The Way Apps Like WhatsApp, WeChat Can Make Money Whilst Providing Free Texting And Calling
Ever thought about how a messaging app can make money whilst giving free texting and calling? WhatsApp users at India might be surprised to learn there is far more to messaging apps than communicating. Here's how: by offering services such as digital payments, online shopping and also content.
China's WeChat is among the best example of the huge potential which messaging apps hold. With more than 900 million monthly active users, WeChat assists them to do almost everything from messaging, purchasing grocery, hailing cabs, ordering online food and even offline payments at restaurants - all this without needing to go to another app. These kinds of services not merely offer the company unbelievable customer stickiness, in addition they create a wonderful revenue model.
Right now, WeChat's competitors outside China including WhatsApp, Facebook Messenger, Skype, Viber and also Line are behind the curve on this front, even though some have begun on the path to becoming greater platforms. "The reason chat apps are widening beyond communications is to build 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 and also video) to being a platform for the exchange of services, payment mechanisms and also content consumption."
WhatsApp, the biggest messaging app on earth with 1.3 billion every month active users, introduced a business version in India very early this week. "Based on research, we all know that people are using WhatsApp to talk to businesses.
make business messaging more convenient for individuals and more efficient for businesses," a WhatsApp representative said in respond to ET's questions. App Alternative is a separate app from Whatsapp Messenger, aimed mostly at giving a direct communicating platform to small businesses, many of who may be using WhatsApp already.
Even while Whatsapp has kept the service free, it could extend it to larger businesses with added features like analytics, in which it could demand a usage fee at a later stage, thus developing a revenue model, segment watchers said. This actually also is aimed at improving subscriber connect which it can leverage for future monetization of their other services. The bigger agenda - and a more critical one - for these businesses is to get active users to spend far more time on the app or services as well as make it viable for profit generation, according to specialists.
"Every technology company is competing for consumer stickiness, interaction as well as time invested on the app, and in order to keep them within the app's ecosystem they're widening themselves to turn into platforms. Simply being messaging applications that offer free services is not going to be a strong revenuegeneration model," said Jayanth Kolla, founder of Bengaluru-based research firm Convergence Catalyst.
China's WeChat is among the best example of the huge potential which messaging apps hold. With more than 900 million monthly active users, WeChat assists them to do almost everything from messaging, purchasing grocery, hailing cabs, ordering online food and even offline payments at restaurants - all this without needing to go to another app. These kinds of services not merely offer the company unbelievable customer stickiness, in addition they create a wonderful revenue model.
Right now, WeChat's competitors outside China including WhatsApp, Facebook Messenger, Skype, Viber and also Line are behind the curve on this front, even though some have begun on the path to becoming greater platforms. "The reason chat apps are widening beyond communications is to build 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 and also video) to being a platform for the exchange of services, payment mechanisms and also content consumption."
WhatsApp, the biggest messaging app on earth with 1.3 billion every month active users, introduced a business version in India very early this week. "Based on research, we all know that people are using WhatsApp to talk to businesses.
make business messaging more convenient for individuals and more efficient for businesses," a WhatsApp representative said in respond to ET's questions. App Alternative is a separate app from Whatsapp Messenger, aimed mostly at giving a direct communicating platform to small businesses, many of who may be using WhatsApp already.
Even while Whatsapp has kept the service free, it could extend it to larger businesses with added features like analytics, in which it could demand a usage fee at a later stage, thus developing a revenue model, segment watchers said. This actually also is aimed at improving subscriber connect which it can leverage for future monetization of their other services. The bigger agenda - and a more critical one - for these businesses is to get active users to spend far more time on the app or services as well as make it viable for profit generation, according to specialists.
"Every technology company is competing for consumer stickiness, interaction as well as time invested on the app, and in order to keep them within the app's ecosystem they're widening themselves to turn into platforms. Simply being messaging applications that offer free services is not going to be a strong revenuegeneration model," said Jayanth Kolla, founder of Bengaluru-based research firm Convergence Catalyst.
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