WhatsApp introducing advertising is a potentially lucrative but risky move
- Written by Yusuf Oc, Associate Professor of Digital Marketing and AI, City St George's, University of London
The decision to start advertising on WhatsApp[1] marks a major shift for a private messaging service that has long positioned itself as being different from other social media platforms.
Back when Meta (then known simply as Facebook) bought it in 2014 for US$19 billion[2], WhatsApp had an unusual and simple business model. Users were required to pay a very small annual fee (US$1 (£0.69)) in return for a minimalist, ad-free experience.
That fee was scrapped in 2016[3], and WhatsApp became fully free. But it always had the potential to eventually align with Meta’s wider operation[4] of offering free services for users to connect to others – while making money from targeted advertising.
Since then, WhatsApp has taken slow, deliberate steps toward making money. These strategies relied on income from businesses[5], which paid to use WhatsApp as a way of communicating with their customers.
By 2024, over 700 million businesses[6] were using a separate version of the app called WhatsApp Business for customer service replies or promotional updates. Brands including Zara and Adidas use WhatsApp to send order updates, respond to queries and offer personalised shopping assistance.
But this is still a limited revenue stream compared to the massive ad-based profits Meta generates elsewhere. Estimates suggest[7] that WhatsApp brings in only a tiny fraction of Meta’s US$160 billion annual revenue[8], most of which comes from Facebook and Instagram.
So perhaps it’s no surprise that the company is now turning to WhatsApp’s nearly 3 billion users across the world. After all, the decision mirrors a broader industry trend, with other apps like Snapchat[9] and Telegram[10] exploring monetisation more actively.
Yet WhatsApp’s move still feels different.
The platform’s identity is deeply tied to privacy, simplicity and intimacy. It is not a social media feed, it’s a communication tool. And a tool which many people use to share personal or sensitive information.
And even if adverts are not based on message content, they may still end up being quite personal to users because of all the other data Meta has access to through Facebook and Instagram. Information about who you talk to, and how often, is still accessible – and can be used for targeted advertising.
So if Meta already knows your favourite sports team or holiday destination for example, it may show ads related to this information. If you’ve been chatting with friends on Whatsapp about a recent fixture or planned trip, it may feel strange if you then start seeing ads on those themes.
WhatsApp faced a backlash in 2021[11] over a privacy policy update that suggested more data sharing with Facebook. The company proceeded with the update, but millions of users downloaded alternatives like Signal and Telegram in protest.
And even if research suggests that younger generations are more comfortable with personalised content[12], trust is still a fragile thing – which can quickly erode[13]. If users perceive that WhatsApp no longer protects their privacy or becomes too commercial, many might switch to rivals, at no cost, especially if their social circles are already active on rival platforms.
A separate concern is that as ads appear more frequently in private communication spaces, there’s a greater risk of users, especially young people, encountering inappropriate or manipulative content.
This is especially risky in spaces where people feel psychologically safe. Whereas users are typically wary of TV advertising[15], their guards might be down on platforms[16] where they exchange intimate messages with loved ones.
When it comes to children, parents and schools have a role to play. Rather than advocating for bans or strict age controls, which are difficult to enforce and often ignored, digital literacy needs to be embedded into education.
Teenagers should learn how social media and messaging apps work, how data is used, how to identify manipulative content and how to manage screen time and exposure.
Too often, adults assume that younger users are “digital natives” and tech savvy – but in reality, many are vulnerable to psychological nudges and online targeting. Research suggests that empowering them with the tools to recognise these tactics is far more sustainable[17] than trying to shield them completely.
Those tactics will soon be visible on what has been, for a long time, a simple messaging service. WhatsApp’s introduction of ads is not just a business decision, it’s a cultural shift. It reflects some economic logic, but also challenges the assumptions many users have about their private digital spaces.
If done carefully, WhatsApp could strike that fine balance between making a profit and maintaining trust. But if users sense their private sphere is being commodified, the backlash may be swift.
Because for platforms like WhatsApp, success hinges not just on what they do, but how they are perceived to do it.
References
- ^ advertising on WhatsApp (www.cnbc.com)
- ^ it in 2014 for US$19 billion (about.fb.com)
- ^ scrapped in 2016 (www.bbc.co.uk)
- ^ with Meta’s wider operation (www.wired.com)
- ^ income from businesses (www.businessofapps.com)
- ^ over 700 million businesses (www.statista.com)
- ^ Estimates suggest (prioridata.com)
- ^ Meta’s US$160 billion annual revenue (investor.atmeta.com)
- ^ Snapchat (help.snapchat.com)
- ^ Telegram (telegram.org)
- ^ backlash in 2021 (www.forbes.com)
- ^ more comfortable with personalised content (onlinelibrary.wiley.com)
- ^ quickly erode (heinonline.org)
- ^ BigTunaOnline/Shutterstock (www.shutterstock.com)
- ^ TV advertising (doi.org)
- ^ platforms (www.emerald.com)
- ^ far more sustainable (doi.org)
