Facebook Might Start Monetising WhatsApp Using Ads: Analysts

Jan Koum’s news about his departure from WhatsApp left everybody stunned with the shocking revelation. However, with his departure, there are many people who are speculating about the reasons why Jan had to leave the company. There are also general concerns for the future of WhatsApp. There is also the article by Washington Post on the founder’s departure which talked at length about the clash of thoughts between Jan Koum and Mark Zuckerberg. While the original founder of WhatsApp wanted to save and protect user privacy by keeping it on the highest pedestal, Facebook wanted a more open platform where businesses could utilise WhatsApp data. After this news, many analysts are saying that Jan’s departure from the company can trigger the release of ads on WhatsApp.

WhatsApp

A Barclays analyst outlined the following about this new info “We normally wouldn’t publish a note on an executive departure, but we think Jan Koum’s departure as potentially significant implications. We’ve been told by many of our checks over the last few years that once Jan leaves, that’s when the ads show up,” Money Control reported that this new tip came from the screenshot of the note which was shared on Twitter by Amit Ranjan who is the co-founder of SlideShare.

The analyst went on to say about the WA report “There has been a tension between the WhatsApp founding team and Facebook around the future of messaging and pace of monetisation.”

If and when Facebook decides to monetise the WhatsApp platform, analysts believe that there could be a substantial rise in the number of ad impressions that Facebook is making right now. The analysts also presented a scenario where one ad per daily active user would mean a three percent rise in the total impressions created by Facebook. However, it is obvious that in reality, the number of ads could be higher.

While Koum resorted to Facebook to write a post about the whole incident, people expected a solid reason from the co-founder about leaving the company. That sadly did not happen, instead, Jan Koum wrote “I’m leaving at a time when people are using WhatsApp in more ways than I could have imagined. The team is stronger than ever, and it’ll continue to do amazing things.”

There was also a reply to the above-mentioned post from Facebook CEO Mark Zuckerberg, where he said “I will miss working so closely with you. I’m grateful for everything you’ve done to help connect the world, and for everything you’ve taught me, including about encryption and its ability to take power from centralised systems and put it back in people’s hands. Those values will always be at the heart of WhatsApp.”

It will be interesting to see how the future of WhatsApp folds under Facebook as it’s now fully owned by the latter.

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29 Comments on "Facebook Might Start Monetising WhatsApp Using Ads: Analysts"

 

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Fazal
May 5, 2018 12:36 pm 12:36 PM

Well in India/Asia/africa/Europe/South America SMS is charged. That’s why people use free services like WhatsApp. If like USA SMS & MMS is bundled with monthly plan, then iMessage or any android equivalent messaging service which depends only on internet to deliver & not an app like WhatsApp, will become defacto here too. Nothing in this world is free & somebody has to pay server bills. Facebook on the contrary has a lot of money & they can afford to keep providing services, but they didn’t pay 19 billion to not earn money right?

dragonmonk
May 5, 2018 8:07 pm 8:07 PM

@fazal That’s a weird argument. iMessage and WhatsApp are both messaging apps that work over internet. So, what does absence or presence of SMS/MMS with monthly plan have anything to do with iMessage or WhatsApp becoming de facto messaging service? You are confusing things my friend.

Chinmay
May 5, 2018 6:29 pm 6:29 PM

You are living in the past, pre 2015 era. There are no charges for SMS in 2018 in India.

AU(Airtel User)
May 6, 2018 12:40 am 12:40 AM

AVOID have iMessage Facetime activation charges whereas Jio doesnt charges so Jio is the real free sms service.

dragonmonk
May 6, 2018 4:28 am 4:28 AM

What nonsense! You are talking about saving a 5 rupee charge for sending an international message to Apple servers in UK to activate FaceTime and iMessage. Do you think a person owning iPhone cares about one time charge of 5 rupees?

Girish Gowda | BengaLuru
May 5, 2018 11:43 pm 11:43 PM

Except on Jio, others charge for SMS except in a few plans.

dragonmonk
May 5, 2018 8:04 pm 8:04 PM

@chinmay Nope. Not true.

dragonmonk
May 5, 2018 8:00 am 8:00 AM

If you are looking for alternatives, I’d strongly recommend ‘signal’. End-to-end encrypted, access to address book is optional (you can send a message by typing in any phone number – unlike WhatsApp). Open source. Approved by Edward Snowden and Bruce Schneier. signal dot org.

Anonymous
May 5, 2018 11:38 pm 11:38 PM

For Your Info Whatsapp Partnered With Open Whisper System (Signal) for it’s End-to -End Encryption for more info visit Whatsapp website & click on security >>>>

dragonmonk
May 7, 2018 2:24 am 2:24 AM

@Anonymous Yes, I’m aware of it. See my other comment below.

Arena
May 5, 2018 7:01 am 7:01 AM
If that’s the way as WhatsApp is integrated with UPI, WhatsApp needs to pay for users wrt usage and share of profits they could gain. Only then privacy and other negative crap go away. Else every gun is at WhatsApp. Facebook needs to do what YouTube does. Here at least 55% of advertising profit should be given to users. Then WhatsApp can sustain, its worst competition is telegram which is far more better than WhatsApp. I suggest users to try telegram. Seed the telegram base now, it will help many in future bcz everyone will have account on telegram…so it… Read more »
Girish Gowda | BengaLuru
May 5, 2018 11:44 pm 11:44 PM

Telegram is awesome. Too bad not many know about it.

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