Here's Why Meta Is Betting Big On Whatsapp Business

It's not uncommon for companies to adjust their products so that they're tailor-made for businesses. The likes of Skype and Instagram offer business alternatives, with the latter making a lot of sense given its owned by Meta. The company is all about helping businesses to succeed through its various platforms, including WhatsApp.

WhatsApp Business has been around since 2018, and Mark Zuckerburg is confident it will prove valuable in providing further monetization opportunities for Meta moving forward. According to him, the app is going to be "the next big chapter," with Meta betting big on Whatsapp Business for the next coming months.

WhatsApp reportedly brings in 2 billion monthly active users

When it comes to popular social networks, Meta pretty much has a stronghold on every other company out there. Facebook has been at the top for years now, with the site reportedly recording 2.91 billion monthly active users worldwide. Several spots down is apparently Instagram on 1.48 billion, and nestled in between them is WhatsApp on 2 billion. While WhatsApp might be more for talking than anything else, its exceptional popularity indicates that any monetization efforts on Meta's behalf could rake in the big bucks. That alone might be enough to start trusting Zuckerburg when he says he has faith in what WhatsApp Business could achieve. 

WhatsApp Business is offering a premium service several years after being free

WhatsApp has long been popular because it offers an alternative messaging service with plenty of great features. When WhatsApp Business was rolled out in 2018, it continued to strike a chord with users because of its communication options. It allowed businesses to directly contact customers and vice versa, making it easier to answer questions, resolve issues, and increase sales. At the time, WhatsApp Business was free to use, something that apparently inspired five million businesses within the first year to try it out and explore its advantages. Now that those businesses have had several years to grow accustomed to it, they're more likely to feel inclined to pay for the upcoming premium service.

WhatsApp Business will generate income for Meta through several different avenues

There are several ways in which WhatsApp Business' new premium service could prove a massive moneymaker for Meta. For one, the purchase of the service alone will generate income. How much this generates depends on the number of businesses willing to pay up. Given that it allows for consumers to start talking to them immediately after clicking on a Facebook or Instagram ad, though, plenty of small businesses will likely see the appeal. It's this method of clicking on ads that will also provide monetary opportunities for Meta because it will increase their ad revenue significantly. As more businesses flock to the network because of its popularity, that income should steadily increase.

Meta might be hoping that WhatsApp Business resolves recent financial hardships

Meta's plan for WhatsApp Business makes a lot of sense. Through the company's various sites and apps, it's able to offer a wide range of services. It seems to be Meta's hope that consumers won't need to look elsewhere to meet their needs, particularly when it comes to businesses. Plus, it's understandable for those businesses to rely on this company for everything. After all, doing everything within Meta means no signal loss, so they can get a clearer idea of their return-on-advertising spend. Will this all work out the way Mark Zuckerburg wants it to, though? Given that Meta has reported losses across several consecutive quarters, some might be wary. However, once WhatsApp Business launches, it could be the moneymaker that pushes the company back to the top.

Meta is confident that the reliance on messaging will work to their advantage

With messaging being such an important part of everyday life, it's perhaps not hard to see the potential that WhatsApp Business has for Meta. The company's Chief Operating Officer, Sheryl Sandberg, previously stated their belief that messaging behavior will continue to grow and adapt around the world. She shared that the click-to-message feature of WhatsApp Business is "already a multi-billion dollar business" for Meta, which they believe will see "strong double-digit year-over-year growth." Although small businesses will have to pay for the premium service, WhatsApp Business still offers what Meta considers an "inexpensive" tool for small businesses to interact with customers.

Once the premium service for WhatsApp Business is rolled out, it'll be clearer to see whether this is a moneymaker for Meta or a step in the wrong direction. It's hard to imagine it being the latter, although the pricing may well determine that. After all, when there's talk of the world being in recession, there's only so much small businesses are willing to pay to go premium.