Reportedly, Facebook (FB - Free Report) owned WhatsApp will soon allow advertisers to display ads in its Status section. Per NDTV, the ads are expected to be rolled out from next year.
Originally inspired by Snap’s (SNAP - Free Report) Snapchat Stories, Status was introduced in February 2017. The feature allows users to display text, photos, videos and Graphics Interchange Format (GIFs) on a separate tab in the WhatsApp application.
Notably, ads will be visible on WhatsApp Android beta version 2.12.305.
Can Status Bring Success to Facebook?
Facebook is clearly looking to monetize its platforms. The company detailed its efforts to generate revenues from platforms like WhatsApp and Messenger in the last reported quarter.
Notably, WhatsApp currently boasts a user base of over 1.3 billion. Additionally, as confirmed at Facebook’s F8 developer conference this May, WhatsApp Status has 450 million daily active users (DAUs) globally.
The social media giant intends to bring ads to WhatsApp Status to familiarize its users with the current businesses on WhatsApp. To start with, Facebook is expected to roll out ads to the 35% of WhatsApp users who are active on Status.
Additionally, through these ads, business owners can get deeper insights into the needs and preferences of customers. Businesses can gather customer data as Facebook allows users to know which contacts have viewed their Status.
We believe this feature will attract more and more advertisers to the platform, thereby bringing in ad dollars, which contribute significantly to the top line (98.5% of total revenues in last reported quarter).
Notably, the company is bringing ads to WhatsApp Status after its success on Instagram Stories. On the last conference call, management noted that Instagram Stories has 400 million DAUs.
Facebook, Inc. Revenue (TTM)