Facebook’s chat service WhatsApp is adding more ways for companies to communicate with customers, and opening up a new way for parent company Facebook to cash in.
While WhatsApp doesn’t have advertising outright, it is increasing functionality for businesses on its platform called WhatsApp Business. An update to WhatsApp Business Wednesday will allow companies to send information to customers through WhatsApp. Companies can also add a link to their WhatsApp chat on their website or pay Facebook to promote the chats in an ad.
Companies can use the WhatsApp chat feature for free, as long as they respond to a customer’s message within 24 hours. Otherwise, the company has to pay a fee to WhatsApp.
Facebook’s move is its latest attempt to monetize the other apps in its portfolio, like WhatsApp, Messenger, and Instagram. Facebook said last week that 2.5 billion people use its family of apps each month.
Facebook hinted it may not be as profitable during a call with analysts for its second-quarter earnings report, projecting lower revenue growth and operating margin growth going forward.
But it still could have room to grow with its other apps, including WhatsApp. Allowing people to click a Facebook ad to get to a WhatsApp Business chat could encourage more businesses to buy more advertising. Charging for customer service messages may provide an additional revenue stream. The company has also added similar customer service and other ad opportunities on Messenger to attract businesses.
