Just how Apps Like WhatsApp, WeChat Could Make Money While Providing Free Texting And Calling8192435
Ever thought about the way a messaging app could make money whilst offering free texting and calling? WhatsApp users in India could be surprised to know that there is far more to messaging apps than communicating. Here's how: by providing services for example digital payments, online shopping and content.
China's WeChat is one of the ultimate example of the great possibilities that messaging apps hold. With over 900 million monthly active users, WeChat assists them do almost everything from messaging, buying grocery, hailing cabs, purchasing online food as well as offline payments at restaurants - all this without needing to go to another app. These types of services not only provide the company unbelievable customer stickiness, additionally they create a outstanding revenue model.
At this point, WeChat's opponents outside China such as WhatsApp, Facebook Messenger, Skype, Viber as well as Line are behind the curve on this front, although some have begun on the path to becoming greater platforms. "The actual reason chat apps are expanding beyond communications is to build a sustainable monetisation strategy," said Neha Dharia, a senior analyst with a focus on messaging at London-based research firm Ovum. "Chat apps are shifting from being simply a provider of communication tools chat, voice as well as video) to becoming 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 every month active users, introduced a business version in India early this week. "Based on research, we realize that people are employing WhatsApp to talk to businesses. make business messaging far more convenient for folks and more efficient for businesses," a WhatsApp representative 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 businesses, many of who might be using WhatsApp already.
Even while Whatsapp has placed the service free, it might broaden it to larger businesses with added features for example analytics, from which it may well charge a usage fee at a later stage, as a result developing a revenue model, segment watchers said. This also is targeted at increasing subscriber connect which it can make use of for future monetization of its other services. The greater agenda - and a more important one - for these firms is to get active users to invest far more time on the app or services as well as make it viable for income generation, according to specialists.
"Each and every technology company is competing for consumer stickiness, interaction and time spent on the app, and in order to keep them in the app's ecosystem they're broadening themselves to become platforms. Just being messaging applications that provide free services will not be a solid revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.
