WhatsApp’s decision to start generating revenue from advertising is a strategic shift. After years of operating ad-free, the world’s most-used messaging app with over 853 million users in India alone is joining Meta’s other platforms – Facebook and Instagram – to display ads. These short-form ads will appear in its Updates tab between user-generated statuses and channel posts.
Think of it as Instagram Stories but with a personal inbox proximity. “Even if WhatsApp captures 5-10% of Meta’s estimated 16,000-crore India ad revenue, they’re looking at800 to 1,600 crore in spends,” says Abhishek Gupta, joint managing director at BEI Confluence. “Much of it will come from D2C brands, edtech and government campaigns.”
For media planners, this means reshuffling budgets towards attention-rich zones, not just impression-rich ones. People don’t open WhatsApp to scroll or discover. It’s not a browsing platform. Therefore, the creative approach must be different. Ads need to feel familiar, not forced. “There’s always a risk when a utility becomes a billboard,” says Amit Dhawan, partner & CEO, ArtE Mediatech. “But if the relevance is high and the intrusion is low, users might not mind — much like we’ve accepted ads in Gmail.” He adds formats that mimic native behaviour will win. These include short-form videos, tappable stories, and visual-first CTAs.
The key is not to break the sanctity of the chat experience, say experts, and to stick to the Updates tab. The moment ads enter chats, the backlash will write itself, they say. Yasin Hamidani, director at Media Care Brand Solutions, echoes the sentiment: “There’s inherent risk. Poorly targeted or interruptive ads could trigger backlash. But if Meta ensures high relevance and caps frequency, user acceptance may mirror that of Instagram Stories.”
The broader question is whether this move changes WhatsApp’s identity, from user-first to brand-first.
Experts say this is a tightrope, as WhatsApp has built its brand on trust and privacy. Turning into another broadcast platform could risk it becoming “just another Meta product”. Ambika Sharma, founder of Pulp Strategy, believes a middle path is possible. “Instead of becoming brand-first, WhatsApp can be value-first — giving users more reasons to stay while allowing businesses to participate meaningfully.”
Despite the presence of big brands, many experts believe WhatsApp’s monetisation offers a level-playing field, especially for small and medium businesses. “Imagine reaching your neighbourhood via a WhatsApp Channel ad instead of burning budget on pan-India Instagram reach,” says ArtE Mediatech’s Dhawan. Adds BEI’s Gupta, “ If WhatsApp keeps the entry barrier low, this can level the field.”
WhatsApp isn’t designed for discovery or immediate action like search or social platforms, so measurement needs a new lens. “Treat it more like a CRM than media,” says Dhawan. “Conversations are the conversion.” In the short term, marketers should allocate a portion of their budget to pilot campaigns, evaluate ROI, and use those insights to inform longer-term planning, opines Siddhartha Singh, co-founder, Black Cab.
Experts recommend tracking conversation rates, business inquiries, and lead quality over vanity metrics. “Negative consumption metrics will also be especially critical — opt-outs and ‘why are you reporting this ad’ must also be considered when showing hard numbers for impressions, as they will tell you the users’ actual tolerance for your messaging,” adds Raghunandan Saraf, founder and CEO, Saraf Furniture.
Experts predict reallocations rather than fresh spends. “Expect a dip in lower-performing Meta placements. If targeting and reporting mature, 8-10% of digital budgets could shift here in 12 months,” says Dhawan.