WhatsApp is bringing subscription model and ads to its messaging platform

WhatsApp has announced a series of new features that will change the way people interact with brands on the Meta-owned messaging platform and give companies more chances to cash in on user engagement.

The changes, to be rolled out over the next few months according to Meta, expand and monetize the functions of WhatsApp’s “Updates” tab, which has historically been a place for users to follow news and updates from their favorite companies, news organizations and celebrities. A new subscription model on the tab will allow channel admins to offer users exclusive content for a monthly fee. 

“This means channel owners will be able to share exclusive in-the-moment updates with their most engaged followers, and they’ll be able to earn money while doing so,” said Nikila Srinivasan, vice president for product management at Meta said on a call with reporters. 

Channels will remain free for WhatsApp users. However, channel admins will have an option to set a monthly fee within a range if they opt to utilize the subscription model, according to a Meta spokesperson. 

Channels will also have the ability to promote their content to get in front of users more easily by buying ads or boosting their channel through Ads Manager. “Similar to how it works on Facebook and Instagram, businesses decide how much they want to spend based on their objectives,” the spokesperson told CBS MoneyWatch.

Integrating ads 

WhatsApp is also planning on integrating ads into the “Updates” tab which will allow users to message brands directly if they see a product or service they want, or have a customer service question. Up until this point, users had to click on ads on Instagram or Facebook to open up a WhatsApp chat with a company.

“People really want to chat to businesses on their own terms, and they want to do it in a place where they already spend their time, which is on WhatsApp,” said Srinivasan.

Srinivasan said the new ad feature will allow businesses, such as Verizon, Wendy’s and L’Oréal to attract more customers directly on the messaging platform.

“This is going to enable businesses like them to do even more,” she said. WhatsApp will roll out the new features to a global audience over the next few months, according to Srinivasan.

Meta introduced the “Updates” tab on WhatsApp a year ago. It’s now visited by 1.5 billion people on a daily basis. WhatsApp’s “Chats” tab, where users send and receive messages, will remain end-to-end encrypted and will not be used to show ads, Srinivasan said.