Vice President of Product Management Nikila Srinivasan said that the updates are designed to support businesses and organisations trying to grow on WhatsApp.

“People really want to chat to businesses on their own terms,” Srinivasan told reporters, “and they want to do it in a place where they already spend their time, which is on WhatsApp.”

This strategy aligns with Meta CEO Mark Zuckerberg’s vision of messaging becoming the company’s “next major pillar” of business.

While Facebook and Instagram have long generated the bulk of Meta’s revenue through advertising, WhatsApp has remained largely ad-free and difficult to monetise, despite its global reach.

WhatsApp was acquired by Meta (then Facebook) for $19 billion in 2014, but its founders, Brian Acton and Jan Koum, famously resisted turning the app into an ad platform.

In a 2012 blog post, they wrote: “We wanted to make something that wasn’t just another ad clearinghouse,” adding that ads were “insults to your intelligence.”

Both founders eventually left Meta, reportedly over disagreements related to monetisation and privacy.

What it means for users

According to Meta, the core WhatsApp experience, including private chats, group messages, and calls, will remain unaffected for now.

But the new changes hint at Meta’s broader ambitions: to turn WhatsApp into a full-fledged platform for commerce, content, and business engagement, similar to China’s WeChat.

That evolution is likely to benefit small businesses and creators who want to connect with their audience without relying on external platforms.

Still, some experts warn of potential backlash if users feel the app’s simplicity and privacy are being compromised.