As WhatsApp begins to monetise with the launch of Ads, it is unlikely to cause user churn in India, given the lead that the messaging app has over others in terms of user base.
WhatsApp on Monday announced its plans to show ads inside the messaging app for the first time. These will only appear on Status and Channels tab, away from personal chats. “This means if you only use WhatsApp to chat with friends and loved ones there is no change to your experience at all,” the company said.
Analysts note that majority of Indian users are not likely to find them intrusive, and may not shift platforms for personal messaging. For brands, however, these advertising options present a unique opportunity to reach out to users, they add.
“While Telegram and Signal do have some audience, it doesn’t parallel that of WhatsApp. There are no free lunches and the app has been free for 16 years so in many ways it was inevitable. This will also probably open up subscription opportunities in the future,” said Vikas Chawla, co-founder of digital marketing agency Social Beat.
As per recent industry estimates, the monthly active user base of WhatsApp in India is around 700 million, while Telegram has less than 100 million users in India and Signal even lesser. Globally, WhatsApp has roughly 3 billion monthly active users. While Telegram has gained some traction in recent years, it is seen as a platform for secure and anonymous messaging and restricted to specific circles and communities.
“Indian users are used to seeing ads on other social media platforms, so it’s not going to impact the usage per se. Users will opt out to competitor apps like Telegram or Signal only if the ads interrupt their chat UI (increasing clutter) or they feel threatened about privacy or they realise their community is shifting platforms,” Nimesh Shah, head maven, Windchimes Communications, said.
However, he does view this as an entry opportunity for its competitors. “Interestingly, X has also rolled out its chat feature (XChat) in the US and it will be made available soon to all markets. It would be watching this closely, as an evolved and aspirational set of Indians are already using X and would prefer making that their messaging app as well,” he adds.
As to what WhatsApp platform means for businesses, Shah notes that packaged goods companies, FMCGs, E-commerce and Quick Commerce companies can gain from it as the platform has a high conversion rate. “People can see the ad and immediately place an order on WhatsApp with that brand,” he notes.
Chawla believes that Status and Channels can be leveraged by brands targeting “the mid to mass segments”.