Facebook Won't Put Ads in WhatsApp -- For Now (newsweek.com) 29
Facebook "will no longer push through with its plans to sell ads on WhatsApp," writes Engadget, citing a report in the Wall Street Journal which says WhatsApp still "plans at some point to introduce ads to Status."
Newsweek reports: WhatsApp is the only app in Facebook's suite of products free from ads, which make up a vast amount of the parent company's revenue, bringing in the majority of its $17.65 billion during Q3 last year. Like rival apps Snapchat or TikTok, advertising features prominently in Messenger and Instagram. But what does it mean for Facebook? The impact of a delayed WhatsApp ad roll-out will not only mean a financial hit, but may also disrupt how much ad data Facebook can possibly extract from users of the app's desktop and web versions.
Currently, Facebook does not charge people for access to its products. Instead, it monetizes personal information by selling details about user preferences to companies for use in targeted ads. And there is clearly money to be made via mobile-based ads, which brought in about 94 percent of Facebook's total ad revenue during the third quarter of last year... "My assessment of this is it will be a delayed introduction of ads," social media consultant and commentator Matt Navarra told Newsweek today... "With the current climate of unrest surrounding data privacy and Facebook's plans to integrate its messaging apps backend, as well as the many legal battles they are facing, I suspect they are being cautious with yet more activity that could ruffle feathers at this time," Navarra told Newsweek. "But it's a case of when they do launch ads in WhatsApp, not if," he predicted.
The ad strategy sparked clashes between Facebook executives and WhatsApp founders Jan Koum and Brian Acton, and became a factor in their departures from the firm. Koum and Acton, pro-privacy technologists, reportedly feared the app's encryption could be put at risk.
Newsweek reports: WhatsApp is the only app in Facebook's suite of products free from ads, which make up a vast amount of the parent company's revenue, bringing in the majority of its $17.65 billion during Q3 last year. Like rival apps Snapchat or TikTok, advertising features prominently in Messenger and Instagram. But what does it mean for Facebook? The impact of a delayed WhatsApp ad roll-out will not only mean a financial hit, but may also disrupt how much ad data Facebook can possibly extract from users of the app's desktop and web versions.
Currently, Facebook does not charge people for access to its products. Instead, it monetizes personal information by selling details about user preferences to companies for use in targeted ads. And there is clearly money to be made via mobile-based ads, which brought in about 94 percent of Facebook's total ad revenue during the third quarter of last year... "My assessment of this is it will be a delayed introduction of ads," social media consultant and commentator Matt Navarra told Newsweek today... "With the current climate of unrest surrounding data privacy and Facebook's plans to integrate its messaging apps backend, as well as the many legal battles they are facing, I suspect they are being cautious with yet more activity that could ruffle feathers at this time," Navarra told Newsweek. "But it's a case of when they do launch ads in WhatsApp, not if," he predicted.
The ad strategy sparked clashes between Facebook executives and WhatsApp founders Jan Koum and Brian Acton, and became a factor in their departures from the firm. Koum and Acton, pro-privacy technologists, reportedly feared the app's encryption could be put at risk.
So we continue to use it (Score:2)
For now.
Re: (Score:1)
You should never have started using it in the first place.
Or you should have dropped it like a diseased hot potato when Facebook bought them.
Either way, you're part of the problem - using their products gives power to the megacorporations.
Power limitation (Score:3)
the problem (from FB's point of view. Or advantage from the end users') is that the megacorporations are limited in the power they can obtain from WhatsApp in its current form.
To get more power, they would need to break the current end-to-end encryption.
But that end-to-end encryption is part of the features that attracts the users in the first place.
FB is probably bidding their time.
They'll probably wait until the network effect is too big. Until people are too addicted to whatsapp and can't easily convince
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They'll probably wait until the network effect is too big.
They've waited long enough.
From sometime late year, more and more people are using Telegram. I've never used Whatsapp and have had problems communicating with people who take for granted that everybody uses it. I didn't use Viber or that other one that was popular before Viber either. But starting sometime last year, a huge portion of my contacts have been installing Telegram. I get a Telegram message each time one does. Telegram is actually very useful now, it is almost hitting the level where one can be r
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It was a matter of time (Score:1)
before Facebook starts fucking up yet another good app.
WhatsApp founders Jan Koum and Brian Acton (Score:5, Insightful)
"WhatsApp founders Jan Koum and Brian Acton, and became a factor in their departures from the firm. Koum and Acton, pro-privacy technologists, reportedly feared the app's encryption could be put at risk."
If you were that concerned about privacy you wouldn't have sold out your entire userbase to FACEBOOK of all companies.
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There's RMS level concerns about user privacy and freedom which can't be bought for any price. And then there's mere mortals who may have a pretty solid stance on privacy, but when offered FACEBOOK levels of money, those concerns suddenly seem secondary to becoming a billionaire. Most people are in the second basket.
Re: (Score:2)
Because I like your privacy but I like my money more.
Duh.
I hope they do. (Score:2)
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What do you advertise?
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Re: I hope they do. (Score:2)
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What business do you work for?
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I use ads as a decision tool for purchases.
If you get on my nerves with ads, I make a point of not buying your shit.
Signal (Score:4, Insightful)
They probably held off to avoid driving people to Signal. tell your friends to install Signal now.
Re: (Score:2)
.... tell your friends to install Signal now...
I have gone the Telegram route.
Just two shortcomings I have come across with Telegram:
I am otherwise very very happy.
Threema ! (Score:2)
Doesn't use my phone number or anything else with a real world connection as the user's identifier.
Not free - I am a real customer and the company has less incentive to sell my data.
No glitches or features missing so far.
Re: (Score:2)
Threema has swipe-to reply too, which telegram unfortunately already overloaded allocated to "go back" one screen.
I do like Threema. There's a few issues with the web client, and it's not open source, but it's what I'd recommend if people are willing to shell out $2US. It has the best balance of security and usability for most people.
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You're probably better off recommending Telegram. It offers more features that most people are interested in, and is available in more places.
That's comforting. (Score:3)
It's always reassuring when a company ends a promise with "for now". ;)
Re: (Score:1)
Not for now (Score:2)
Not for now. Tomorrow, maybe.
I won't shoot you in the face (Score:2)
I won't shoot you in the face. For now.
Don't care (Score:2)
Don't use it.
Not just for now.
Meanwhile, on the edge of the Internet ... (Score:1)
... ads could kill Whatsapp.
Here is what I think I know: Facebook Messenger is the largest IM tool on the planet with the bulk of take-up among Americans. Skype follows in the US. Worldwide, excluding the US, Whatsapp dominates. Europe and elsewhere have similar or better mobile access to Internet as in the US. Bahamas, the Caribbean, South America, and Africa is not so good. Out at the edge of the Internet Whatsapp is the most used communications tool - in some cases used more than voice.
Shoving ads down t