Meta Moves To Monetise WhatsApp

Meta has officially rolled out advertisements on WhatsApp as of June 16th. suggesting for years that it would introduce advertisements to the messaging app.

The company already pulled in an eye-watering USD 162+ billion from advertising last year, and WhatsApp, with over a quarter of the world’s population using it, is a massive untapped market. “The business case is undeniable,” notes one marketing executive. Indeed, about 1.5 billion people use WhatsApp’s Updates tab every day, giving Meta a huge new ad inventory. CEO Mark Zuckerberg has called messaging “the next pillar” of the company’s growth strategy. By introducing three new revenue features; Status ads, paid channel subscriptions, and paid channel promotions, Meta can finally monetize WhatsApp.

Founded in 2009 by Jan Koum and Brian Acton, WhatsApp was initially envisioned as a secure, ad-free platform. Koum and Acton promised to keep the chat app exclusively free from advertisements, and this commitment to privacy helped WhatsApp grow to roughly 2 billion users worldwide. However, the app’s trajectory shifted dramatically when Zuckerberg’s Facebook acquired it in 2014, setting the stage for its current transformation.

How WhatsApp Ads Will Work

So, what will WhatsApp’s ads look like? Meta says all the ads will live in the Updates tab (the section for Stories-like Status posts and Channels). Businesses can buy “status” ads that appear between friends’ updates (much like Instagram Stories), where users can tap the ad to chat with the advertiser directly. WhatsApp Channels, a broadcast feature launched in 2023, will also be monetized. Channel admins can pay to boost their channel’s visibility in the directory, and even charge monthly subscription fees for exclusive content. For example, a media outlet could create a channel with special stories, and ask subscribers to pay a small monthly fee for those updates. Meta initially won’t take a cut of those subscriptions, though a 10 percent fee is planned later. The company describes these features as “the biggest shift” in WhatsApp’s model, the first time in-app advertising will appear at all.

Meta stresses that personal messaging isn’t changing. Ads are strictly kept out of the private Chats tab. “We’ve been talking about our plans to build a business that does not interrupt your personal chats for years and we believe the updates tab is the right place for these new features to work,” said Nikila Srinivasan, VP of business messaging, at Meta.

“Your personal messages, calls, and statuses remain end-to-end encrypted. What this means is that no one, not even us, can see or hear them. And they cannot be used for ads.”

Meta assures that Ads will be targeted using only “limited” non-sensitive data: country or city, device language, which Channels you follow, and how you interact with ads. Meta explicitly promises not to sell or share your phone number with advertisers. If you’ve opted into Meta’s new Accounts Centre (which links your Facebook, Instagram and WhatsApp accounts), you may see slightly more personalized ads based on your combined Meta profile. But in principle, the company says, the core end-to-end encryption and privacy of your chats will remain intact.

Privacy Assurances Amid Growing Concerns

Privacy advocates aren’t convinced that promise is enough. Several experts argue that even “privacy-oriented” targeting can be dangerous. Lena Cohen of the Electronic Frontier Foundation warns that targeted ads “based on your personal data” are a “privacy nightmare” no matter what app they appear on. Even if WhatsApp itself doesn’t read your chats, the limited signals it does use can be combined with data from other sources to profile you. Cohen bluntly advises users not to link WhatsApp to Meta’s Accounts Centre, doing so would broadcast even more personal information (from Facebook and Instagram) into the ads pipeline. In other words, by tying together your accounts across Meta’s empire, you make it easier for advertisers to learn about you.

Meta is also trying to reassure users with controls, for instance, you can simply disable the Updates tab if you don’t want any ads, limiting your WhatsApp to chats only. WhatsApp’s CEO Will Cathcart emphasizes “this won’t affect your inbox” and that anyone who only uses WhatsApp for messaging “won’t see this”. But critics point out that many people will still see the ads simply by having the app and occasionally checking Updates. Alberto Sanchez, head of media, Orange line, warns that injecting ads into WhatsApp “marks a significant departure from its ad-free promise” and “may feel invasive and manipulative” to users. In other words, even if the encryption remains, some say trust is being chipped away.

The rollout will be gradual, with ads and new features becoming available in different regions over the coming months. Users who prefer an ad-free experience can disable the Updates tab entirely in settings, ensuring that those who use WhatsApp solely for personal messaging see no changes.

A big concern is whether Meta can ensure legitimate advertisers on WhatsApp. On Facebook and Instagram, scammers have often managed to buy ad space and promote fraudulent schemes. The Washington Post recently documented tricksters running Facebook/Instagram ads for fake “tariff relief” or bogus giveaways, Meta eventually removed them only after reporters flagged them. Similarly, Fox News found scammers using AI-generated celebrity videos (e.g. Kelly Clarkson endorsing “free money”) to drive victims into WhatsApp chats for phishing. In short, malicious actors routinely slip through Meta’s ad review by the hundreds. An industry analysis notes that setting up Facebook/Instagram ad accounts requires very little verification, enabling scammers to create multiple accounts and run fly-by-night campaigns. If WhatsApp’s ad system follows the same model, fraudsters could use it to target the app’s users as well.

This threat is especially relevant in regions like Africa, where WhatsApp is ubiquitous and enforcement can be spotty. For example, South Africa’s financial regulator just warned about fake WhatsApp investment groups impersonating a major bank executive and promising astronomical returns (160 percent) in a month. These groups solicit people through the app’s broadcast feature and then vanish with the money. Meta’s new ad channel could give similar fraud more visibility, any malicious business could pay to promote a suspicious channel or status update among unsuspecting users. Critics argue that without strong new vetting rules, introducing ads will invite scammers. The worry is that a platform once known for privacy will now also become part of the global online ad ecosystem, and all its scams.

The Broader Meta Vision

The changes also reflect how WhatsApp’s role is shifting in Meta’s vision. How it’s becoming a media channel and marketplace. Marketers and analysts see opportunity, one ad executive says Status ads “fit naturally” and could become “high-performing” if done right. But for users, the shift is dramatic. Acton and Koum departed Meta years ago over disagreements exactly like this. Acton famously said he regretted selling “my users’ privacy” in the Facebook deal. Now that promise is undone, and WhatsApp will look much more like its big siblings Facebook and Instagram.

Whether users will accept this remains to be seen. Meta insists it’s built in the most careful, opt-in way, and users can avoid the Updates tab if they want. But moving from whispered chats to ad breaks is a tough evolution. As one commentator puts it, WhatsApp is switching from a private messenger to “a new advertising frontier.” Trust will be the real test, can Meta keep its word that “your inbox isn’t changing” even as it turns WhatsApp into part of its vast ad machine? Only time will tell if billions of people feel their favourite chat app was worth the price.