How Does Whatsapp Generate Revenue? Business and Revenue Model Of Whatsapp.

 

Whatsapp is an app that needs no introduction in today’s era!

 

It is basically an American freeware, cross-platform messaging and Voice over IP service owned by Facebook, Inc.

 

Family groups, friends group, office groups, play groups and many more other groups see millions and millions of messages per day that too for free !

But, Whatsapp too have some maintenance costing.

 

Do you really know how does Whatsapp make money? What is the Business and Revenue model of Whatsapp?

 

 

Well! Through this article, we will be clearing all your doubts. 

Let’s talk a bit about the history of Whatsapp.

 

 

Ex-Yahoo Employess ‘Brian Acton and ‘Jan Koum are the founders of Whatsapp, who once went to Facebook for Job. But they were rejected; and later on they end up launching their own messaging platform Whatsapp. 

Earlier Whatsapp used to charge $1 as subscription fee (LOL!)

 

 

On 19th February 2014, Facebook Inc acquired Whatsapp in a US$19 billion deal.

 

Now, Why would Mark Zuckerberg the CEO and 7th Richest Person of the planet (as per the internet research dated May 21st 2020) would invest that much of money in buying a platform that is for free?

 

 

Sounds interesting, right? 

whatsapp earning

Let’s talk about some technical points.

When we are online, we generate some tera bytes of tera bytes of data every moment on daily basis which includes our shopping, watching, listening, and all other interests.

 

 

And this data is then transferred to Facebook through which they put effective targeting options in Facebook ads. 

Eg- Ever happened, when you talk about visiting your favorite destinations  on whatsapp; and when you use Facebook you see advertisement of Make My Trip or Goibibo ?

Or, when you had a strong argument with your partner, and you start seeing a dating app ad. !  

 

Relatable, right?

 

And how can you forget the Emoji that you send, files that you send, the topics that you discuss in groups !

 

All this data shows one’s behavior and are shared with Facebook to make its advertisements more effective.

As per the reports, In the fourth quarter of 2019, social network Facebook’s total revenues amounted to 21.08 billion U.S. dollars,( 1,592,435,900,000 Indian Rupees) the majority of which were generated through advertising. The company announced over seven million active advertisers on Facebook during the third quarter of 2019.

 

 

Facebook Inc. has 84 acquisitions and mergers till now( dated May 21st 2020). Latest being the Facebook-Giphy Deal, if you haven’t read it yet, read it for free!

Someone has said “If you are not paying for any product, you are the product” !    

 

 

Despite this, the wonderful platform that Facebook has given to the world; is truly a piece of blessing. One can easily connect with his/her friend, family and beloved one that too without paying any single penny to log-in into this wonderful platform. 

Disclaimer: The understanding made here on how whatsapp make money is the sole views of the writer. No any investor, banks or VC (Local or Global), or qualified researcher, consultants, or any company have confirmed or explained. The article claims no exact revenue model of whatsapp, it is not meant for misleading, but is based on secondary web researches.

Please use your own views and discretion while reading.