WhatsApp’s CEO, Will Cathcart, recently denied a report from the Financial Times that suggested the messaging platform was considering introducing advertisements to boost its revenue. Cathcart took to social media to address the rumors and stated, “This @FT story is false. We aren’t doing this.”
WhatsApp, which is owned by Meta Platforms, has been seen as a potential growth opportunity since Meta acquired it in 2014 for $19 billion. However, the platform has primarily relied on its business messaging service for small and medium-sized enterprises for revenue generation.
The Financial Times report mentioned that Meta was discussing the possibility of displaying ads in the lists of conversations with contacts on the WhatsApp chat screen. However, no final decisions had been made. Additionally, the report suggested that Meta was also considering the option of charging a subscription fee to use the app without ads.
Last quarter, WhatsApp generated an estimated $1.06 billion in sales, representing only 3% of Meta’s total revenue. However, Meta’s CEO, Mark Zuckerberg, has previously expressed his belief that WhatsApp and Messenger will drive the next wave of sales growth for the company, with business messaging becoming a major pillar.
Implementing ads on WhatsApp could potentially be a lucrative move, but it may not be well-received by users. Analyst Danni Hewson from AJ Bell stated, “Rolling out advertising on the messaging app could be a money maker but it would feel obtrusive and clunky.” She added, “The speed at which the story has been refuted does suggest that Meta is aware of how unpopular the move would be… it does look like a non-starter, for now.”
Despite rumors and speculations, WhatsApp remains committed to providing a seamless and user-friendly messaging experience without the intrusion of ads.