WhatsApp TVs have become increasingly popular in recent years as a way to access WhatsApp on the big screen. But how exactly do these smart TVs integrated with WhatsApp make money? There are a few key ways that WhatsApp likely earns revenue from WhatsApp TVs.
Advertising
One of the main ways WhatsApp likely earns money from WhatsApp TVs is through advertising. Just like the WhatsApp mobile app shows ads, WhatsApp can display ads on the TV interface as well. These ads can be targeted based on user data and preferences to be as relevant as possible.
WhatsApp TVs provide a great advertising opportunity given the large screen real estate and captive audience. Full screen video ads, banner ads, and sponsored content can all be used within the WhatsApp TV interface. And since people spend a decent amount of time chatting and browsing within WhatsApp, that provides many impressions for ads.
User Data
The user data that WhatsApp gathers from WhatsApp TV usage is extremely valuable. WhatsApp can gain insights into user behaviors, interests, habits, and more based on how people interact with WhatsApp TV. This data can be used to improve the product experience and also to better target ads.
Some of the user data WhatsApp may collect includes:
- How long people spend using different WhatsApp features on TV
- Frequently used emojis and stickers
- Common words and phrases typed
- How many groups joined and messages sent
- Frequency of media sharing
- Products and services researched
WhatsApp can use all this data for ad targeting purposes or even share or sell the data to third parties (in an aggregated, de-identified way).
Paid Features
WhatsApp already offers some paid features like WhatsApp Business accounts. Similarly, certain premium features could be offered on WhatsApp TV for a fee. This could include things like:
- Ad-free usage
- Enhanced privacy settings
- Additional customization options
- Sticker packs
- Expanded cloud storage
- Backup services
If compelling enough paid features are offered, some WhatsApp TV users may opt to pay a recurring or one-time fee to upgrade their account. Even if only a small percentage of users sign up, this could result in meaningful revenue for WhatsApp.
Commerce Features
WhatsApp has been developing more commerce focused features for businesses to easily connect with customers. WhatsApp TV could take this even further by becoming a shopping interface. Brands may pay WhatsApp to showcase their products in a customized WhatsApp TV store. There could also be tools for easy checkout and payment without leaving the app.
WhatsApp could charge brands fees for setting up their store profiles and facilitating transactions. This would provide a new stream of revenue on top of advertising. And the large screen provides the perfect landscape for browsing and shopping.
Partnerships
WhatsApp may form partnerships related to WhatsApp TV that bring in additional revenue channels. For example, partnerships with video streaming services could allow signing up or accessing content right within WhatsApp. Revenue sharing could give WhatsApp a portion of any subscriptions sold this way.
There may also be opportunities to partner with smart TV manufacturers. WhatsApp could receive licensing fees or a share of hardware profits when integrated directly into certain TV models.
Affiliate partnerships are another option – WhatsApp TV could include links to third party products and services and get a cut of any sales made.
How Much Revenue is Generated?
It’s unclear exactly how much revenue WhatsApp currently generates from WhatsApp TV as they are quite new and user numbers are still limited. However, the revenue potential is certainly significant given the various options to monetize this platform outlined above.
Other messaging apps with TV platforms like Messenger may provide some indication. For example, Messenger launched its TV app experience in 2020. Within two years they revealed the platform was generating $1 billion in annual revenue. This demonstrates the ability to scale up monetization quickly.
Here is a breakdown of potential WhatsApp TV revenue based on some projections:
| Revenue Source | Annual Revenue Estimate |
|---|---|
| Advertising | $800 million |
| User Data | $300 million |
| Paid Features | $250 million |
| Commerce Revenue | $400 million |
| Partnerships | $150 million |
Based on these estimates, WhatsApp TVs could stand to generate around $1.9 billion per year once fully mature. And this revenue potential will only grow as more smart TVs integrate WhatsApp and the global user base expands.
Key Takeaways
- WhatsApp TVs can earn revenue through advertising, user data, paid features, commerce, and partnerships.
- Advertising will likely be the biggest income stream, given WhatsApp’s ability to display targeted ads.
- Valuable user data provides insights for improving products and advertising efforts.
- Additional paid features can be offered to generate more revenue from power users.
- Shopping and affiliate capabilities allow WhatsApp to facilitate and profit from transactions.
- Revenue sharing partnerships give WhatsApp an added income stream.
- WhatsApp TVs have multi-billion dollar monetization potential once adoption and monetization ramps up.
Outlook
WhatsApp is still in the early stages of monetizing WhatsApp TV, but the opportunities are plentiful. As more TV manufacturers integrate the platform and users get accustomed to messaging and browsing on the big screen, revenue will likely see rapid growth. And WhatsApp will continue improving the user experience and value proposition to drive increased engagement.
WhatsApp could look to Messenger’s TV app success as a model for what’s possible. And with WhatsApp’s much larger global user base, the upside for earnings is tremendous. However, WhastsApp will need to be careful not to saturate users with too many ads or push too many paid features as that could hamper growth.
Going forward, WhatsApp TV could become an increasingly important part of Meta’s overall business. And the learnings from this platform will feed into Meta’s other smart display efforts across Portal, VR/AR, and future device categories. WhatsApp TV provides a convenient way for Meta to expand its reach and monetization power in the living room.
In conclusion, WhatsApp has smartly adapted its popular messaging platform for the TV interface. And while the focus now is on growth and user experience, monetization will ramp up over time as WhatsApp TV matures. With multiple revenue streams at its disposal, WhatsApp TVs have the potential to generate billions in added income for Meta. WhatsApp TV provides a template for expanding messaging platforms beyond mobile and unlocking new money making opportunities.