WhatsApp: Chasing More Money
January 1, 2025
Meta aims to make WhatsApp indispensable to businesses around the world. The app is currently responsible for just a fraction of the company’s revenue, but Zuckerberg seems to have high hopes for the messaging platform. Rest of World‘s thorough piece, “How WhatsApp Ate the World,” describes the plan. Writer Issie Lapowsky details the app’s evolution since Facebook (now Meta) bought it and examines where the company plans to take it from here. We learn:
“WhatsApp initially achieved that global dominance in large part by doing just one thing very well: enabling cheap, private, and reliable messaging on almost any phone, almost anywhere in the world. But in the decade since Meta acquired WhatsApp for an eye-watering $22 billion in 2014, the app has been transformed from a narrowly focused utilitarian tool into a sort of ‘everything app.’ In countries like India, Brazil, Mexico, and Indonesia, WhatsApp is now also a place for scheduling doctor’s appointments and conducting real estate deals — and buying Sabharwal’s ceramic ducks. In Brazil, the beauty juggernaut L’Oréal now makes an average of 25% of its online direct-to-consumer sales on WhatsApp. The shift has been driven, of course, by money. WhatsApp has never been much of a moneymaker. While Meta makes billions off mining people’s personal data to sell more ads, WhatsApp is an encrypted app, whose founders once very publicly swore off advertising altogether. Lately, however, WhatsApp has been aggressively luring big businesses to its suite of paid messaging products for businesses, and openly flirting with the possibility of introducing ads in the not-too-distant future.”
Because of course it is. Meta insists it respects WhatsApp’s original mission of privacy, pledging to keep its end-to-end encryption intact. The company has even added privacy tools that remind us of the old Telegram: disappearing messages, encrypting backups, and shielding IP addresses in calls. Is Meta attempting to move forward by stepping into the past? Even with these privacy promises, Lapowsky notes:
“And yet, with each new revenue-boosting feature, WhatsApp has added a little asterisk to its core privacy promises, according to Nathalie Maréchal, co-director of the privacy and data program at the Center for Democracy & Technology in Washington, D.C. ‘It’s not necessarily that those asterisks are illegitimate. It’s that they’re complicated,’ she told Rest of World, ‘and many users are either not going to take the time, or aren’t going to prioritize, fully understanding it.'”
Ah, details. Another key part of Zuck’s vision is no surprise—generative AI. Meta’s chatbot is now a standard part of the app’s search bar, while a customer-service version and AI marketing tools are now available to businesses. Will all these changes turn WhatsApp into the moneymaker the tech mogul envisions?
Cynthia Murrell, January 1, 2025
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