Meta, the parent of social platforms Facebook and Instagram, is making big changes to stay in sync with how people use social media.
While it has made several efforts to boost revenue through subscriptions, one standout in this shift is WhatsApp, initially known for simple messaging but now playing a vital role in Meta's money-making strategy.
In a recent chat with the New York Times, Meta CEO Mark Zuckerberg highlighted the growing significance of the messaging platform. "If you're imagining what the future's private social platform would be, it would probably look a lot like WhatsApp," Zuckerberg explained.
While Meta invests significantly in advanced technologies like VR and AI, it still makes most of its money from Facebook, Instagram and Threads.
However, as it works towards intertwining these apps, Meta faces the challenge of making them work seamlessly.
WhatsApp Could Be Meta's Missing Puzzle
With WhatsApp now playing a crucial role in Meta's plans, ads on Facebook and Instagram are guiding users to this app and Messenger.
The company's goal is to prompt users to engage with all its apps, maximizing profits in the process.
To achieve its revenue target of $10 billion in 2023, Meta is altering its strategy, providing tools and apps for businesses to interact with customers directly.
Major brands like Chevrolet, Lenovo, L'Oreal and Samsung have already adopted these tools.
Meanwhile, Meta has introduced a highly successful ad format known as "click-to-message" on Facebook. This format seamlessly connects users to a brand's WhatsApp, contributing to rapid ad growth.
Though Meta is aware of the risks, brands are still buying ads on Facebook for WhatsApp. This ensures a steady income, even as more users choose WhatsApp for its straightforward messaging without ads.
However, Meta might struggle to strike the right balance among its slate of services.
If brands spend more on WhatsApp, it could mean less money for Facebook and Instagram, meaning the tech giant needs to figure out how to make money from WhatsApp without making it less attractive to users.