WhatsApp Monetization: New Features and Ads Introduced
The new features and ads on WhatsApp aim to balance revenue generation with user privacy, but raise concerns about compliance with EU laws and the potential impact on user behavior, as some may opt for alternative messaging apps that prioritize privacy and transparency.
Meta is introducing new features in WhatsApp's Updates tab, including channel subscriptions, promoted channels, and ads in Status, to help users discover channels and businesses while generating revenue for the platform.
The new features will allow users to support their favorite channels for a monthly fee through channel subscriptions, discover new channels through promoted channels, and view ads from businesses in the Status section. These features are designed to be privacy-friendly, using limited information such as country, language, and ad preferences, and will appear only on the Updates tab, away from personal chats.
However, the introduction of ads on WhatsApp has raised concerns about user privacy and potential violations of EU laws, including the Digital Markets Act (DMA) and GDPR. Meta's plan to use personal data from Facebook and Instagram to target ads on WhatsApp may not meet the requirements of "freely given" user consent for data sharing and personalized advertising.
The rollout of the new features will be gradual over several months, and WhatsApp plans to introduce ads on its Status screen, similar to Instagram's Stories, where users will see ads after scrolling through a few updates. The company will also allow businesses to promote their WhatsApp Channels and charge users for exclusive updates, generating revenue through its WhatsApp Business platform and click-to-WhatsApp ads.
The introduction of ads on WhatsApp may lead to a new wave of users switching to alternative messaging apps like Signal, which is non-profit and donation-funded. noyb, a privacy advocacy group, plans to examine the breach of law and may initiate procedures against Meta if necessary, citing concerns about the company's prioritization of profits over user privacy.