How facebook will monetize whatsapp?

As the time of writing this article, A few days earlier whatsapp announced that it’s laying of its annual 1 dollar fee and now everyone will enjoy a life time subscription without paying anything to whatsapp. Its founder Jan Koam also emphasized that he had no plans of bringing advertisements into your whatsapp experience. But If the company is giving off its business model then won’t be doing it for nothing and this rises an obvious question: How facebook will monetize whatsapp? And will it remain free for all? One thing is sure that facebook will monetize whatsapp sooner or later, but what method they will use. 

Whatsapp was bought by facebook with $19 Billion

To answer this question we need a wider prospective that illustrates how facebook had monetized its own social network. By now its enjoying continuously increasing profits from its advertisement business. We will come back to it later for now let’s look at a quick history of whatsapp.

19 Billion Dollar Investment of Facebook

A year before Mark Zukerburg acquired the mobile instant messaging plat form whatsapp for an incredible amount which totals to a staggering 19 billion dollars. It was a huge amount and it is still the highest tech deal in the history of the world. Then facebook was widely criticized for this move. 

facebook will surely monetize whatsapp

But now it seems that big investing had started paying back. In just one year whatsapp had doubled its user base from 500million to an astonishing 1 billion active customers worldwide. Its ahead of facebooks very own messenger app which currently had 800 million users. 

When is the Time to Payback big investment

Facebook had invested an awful amount of money in whatsapp and they surely have same pretty good ideas using which they can earn back their investment. Probably this is why whatsapp had dumped its clumsy money making idea. But one thing Is sure they aren’t in no hurry because facebook’s own profits are souring and Mark Zukerburg in now world’s 6 richist person.

by giving free whatsapp lifetime membership, facebook is just expanding its users base, when they found that its time and people can no more live without whatsapp they will throw their business in, so no one can resist any longer.

Its obvious to me that by giving free whatsapp lifetime membership, facebook is just expanding its users base, when they found that its time and people can no more live without whatsapp they will throw their business in, so no one can resist any longer. As It already happened with facebook Pages, one each post of pages can reach to all of its followers free, but facebook is deliberately decreasing the organic post reach of your facebook pages they charge you money to increase reach of your page posts. As people have pages with millions of fans and in order to reach their fans facebook charges per post from page owners. They can do very much same thing with whatsapp. They can easily charge whatsapp’s free call feature. 

Selling their Big Data

Now whatsapp one million active users exchange on average 42 billion text messages daily, 250 million videos daily and also billions of pictures. All these messages reveal a lot of insights to individual’s life I.e. what things that people often talk, what is the most talked about gadget and what are they planning to spend their money. Facebook can use all this data to targeted advertisement for individual’s and therefore boosting its advertisement business. Also they can sell this data to other companies which are willing to pay for it.