WhatsApp Will be a Major Source of Revenue for Facebook – Here’s How
Now that WhatsApp has crossed the 900 million mark in terms of monthly active users, many have now started turning their attention on how this Facebook-owned messaging app can start making money for its lucrative owner.
Many are eager to see what Facebook will get from this messenger after splashing an amazing $22 billion back in February 2014, just to acquire the services of this app. So, what now for Facebook?
Facebook to merge WhatsApp with its Messenger app
There are ongoing rumors that Facebook may eventually merge WhatsApp with its messaging app, Messenger. This is in a bid to create a unified B2C channel for messaging purposes, a feature that is expected to be the main source of revenue for this social networking company.
Facebook is working on a platform whereby the company will be taking a cut from every message that is sent via the B2C service. In short, the message will be the product. But this is not expected to be an easy sail despite the vast numbers the app already boasts. The announcement that Facebook’s major acquisition has reached 900 million users comes just a few months following the announcement that it had again achieved 800 million users. However, this does not directly translate into money.
It seems the owner of the app is focusing on expanding the user base, and his target is for the app to reach 1 billion users. It is only after achieving this mark that the company will begin monetizing the app. In the first half of 2014, WhatsApp generated a mere $15 million in revenue and recorded a loss of $232.5 million. This is despite the fact that the app charges $1 per year for using it. Nonetheless, Facebook is expected to start reaping soon.
Facebook to start pushing WhatsApp in the U.S.
Facebook Messenger is more popular in the U.S. than WhatsApp. However, the latter is very popular in Europe, Asia and other parts of the world. According to some tech pundits, Facebook might just begin to push more for WhatsApp usage in the U.S. thanks to the fact that the app has now shown its potential in other markets.
Bringing WhatsApp together with Facebook Messenger may just be the best chance the company has to ensure it gets the most out of its usage in the United States.