Meta (META.O) has launched its first AI-driven ad targeting program for businesses on WhatsApp, aiming to generate revenue from the popular chat service. The company announced this initiative on Thursday at a conference in Brazil.
CEO Mark Zuckerberg revealed the new tools in a video showcased during the event. This development marks a significant shift for WhatsApp, an encrypted messaging service known for its strong emphasis on privacy. Traditionally, WhatsApp has avoided the targeted advertising methods prevalent on Meta’s other platforms, such as Facebook and Instagram.
Over the past few years, Meta has introduced various commerce and payment features on WhatsApp, including “business messaging” tools. These tools enable companies to conduct customer service chats and send marketing materials to users who have shared their phone numbers. Previously, these tools were quite basic, sending messages to all users who had opted in. However, the new AI tools will leverage behavior on Facebook and Instagram to target messages to customers who are most likely to be interested, provided they use the same opted-in phone number across accounts.
Guilherme Horn, WhatsApp’s head of strategic markets, told Reuters that these AI tools would enable businesses to optimize ad delivery to users who are most likely to engage. “This is very important for business because they are paying for those messages,” Horn said.
Meta has been intensifying efforts to monetize WhatsApp, its largest app in terms of daily users. Despite its popularity and the substantial $22 billion acquisition price tag in 2014, WhatsApp has contributed only a small portion to Meta’s total revenue. At the conference, Meta also introduced a new AI chatbot designed to handle business inquiries directly in chat. This is an early test of Zuckerberg’s vision to persuade businesses to outsource their communications to automated tools. The chatbot will assist users with common requests, such as finding catalogs or checking business hours, similar to existing AI-powered customer service platforms.
Additionally, Meta announced the integration of Brazil’s instantaneous digital payment method PIX into its WhatsApp payment tool in the country. PIX, designed by Brazil’s central bank, accounted for about 39% of transactions made in Brazil last year and offers services similar to WhatsApp’s payment tool, such as money transfers between individuals and purchases from companies. WhatsApp introduced payment services from rival providers in India last year.
The launch of the AI-driven ad targeting program for WhatsApp represents a strategic move by Meta to capitalize on its widely used messaging service. By integrating advanced AI tools and popular payment methods like PIX, Meta aims to enhance the platform’s appeal to businesses and increase its revenue contribution.
