Facebook makes almost all of its money through advertising. But it’s trying a different approach with its WhatsApp unit.
The world’s most popular messaging service is pushing more aggressively into customer service features, including a pay-to-message option for businesses, and says it’s focusing on enterprise tools, not advertising. WhatsApp paused plans for targeted advertising late last year, surprising those who thought it would follow in line with its parent company.
“Our focus has been on the business messaging products,” says Matt Idema, WhatsApp’s chief operating officer. He said WhatsApp still envisions ads inside Status, a feature on the app similar to Facebook’s Stories, at some point.
Our focus has been on the business messaging products
WhatsApp announced an update on Thursday aimed at businesses that use its API, the software interface that lets companies manage message threads with their customers outside of the app, like through a third-party dashboard. WhatsApp currently charges some businesses a small fee – a few cents per message – to send users things like receipts and confirmation reminders through the app instead of email.
Now WhatsApp will offer more API features, including free storage to host a business’s messages, in hopes that more of them will sign up for the API. Idema says 175 million of WhatsApp’s 2 billion-plus users interact with a business on the app every day, a sign that WhatsApp is focused on a function people care about. Tens of thousands of businesses use the API, Idema said, though Facebook doesn’t disclose WhatsApp’s revenue.
Part of WhatsApp’s appeal has been its high level of encryption, which means messages are never typically stored on Facebook servers or read by the company. By offering to store a businesses messages if they ask, WhatsApp is also committing to not use them to bolster ad targeting, a spokesman says.
Facebook has been working for years to figure out a way to turn its incredibly popular messaging apps into a remunerative business. The company pushed automated messaging bots aggressively a few years back on Messenger, its other standalone chat app, but that use case never took off. It also puts advertising inside of Messenger, though analysts don’t consider it to be a significant part of Facebook’s revenue.
The new plan is a combination of commerce and customer service. Charging businesses to send messages through the API is the only way WhatsApp makes money today. But Facebook has invested in a number of international companies, including Jio Platforms in India, to secure partners for WhatsApp as it builds commerce and business features in those markets. In India, for example, many small business owners use WhatsApp in lieu of a website, relying on the service to interact with customers and display product catalogs.
WhatsApp is trying to expand that functionality, too. Retailers can now promote a Facebook Shop on WhatsApp, a product catalog that works across all of the company’s apps, including Instagram. Idema sees Shops as a graduation of sorts from WhatsApp’s existing catalogs feature, saying it will let retailers manage a digital storefront from all Facebook’s apps instead of just on WhatsApp.
The next phase of WhatsApp’s plan will also include payments, enabling customers to buy products directly within the app. Those plans have hit regulatory snags in a number of countries, including India and Brazil, WhatsApp’s largest markets, adding to the complexity around making money through private messaging.
Facebook reports earnings on Thursday, October 29.
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Company name: Play:Date
Launched: March 2017 on UAE Mother’s Day
Founder: Shamim Kassibawi
Based: Dubai with operations in the UAE and US
Sector: Tech
Size: 20 employees
Stage of funding: Seed
Investors: Three founders (two silent co-founders) and one venture capital fund
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Electric scooters: some rules to remember
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- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
