Facebook adds catalogs to WhatsApp

It seems Facebook is taking the monetization of WhatsApp seriously. Its Voice over IP and cross-platform messaging service acquired by the tech giant in 2014 for $19 billion.

In a blog post (read here) on Thursday, the company announced the new WhatsApp feature that will make it easier for businesses to better market their products.

WhatsApp's new tool, known as the catalog feature, will showcase the full range of products and services that companies offer.

Previously, such businesses had to repeatedly send product photos and provide merchandise information to different customers.

Product catalogs on WhatsApp

Now, however, this digital storefront will allow a business to add information, such as price, description, and product code, to each item in its catalog.

This, according to Facebook, will facilitate greater customer engagement and improve focus in ongoing chat without users visiting a company's dedicated website for product referrals.

Additionally, when users are ready to make purchases, they will be automatically directed to the designated payment solution providers' website.

The catalog feature, which marks Facebook's latest attempt to milk its chat app, is now available to businesses using the WhatsApp Business app on Android and iPhone.

It is for countries like Brazil, Germany, India, Indonesia, Mexico, the United Kingdom and the United States. Soon to other parts of the world, according to the blog post.

Facebook WhatsApp Catalog

Facebook makes a lot of dough

Of course, Facebook's flagship News Feed product continues to generate significant ad revenue. In its third-quarter earnings report, the company revealed that its Average Revenue Per User (ARPU) posted a 19 percent year-over-year increase to $7,19.

This translates to $17,6 billion in revenue on the back of Facebook's 2,45 billion users. Factors contributing to this tremendous growth include the fact that Facebook users are more likely to click on ads compared to users on other social media platforms.

Additionally, this improved user interaction is driven, at least in part, by the company's optimized algorithms that deliver the right ads to the right people.

Now it's time to leave money to Instagram and WhatsApp

However, it now appears that the tech giant is ready to start milking its Instagram and WhatsApp platforms as well. In March 2019, Facebook added a shopping feature to Instagram that allowed users to click a "checkout" option on items tagged for sale and consequently pay for those items from within the app.

Also, in 2018, the company announced that it would start charging businesses for sending marketing and customer service messages through WhatsApp. According to a WhatsApp spokesperson, more than 100 companies are using this paid product, while around 5 million use the free WhatsApp Business service.

All of these developments follow Facebook's general strategy of putting greater emphasis on private chats by increasing the number of bots and augmented reality tools. The purpose of these changes, according to the company's CEO, Mark Zuckerberg, is to encourage companies to communicate with consumers, through the tech giant's various messaging services.


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