Plans for a WhatsApp monetization model are now public, as COO Matt Idema discloses the scheme to turn revenue from the popular mobile instant messenger…
A WhatsApp monetization is now on the horizon. Just recently, the company began testing verified business accounts. Now, the reason for such a test is finally revealed. In an interview, Matt Idema, COO of WhatsApp, tells Fox Business the Facebook property is looking into opening revenue streams which differ from its other products.
Facebook Decides It’s Time for a WhatsApp Monetization
Instead of relying on ad dollars, like Facebook and Instagram do, the WhatsApp monetization will come from pay-to-use features. But, display ads are still possible. However, current plans include streamlined B2C communication features.
Three years ago, Facebook acquired WhatsApp for $22 billion. Now, it’s putting that investment to use. “We want to put a basic foundation in place to allow people to message businesses and for them to get the responses that they want. We do intend on charging businesses in the future,” Idema explained.
Presently, small and even large companies use free tools. These provide the ability to field customer inquiries and send updates to consumers. But, this free model will indeed change. The holdup is the company doesn’t yet know how it will effectively monetize the mobile app.
However, it is known companies must receive user approval to contact them. A company spokesperson states the new features in testing in Europe, Brazil, India, and Indonesia, require businesses to opt-in.
This development does help to quell speculation about schemes to monetize the app, which first began after when Facebook eliminated the .99¢ sign-up fee when it bought the company in 2014. Also, more details will come in the near future.