Meta Leverages WhatsApp’s 1.5B Daily Users for Ad Revenue

Meta Leverages WhatsApp’s 1.5B Daily Users for Ad Revenue
  • calendar_today August 31, 2025
  • Technology

WhatsApp is changing — for the first time since its launch in 2009, the messenger giant is starting to put ads in its app. Ads won’t be scattered in between personal messages or group chats. Instead, they’ll live quietly in the “Updates” tab — where users can post Status updates or follow channels for specific interests and topics. Meta, WhatsApp’s parent company, says this is a conscious choice to make sure the ads don’t “interfere with personal chats.” Ads are being rolled out slowly, with only a few being introduced to a select group of users at a time.

Meta claims over 1.5 billion people use the Updates tab daily. That’s a lot of potential eyes for advertisers. If you only use WhatsApp for chats, though, you may never see an ad. For those who frequently scroll through the Updates section, however, the experience may soon look different.

Three kinds of ads are being introduced. First, ads are being placed in the Status section. As you scroll through your friend’s photo, video, or text status updates, which disappear after 24 hours, you might now also see ads. These ads look and feel just like normal statuses — except they’re from brands. Users can click on these and start a conversation directly with the business.

Second, WhatsApp is introducing promoted channels. This means channel administrators can pay for increased visibility to get their content in front of more users. For businesses and creators, this is a way to expand their audience directly within WhatsApp — something that’s never been possible before.

Third, Meta is testing a subscription model for channels. Brands can charge users a monthly fee in exchange for exclusive content. For example, a user could pay to follow a cooking channel that sends out exclusive recipes and updates to subscribers. It’s a new revenue stream for WhatsApp and a monetization tool for brands and influencers.

But what about privacy? That’s what many users will be asking. After all, WhatsApp has always been a private, secure messaging service. Meta says it’s taking a cautious approach. Ad targeting will be based on broad information — like country code, device language, age range, and city — rather than exact location or personal information. Additionally, WhatsApp will use user engagement on channels and status updates to influence the ads they see. For example, the type of content they follow, how they interact with posts, and what ads they click on.

Importantly, all private messages will still be end-to-end encrypted. WhatsApp says it will not read your messages or use them to serve ads. For those who use other Meta services like Instagram or Facebook, there’s also an optional feature called Accounts Center. If you link WhatsApp to this, Meta can pull data from other apps and use it to personalize your ad experience. This feature is turned off by default and can be turned off at any time.

WhatsApp will also offer transparency tools so users can understand and control their ad experience. You’ll be able to see why a particular ad was shown, block certain advertisers, or report any ad you find inappropriate. The company is trying to make the experience as friendly — and as optional — as possible.

Behind all of this is a bigger strategy. WhatsApp, despite its 2 billion users globally, hasn’t done much to support Meta’s massive advertising empire. Most of WhatsApp’s revenue currently comes from its Business Platform — a paid service that lets businesses chat with customers — and “click-to-WhatsApp” ads on Facebook and Instagram. But that’s changing. Meta CEO Mark Zuckerberg has said WhatsApp’s Business Platform is a growing revenue stream. Now, by putting ads directly inside WhatsApp, Meta is looking to go even further.

“This felt like the next natural evolution,” says Alice Newton Rex, WhatsApp’s VP of Product. “Businesses were looking for more ways to engage with users directly within the app, and this was the answer.” Other social platforms, like Reddit and Discord, are also exploring deeper advertising models. Social platforms — even those that built their reputation on being privacy-first — are looking for ways to insert ads without alienating users.

Meta bought WhatsApp for $16 billion back in 2014. For years, the app remained untouched by Meta’s ad machine. But with the advertising business more important than ever — Meta earns about 98 percent of its revenue from ads — it was only a matter of time before WhatsApp was next. This is the beginning of a new era for the platform.

For users, the change may be completely unnoticed — especially if they don’t use the Updates tab. But for WhatsApp and Meta, it’s a big deal. A change that reflects both the pressure of the economy and the need for growth from investors.

Ads on WhatsApp are no longer a concept. They’re real and they’re here. The experience hasn’t changed much so far. But with Meta at the helm, this could be the beginning of WhatsApp’s transformation into a full-fledged commercial platform.