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WhatsApp once promised to have No Ads! No Games! No Gimmicks!\u201d on its platform. Last month, the news that ads were in fact coming to WhatsApp, which parent company Meta announced at Cannes Lions, prompted plenty of questions about user privacy and concerns about how user data could be used for ad targeting. (Meta has said that ads on WhatsApp will be targeted based on user details like location, language, followed Channels, and interactions with other ads.)<\/p>\n
There are plenty more questions about ads on WhatsApp\u2014but advertisers are already thinking about ways to leverage the new channel.<\/p>\n
\u201cThe holistic ecosystem is evolving to connect different ways to interact with brands,\u201d Grant Parker, president of ad-tech platform Innovid, told Marketing Brew. \u201cThis is just another addition to that that I think needs to be obviously threaded very carefully, in terms of the needle, between relevancy and offering value to consumers versus making sure that they feel really good about their personal communications remaining private.\u201d<\/p>\n
Between you and me:<\/strong> With limited targeting options available on the platform, Parker said that brands looking into the channel will likely put \u201ca lot of emphasis on the creative message, because there’s going to be less understanding of who the person is.\u201d He also recommended advertisers consider contextual factors, including time of day or whether target users are on the desktop or mobile versions of WhatsApp, to inform ad campaigns in the absence of more granular audience data.<\/p>\nAs is often the case with newer channels, there may be some brand hesitation, especially given users\u2019 privacy concerns, Parker told us. <\/em>With that said, some early adopters are piloting ads on the platform while others wait to see how public perception continues to shake out, he said. Clients in the retail, tech, and telco space usually show interest in testing ad offerings like this.<\/p>\nAccording to two media buyers, CPMs for WhatsApp Status ads, which show up in the Updates tab on the platform, <\/em>range from $0.10 to $0.15.<\/p>\n\n
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\u201cAn irrelevant ad is actually worse than an unviewable one,\u201d Parker said. \u201cYou\u2019re going to have brands trying to connect with consumers in WhatsApp without a lot of understanding of who that person is…Brands are really going to have to get their creative right.\u201d<\/p>\n
Shatesha Scales, paid social supervisor at Rain the Growth Agency, said that while WhatsApp ads could potentially be useful for targeting users by location, Scales sees it as potentially being a more valuable channel for branding, building upper-funnel awareness for a brand, and generating leads and traffic.<\/p>\n
She compared WhatsApp ads to sponsored messaging on Snapchat, saying the agency has been leveraging more conversational ad formats.<\/p>\n
New horizons:<\/strong> While WhatsApp may have some ad targeting limitations, it does present a new opportunity. It\u2019s embracing AI agents, which brands can use to directly engage with consumers, and Parker said that he expects AI agents to grow in use among consumers, presenting a potential opportunity for brands.<\/p>\n\u201cAs these AI agents start to become a source of heavy communication with consumers, there\u2019s an opportunity for brands to create relevancy again, but it has to be a great value exchange for consumers to find that to be something that they\u2019re willing to trade for.,\u201d he said. \u201cI think we\u2019ll see this continue to evolve, where brands are looking for ways to be relevant in those spaces.\u201d<\/p>\n
Meta is leaning into WhatsApp AI agents, announcing a test of Business AI in WhatsApp earlier this month. The AI agents are designed to make personalized product recommendations and direct users to brands\u2019 sites, all while communicating with consumers within a WhatsApp chat.<\/p>\n
Next steps:<\/strong> Parker expects the platform\u2019s ads operations to get more sophisticated over time. Likewise, he said, as the platform\u2019s monetization grows, \u201cthere\u2019s going to be, ultimately, demands from advertisers to measure and capitalize on it,\u201d to get a better understanding of engagement.<\/p>\n\u201cThere will be evolution, as you\u2019ve seen from all of Meta\u2019s offerings over time,\u201d he said.<\/p>\n<\/div>\n
Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"WhatsApp once promised to have No Ads! No Games! No Gimmicks!\u201d on its platform. Last month, the news that ads were in fact coming to WhatsApp, which parent company Meta announced at Cannes Lions, prompted plenty of questions about user privacy and concerns about how user data could be used for ad targeting. (Meta has […]<\/p>\n","protected":false},"author":1,"featured_media":22505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[78],"tags":[],"class_list":{"0":"post-22504","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-marketing"},"yoast_head":"\n
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