WhatsApp had a bit of a mixed business model at the beginning. The company had initially charged users an annual subscription fee, but then they removed it and, since then, the application has been free to use. When Facebook acquired it, there was no doubt that the company planned to monetize the application, but how exactly would they do that?
Last year, WhatsApp had confirmed that they would insert ads in status updates, similar to Instagram stories, but now according to a report by The Wall Street Journal, Facebook is abandoning those plans. The report states that Facebook’s zeal for monetizing WhatsApp was what led the founders of the application to quit the company.
The report goes on to say that Facebook also established a team to look for ways to monetize the application, but that team has since dissolved, with the work they have done so far removed from the WhatsApp code.
This means that, at least for now, Facebook will not present ads to WhatsApp, but with such a massive and active user base, it would be silly to think that Facebook will not visit this again in the future. However, when or how they plan to address the issue remains to be seen, but for now, WhatsApp seems to be free of publicity.
Filed in. Read more about Facebook and Whatsapp. Source: wsj