Posts

Showing posts from October, 2015

How will Facebook monetize Whatsapp?

Image
Whatsapp is one of the biggest acquisition by Facebook. Is the $19 billion dollar justified?
It has been over an year now and whatsapp is growing its user base at an exponential rate. Official records peg whatsapp MAP (Monthly Active Users) at 900 million. And still there are no signs of monetization.

So what is Facebook thinking and what are its plans of monetizing whatsapp?
Mark Zuckerburg is thinking big with whatsapp and focusing on a larger user base which is more engaged. Whatsapp has a different business model and an FB like ad strategy might not work for whatsapp.
Thus, some of the options which whatsapp can use to monetize itself are:

1) Whatsapp can be used for P2P payments. This is a huge use case for whatsapp but there are compliance issues and privacy risks which need to be mitigated before this option can be rolled out.

2) The other option which is much more promising is to leverage the power of connections and create a transactional model of connecting users to busines…