Picture this—You’re scrolling through WhatsApp and you see that their latest new feature, Chat Lock, hit the newswires. They’ll add ads to the Status screen to maximize their monetization channels. Once users scroll through a couple Status updates, they’ll start to be served ads. It’s a big change and signifies a departure from the platform’s original monetization approach. This latest move comes as the airline tries to thread the needle on user experience versus bottom line.
The news was shared by Alice Newton Rex, Vice President of Product at WhatsApp. In Rex’s view, the move to bring on ads is a logical next step for the platform. She further stated that this amendment is a response to the growing demand from businesses. They’re excited to use WhatsApp to connect more directly with users.
“It felt like the next natural evolution, now that both those businesses have scaled to help people discover businesses directly within WhatsApp. And that was what we were increasingly hearing from businesses that they wanted to do as well,” said Alice Newton Rex.
Ivan, a New Delhi–based reporter, writes about global consumer technology developments for TechCrunch. He has written for emerging technology publications such as the Huffington Post and The Next Web. His unique perspective from inside the tech industry creates even more helpful context for understanding what this new advertising feature might mean.
Ads have been fully integrated into the new Status screen. This shift illuminates the fact that social media platforms are increasingly motivated to find other revenue streams. WhatsApp plans to improve user experience by allowing businesses to promote themselves inside its most-used feature. At this juncture, this step will allow the platform to make significant revenue.
It’s against that backdrop of greater interest and competition in the space that the decision comes. Platforms are changing constantly, moving fast to gain users and time spent on their platforms. WhatsApp’s action might encourage other businesses to try to reach their audiences through WhatsApp, too. This shift has the potential to radically transform the way brands engage their audiences.