Since Facebook Inc. acquired Instagram, the well-known app for instant sharing of photos, stories, and messages became one of the revenue sources for the company. Instagram made around 2 billion dollars out of the total cap of revenues made by advertisements since the platform was purchased by Facebook Inc.
Facebook made in over 13 billion dollars on advertising out which 2 billion dollars was made through Instagram since the company added advertisements to Instagram stories.
It was recently stated that WhatsApp after four years since Facebook acquired it, will have the same fate as Instagram, also being owned by one of the largest social platforms, which should provide Facebook Inc. (FB) with another profit source through advertising.
WhatsApp to Create More Revenue for Facebook with Advertisements
Previously buying off Instagram, Facebook Inc. also bought WhatsApp years ago, now planning on implementing the same strategy for making an extra profit as it was the case with Instagram. While Facebook earned over 13 billion dollars from advertising in the second quarter of the fiscal year 2019, 2 billion out of the mentioned sum was made through Instagram advertisements.
The ads were added to Instagram stories and with around 400 million users posting and sharing their stories on daily basis, so the traffic was enough to spin 2 billion. It is considered that WhatsApp will make the same success once the ads are added to the story feature, having over 450 million users sharing their stories through this app.
That means that WhatsApp could bring the additional 2 to 3 billion dollars to Facebook Inc. with advertisements alone, that way creating another profit source for this social media giant. WhatsApp is considered a rather popular application for socializing and messaging, as it counts over 1.5 billion users, of which quarter of a billion are all located in India.
It is already known that the original head of WhatsApp, Brian Acton, left the company year back in 2017, right after he clearly showed that he is against the monetization of WhatsApp through adding advertisements to the story feature. Brian Acton wasn’t the only one leaving, as Mike Krieger and Kevin Systrom from Instagram also deserted the company due to disagreements with Zuckerberg.