Business News: Facebook lifts veil on how it is making money from WhatsApp.
Facebook In 2014, he paid a staggering $ 19 billion to purchase WhatsApp. Investors wondered how the company could cash in on the acquisition, especially after the company canceled a controversial plan to sell ads on the app. On Wednesday, the company finally gave some details on how it uses WhatsApp to increase ad sales on its other platforms. Facebook and Instagram.
Companies using WhatsApp to communicate with customers and transact – a group considered key to the future of the app – were able to purchase ads on Facebook and Instagram since 2017 which include a button that allows users to switch to WhatsApp and start a conversation with that company. CEO Mark Zuckerberg said Wednesday that there are now 1 million companies using these “click WhatsApp” ads.
It is also rolling out a new feature: business users will now be able to start creating those ads themselves from The previously unavailable WhatsApp Business app makes the ad buying process smoother.
Zuckerberg made Facebook announcement Earnings Expect First Quarter of 2021. The Company posted total quarterly advertising revenue of $ 25.4 billion, up 46% from the same period of the previous year. It posted earnings per share of $ 3.30, up 93% year-on-year, on revenue of nearly $ 26.2 billion. Wall Street analysts had forecast revenue of $ 23.7 billion.
Positive results come despite a number of problems Facebook dealt with during the quarter, including relapses from the Capitol uprising on January 6 and questions about disinformation, ongoing antitrust scrutiny and privacy concerns after millions of user information was sent to a hacker site.
However, it is unclear what impact it has. The company did not disclose sales from Click-to-WhatsApp ads and the million businesses using them are a fraction of WhatsApp’s 50 million total business users. (In all Facebook services, more than 200 million companies use its business tools).
“In the long run, there is the potential to monetize the WhatsApp platform, but it will take some time before it becomes a more significant driver. [of revenue] but it remains an interesting platform, ”said Daniel Flax, senior analyst at Neuberger Berman, prior to the earnings report and announcement.
“The impact on our business will be manageable,” Wehner said of the update. “We continue to expect it to be a headwind for the rest of the year, but we are making good progress … on our solutions to help advertisers manage these changes, and this includes helping advertisers work with the Apple API is our approach to using aggregated data for targeting and measurement. “