How Apps Like WhatsApp, WeChat Helps Make Money Even while Offering Free Texting And Calling

Ever thought just how a messaging app can make money while offering free texting and calling? WhatsApp users within India could be surprised to know that there is far more to messaging apps than communicating. Here is how: by offering services like digital payments, online shopping and content.
China's WeChat is just about the best example of the great opportunity that messaging apps hold. With more than 900 million monthly active users, WeChat assists them do everything from messaging, purchasing grocery, hailing cabs, ordering online food and also offline payments at restaurants - all of this without having to go to another app. These kinds of services not only offer the company incredible customer stickiness, additionally they create a outstanding revenue model.
At this point, WeChat's competition outside China such as WhatsApp, Facebook Messenger, Skype, Viber and Line are behind the curve on this front, although some have started on the way to becoming larger platforms. "The actual reason chat apps are expanding beyond communications is to develop 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 from being just a provider of communication tools chat, voice as well as video) to being a platform for the exchange of services, payment mechanisms and also content consumption."
WhatsApp, the biggest messaging app on the planet with 1.3 billion every month active users, introduced a business version in India early this week. "Based on research, we know that people are employing WhatsApp to speak with businesses.
make business messaging less difficult for individuals and much more efficient for businesses," a WhatsApp representative said in respond 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 might be using WhatsApp already.

Even while Whatsapp has placed the service free, it may extend it to bigger businesses with added features such as analytics, from which it may well charge a usage fee at a later stage, hence developing a revenue model, segment watchers said. This actually also is aimed at raising subscriber connect which it can leverage for future monetization of their other services. The greater agenda - and a more critical one - for these corporations is to get active users to spend a lot more time on the app or services as well as make it viable for income generation, based on experts.
" App Alternative is vying for consumer stickiness, interaction and time spent on the app, and in order to keep them around the app's ecosystem they are broadening themselves to turn into platforms. Merely being messaging apps that offer cost-free services certainly won't be a good revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.
15.02.2018 19:37:38
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