Facebook Investors wondered how the company could benefit from the acquisition, especially after the company rolled back a controversial plan to sell ads on the app. On Wednesday, the company finally revealed some details about how it is using WhatsApp to drive ad sales on its other platforms. Facebook and Instagram.
Companies using WhatsApp to communicate and transact with customers – a group believed to be key to the app’s future – have been able to buy ads on Facebook and Instagram since 2017 that include a button that allows users to switch to WhatsApp and start a conversation with that company. CEO Mark Zuckerberg said Wednesday that there are now 1 million companies using these “Click to WhatsApp” ads.
A new feature is also introduced: business users can now create such ads directly from the WhatsApp Business app, which was not possible before, making the ad buying process more seamless.
Zuckerberg made the announcement on Facebook that the company reported quarterly advertising revenue of $ 25.4 billion, up 46% over the same period last year. On revenue of nearly $ 26.2 billion, the company had earnings per share of $ 3.30, up 93% year over year. Wall Street analysts had forecast sales of 23.7 billion US dollars.
The strong results come despite a number of issues Facebook During the quarter, including the aftermath of the January 6 riot and misinformation questions, antitrust investigations and privacy concerns continued after millions of user information were sent to a hacker site.
However, it is not clear what impact it has. The company has not posted any click-to-WhatsApp ad sales, and the 1 million companies that use them make up a fraction of the total of 50 million WhatsApp business users. (About everything Facebook Services, more than 200 million companies use their business tools.
“In the long term, they have the potential to monetize the WhatsApp platform, but it will take time for it to become a more significant driver [of revenue] But it remains an attractive platform, ”said Daniel Flax, Senior Research Analyst at Neuberger Berman, before the earnings report and the announcement.
“The impact on our own business will be manageable,” said Wehner of the update. “We still anticipate headwinds for the rest of the year, but we’re making good progress … on our own solutions to help advertisers manage these changes. This also includes advertisers working with both the Apple API and our own approach to using aggregated data for targeting and measurement. “