I am going to show some hidden facts about how does whatsapp make money without ads.
what are the most amazing features of WhatsApp
Initially, WhatsApp was used to share messages and calls on smartphones. With every single day, the app came with exciting features that everyone is heard.
WhatsApp is now every single feature to offer to its user from free international calls to document sharing in no time. The WhatsApp or feature is yet another highlight of the app.
WhatsApp gave another security reason to love it. Want to know what is that? Like Apple iMessage and signal. WhatsApp now comes up with end to end encryption security feature.
The feature helps keep your data safe and secure. Also, our user can accept or reject an unknown person’s message with the security feature of WhatsApp. These are some of the best features of WhatsApp.
Also read: How Does Discord Make Money
Earning of WhatsApp can be divided into two parts
So, the acquiring of WhatsApp by Facebook and after the acquiring of WhatsApp by Facebook.
1. Before acquiring of WhatsApp by Facebook
Brian Acton founded WhatsApp, Jan koum in the year 2009.
He had a very simple revenue model, as simple as was completely ad free. The founders thought that ad in a messaging app was very uncomfortable for the users.
WhatsApp was free for the first year, and after that had a subscriber plan of $1 per year in some regions and free in other regions.
By this revenue model. It had an annual income of $700 million, and a company valuation of $1.5 billion.
2. After acquiring of WhatsApp by Facebook
Facebook acquired WhatsApp in 2014 for $19 billion. As I told you, what is the pad a company valuation of just $1.5 billion? And then why did Facebook acquire it for $19 billion.
The founders of WhatsApp had condition that WhatsApp will remain ad free forever.
Facebook after acquiring WhatsApp also cancelled the subscription plan like $1 per year and made WhatsApp completely free.
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How Does WhatsApp Make Money?
Facebook uses the data from WhatsApp to display ads in Facebook and Instagram. Like this WhatsApp generates in debt income.
The picture shows the condition as mentioned in the WhatsApp website that the Facebook company will use the data from WhatsApp to improve their services.
1. Facebook uses the data from WhatsApp to select the people to show a specific advertisement
For example, if I want to buy a phone, I will chat about different phones with my friends in WhatsApp.
Share them pictures of different phones, Facebook algorithms uses this data and it will display ads of different phones in my Facebook timeline and Instagram page.
Like this. Facebook uses WhatsApp data to show ads to a person which he or she is interested in and he or she will buy it.
Facebook does this very effectively. Because Facebook has a data base of size 300 petabytes and WhatsApp provides Facebook data of over 1 billion users.
This increases the efficiency of ads displayed in Facebook and therefore a greater number of companies want to advertise their products through Facebook. This increases the revenue of Facebook.
2. WhatsApp does not generate any direct revenue.
Facebook uses the data from WhatsApp to show users Pacific ads, and hence WhatsApp generates indirect revenue.
Forbes estimated WhatsApp potential revenue to be $5 billion and average revenue per user to be $4 By 2020.
Facebook, accessing WhatsApp users, messages and images leads to loss of the user’s privacy. But it also helps to display ads according to user’s necessity and interest.
This is set to be an option in WhatsApp to disable Facebook from accessing user’s data if they users want.
3. WhatsApp payments
WhatsApp payments is yet another beneficial update. The app will also have the same feature within the app. The p2p payments option will play the role of brand reputation booster for businesses. The p2p plan feature was recently announced by Mark Zuckerberg in f8 conference.
so it was some hidden fact about how does whatsapp make money without ads.