Meta-owned WhatsApp starts in-app ads for 1st time
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Shares of Meta Platforms, the top performing stock in the Magnificent 7 this year, got a boost Monday as the tech giant announced plans to introduce paid advertising to WhatsApp, opening up a new revenue stream.
The Updates tab, which holds layers such as Status and Channels, will host Meta’s WhatsApp monetisation efforts. At least for now.
WhatsApp introduces ads and channel subscriptions in the Updates tab, but reassures users that private chats remain fully encrypted.
The cofounders of WhatsApp resisted ads in the app for years, including after the company was acquired by Meta for $22 billion in 2014. Brian Acton and Jan Koum left the company in 2017 and 2018, respectively, and on Monday Meta introduced ads in the “Status” feature as well as sponsored Channels in the the “Updates” tab of WhatsApp.
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For the first time since launching in 2009, WhatsApp will now show users advertisements. The ads are “rolling out gradually,” the company said. For now, the ads will only appear on WhatsApp's Updates tab,