by Team AllYourVideogames | Aug 6, 2022 | WhatsApp |
Do you know how whatsapp makes money, especially after being acquired by Facebook? In 2022, the company paid around $19 billion to acquire the messaging program.
However, WhatsApp is a free app that has no ads. And many people and investors wonder how Facebook makes money from one of the most used apps in the world.
In April 2022, Facebook released some data and details that reveal how WhatsApp is being used by the company to be able to bring a financial return, in addition to boosting sales and ads on other platforms, such as Instagram and Facebook itself.
It is worth mentioning that Instagram also belongs to Facebook. All information and values in the text were taken from CNN Business and are in accordance with the report released by Facebook itself.
You can also check out the original article with the data on how WhatsApp makes money.
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How WhatsApp makes money?
One of the main groups that use WhatsApp are companies that communicate with their customers and carry out transactions through the application.
As of 2022, this group can acquire ads that include a button and that allow users who click on it to be taken directly into a WhatsApp conversation with the advertising company.
Among the information that reveals how WhatsApp makes money, it was confirmed by Mark Zuckerberg himself, CEO of the company Facebook, that more than a million companies make use of the access button to WhatsApp.
As the company released the chat app usage and earnings details in Q2022 XNUMX, the CEO also revealed other projects such as the new feature that will be implemented and that should further contribute to how WhatsApp makes money.
In WhatsApp Business, which is the business version of the app, the function of creating ads directly in WhatsApp Business will be released, an option that was not available for use before.
The goal is to make the ad buying process even easier for the customer and company.
In this same announcement about the first quarter of the year, Facebook also revealed that quarterly advertising sales reached $25,4 billion. Thus, there was an increase of 46% compared to sales for the same period in 2022.
Earnings were $3,30 per share, which is a 93% year-over-year increase on revenue of nearly $26,2 billion.
It was projected by Wall Street experts that this revenue figure would be $23,7 billion, that is, the projections were exceeded.
The big profits did a lot of good for Facebook shares which rose nearly 6% in the first quarter of 2022.
Despite the excellent numbers, it is important to note that during the first quarter of 2022, Facebook experienced several problems. Due to the riot on Capitol Hill on January 6, the company began to be asked about causing disinformation from users.
In addition, he also faced public concerns about his privacy, as various information from users of the social network was leaked on a hacker website.
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How WhatsApp makes money: New feature that makes profits
This new feature for WhatsApp Business makes use of catalogs, that is, it is as if they were virtual storefronts in a menu that is located on the company's profile and that allows the customer to check all available offers.
But it's not just that. Corporate users who have access to WhatsApp Business will have the ability to select an item from this catalog and automatically turn it into an ad for Instagram or Facebook.
The same button that directs people to the WhatsApp conversation doesn't require much from the advertiser, and is also automatically included in the ad. Before this new feature, it was necessary to create the ad directly on other social networks.
Zuckerberg also says that the company's main goal is to create a full-featured, full-featured commerce platform for advertisers and customers.
This task can take years to complete, but little by little they will reach the goal along with the technology.
While building and strengthening this new commerce platform that will be able to encompass its flagships, such as Facebook, Instagram and WhatsApp, the company will use the WhatsApp app to increasingly strengthen the current advertising-based business that is already available and integrated into its platforms.
We still don't know the level of impact WhatsApp is having on this service, as the Facebook reporting data doesn't show click-to-WhatsApp ad sales.
This value becomes even more unknown when we take into account that the more than 1 million companies that make use of the service are just a small portion of the 50 million users considered corporate by WhatsApp.
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How WhatsApp makes money: more details on profits
These large numbers are also due, in part, to the pandemic. Since most people cannot leave their home, mobile advertising and marketing has become one of the main ways to reach audiences.
Sales and growth of Facebook Ads have seen a boost and an average price per ad increase of up to 30% per year.
In addition, there was also a 12% increase in the number of ads delivered to the public, according to data from the Q2022 XNUMX report.
As of March 31, the company reported that nearly 3,5 billion people are using the company's apps, whether WhatsApp, Instagram and Facebook. These numbers show a 15% increase compared to the same period in 2022.
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