NIKILA SRINIVASAN’S ELDERLY mother in Chennai uses WhatsApp to talk to her milkman. Like millions of other Indians, the messaging service is her link to various users and services, and her US-based daughter. “WhatsApp is a place where people are having their everyday conversations,” says Srinivasan, Global VP of Business Messaging at Meta. One of her responsibilities is to look for ways to monetise WhatsApp.
And that is a question that has bugged the messaging service for long. In 2014, when Facebook (now Meta) Founder and CEO Mark Zuckerberg unveiled his plans to acquire WhatsApp for $19.6 billion, many called the deal overvalued. But ace investor Warren Buffett spoke favourably. “I don’t understand technology, but I understand people. If Mark Zuckerberg believes in WhatsApp, that’s good enough for me,” the Oracle of Omaha had said.
But while Instagram—bought in 2012 for $1 billion—posted an estimated $51.4 billion in revenues in 2022 (per a Social App Report), WhatsApp brought in nearly $13 billion in 2022 (per AppMagic). The big difference between them lies in their monetisation models—which for Instagram, is mostly ad-based. Experts say that an encrypted messaging platform like WhatsApp isn’t favourable to ads.
It’s not as if WhatsApp has not tried; from charging users $1 per year, to launching WhatsApp Pay for which businesses would have to pay a flat fee of 3.99 per cent on every transaction, it has done it all, but to no avail. India, Meta’s happy hunting ground for pilot projects, too has disappointed WhatsApp in terms of monetisation, so far.
Denne historien er fra October 29, 2023-utgaven av Business Today India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 29, 2023-utgaven av Business Today India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS