The Way Apps Like WhatsApp, WeChat Can Make Money While Offering Free Texting And Calling3923446
Have you ever wondered just how a messaging app could make money while giving free texting and calling? WhatsApp users within India could be surprised to find out there is a lot more to messaging apps than communicating. Here is how: by offering services such as digital payments, online shopping as well as content.
China's WeChat is one of the ultimate example of the vast opportunity which messaging apps hold. With well over Nine hundred million monthly active users, WeChat enables them do everything from messaging, buying grocery, hailing cabs, buying online food as well as offline payments at restaurants - this all without needing to go to another app. These types of services not merely provide the company unbelievable customer stickiness, additionally they create a outstanding revenue model.
For now, WeChat's competitors outside China including WhatsApp, Facebook Messenger, Skype, Viber as well as Line are behind the curve on this front, although some have begun on the road to becoming larger platforms. "The reason chat apps are expanding beyond communications is to create a lasting monetisation strategy," said Neha Dharia, a senior analyst with a focus on messaging at London-based research firm Ovum. "Chat apps are moving away from being simply a provider of communication tools chat, voice and video) to being a platform for the exchange of services, payment mechanisms as well as content consumption."
WhatsApp, the biggest messaging app on the planet with 1.3 billion monthly active users, introduced a business version in India very early this week. "Based on research, we realize that people are using WhatsApp to speak with businesses. make business messaging more convenient for individuals and more productive for businesses," a WhatsApp spokesperson said in response to ET's questions. Whatsapp Business is a different app from Whatsapp Messenger, aimed mostly at giving a direct communication platform to smaller businesses, the majority of who might be using WhatsApp already.
While Whatsapp has maintained the service free, it might broaden it to much larger businesses with added features for example analytics, in which it may well charge a usage fee at a later stage, therefore developing a revenue model, segment watchers said. This actually also is aimed at increasing subscriber connect that it can leverage for future monetization of its other services. The larger agenda - and a more crucial one - for these businesses is to get active users to take more time on the app or services and make it viable for revenue generation, according to experts.
"Every technology company is vying for consumer stickiness, interaction and also time invested on the app, and in order to keep them within the app's ecosystem they are broadening themselves to become platforms. Simply being messaging apps offering cost-free services won't be a strong revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.
