Without a doubt, this information is one of the most important of 2020, since it was also one of the situations of this year that was causing more controversy, related to Facebook and WhatsApp, the possibility for Facebook to add advertising to the messaging application and that it did with which the app's founders decided to leave Facebook.
According to Wall Street Journal, Facebook will have archived this idea and the social network will have ended with the company team that was responsible for looking for a way to do so. This information takes many by surprise, since early in the year some slides were presented on how the application could work with advertising, but it is certainly excellent news for users.
So, what convinced Facebook that ads aren't the way of WahatsApp?
For a company that refuses a form of profit that was estimated at 22 billion dollars, it means that it has another idea up its sleeve, and that idea of promoting a more profitable way than ads is WhatsApp Business.
In early 2018, Facebook started releasing several tools for companies that rely on WhatsApp to communicate with customers. The new services allowed merchants to install digital stores, offer customer support, send order updates, build automated bots and more – all through WhatsApp.
In several countries like India and Brazil, WhatsApp is the Internet for many people, and a variety of small and medium-sized salespeople rely solely on it to receive orders and market their products. Incidentally, these are also the regions where ad returns are not as significant as, for example, the USA or Canada.
For example, in 2017, Facebook earned 1,000% more per user in the U.S. and Canada ($ 19.38) than in Asia ($ 2.13). Companies want to be where users are, and in those countries, that place is WhatsApp.
A source in the WSJ report added that Facebook has really shifted its focus to WhatsApp's new commercial products. It is in electronic commerce that the company will already be focusing and, reportedly, is going well.
In its first year of operations, WhatsApp India recorded revenue of $ 1 million. It is true that it is a small value, since the application is used by hundreds of millions of people in that country alone. From brands as small as housewives to large conglomerates, WhatsApp Business has found rapid adoption. Globally, it already has more than 5 million customers – companies that use it to sell their products and services.
In addition, with a user base of more than a billion people, WhatsApp Business has virtually no competition and a zero initial cost, which makes it very attractive, especially for small companies that cannot afford the costs of other platforms e-commerce like Amazon. WhatsApp should also launch the possibility of digital payments in some countries, which will allow everything to be done within the company's application.
For now, it is not official, but the logic of this information released by the WSJ makes sense and, although we must always look at this information with a backward footing, it is undoubtedly very credible information.