The Way Apps Like WhatsApp, WeChat Helps Make Money Whilst Providing Free Texting And Calling1331608
Ever thought about the way a messaging app can make money while giving free texting and calling? WhatsApp users within India could be surprised to learn that there are much more to messaging apps than communicating. Here's how: by offering services such as digital payments, online shopping as well as content.
China's WeChat is probably the best example of the huge possibilities which messaging apps hold. With over Nine hundred million monthly active users, WeChat assists them do almost everything from messaging, purchasing grocery, hailing cabs, buying online food as well as offline payments at restaurants - this all without having to go to another app. These services not only provide the company incredible customer stickiness, they also create a wonderful revenue model.
At this point, WeChat's rivals outside China this includes WhatsApp, Facebook Messenger, Skype, Viber and also Line are behind the curve on this front, even though some have begun on the way to becoming larger platforms. "The actual reason chat apps are growing 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 shifting 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 largest messaging app in the world with 1.3 billion monthly active users, introduced a business version in India early this week. "Based on research, we realize that people are utilizing WhatsApp to speak to businesses. make business messaging far more convenient for individuals and much more productive for businesses," a WhatsApp spokesperson said in response to ET's questions. Whatsapp Business is a different app from Whatsapp Messenger, aimed largely at giving a direct communication platform to small enterprises, the majority of who may be using WhatsApp already.
Even while Whatsapp has maintained the service free, it could broaden it to much larger businesses with added features like analytics, in which it may well demand a usage fee at a later stage, as a result making a revenue model, segment watchers said. This also is aimed at raising subscriber connect which it can make use of for future monetization of its other services. The bigger agenda - and a more important one - for these companies is to get active users to spend much more time on the app or services and also make it viable for revenue generation, according to analysts.
"Each and every technology company is vying for consumer stickiness, interaction and time invested on the app, and in order to keep them in the app's ecosystem they're broadening themselves to turn into platforms. Merely being messaging apps that provide cost-free services won't be a strong revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.
