Just how Apps Like WhatsApp, WeChat Can Make Money Whilst Providing Free Texting And Calling2948882
Ever thought about how a messaging app can make money whilst offering free texting and calling? WhatsApp users within India might be surprised to know there is much more to messaging apps than communicating. Here is how: by offering services such as digital payments, online shopping and also content.
China's WeChat is probably the perfect example of the huge possibilities which messaging apps hold. With well over Nine hundred million monthly active users, WeChat assists them do anything from messaging, purchasing grocery, hailing cabs, buying online food as well as offline payments at restaurants - all this without needing to go to another app. These kinds of services not only offer the company unbelievable customer stickiness, additionally they create a remarkable revenue model.
For now, WeChat's competitors outside China including WhatsApp, Facebook Messenger, Skype, Viber as well as Line are behind the curve on this front, even though some have started on the path to becoming bigger platforms. "The actual reason chat apps are growing 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 merely a provider of communication tools chat, voice and video) to being a platform for the exchange of services, payment mechanisms and content consumption."
WhatsApp, the largest 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 know that people are utilizing WhatsApp to speak to businesses. make business messaging less difficult for people and much more productive for businesses," a WhatsApp spokesman said in respond to ET's questions. Whatsapp Business is a different app from Whatsapp Messenger, aimed mostly at giving a direct communication platform to small enterprises, many of who may be using WhatsApp already.
Whilst Whatsapp has maintained the service free, it may expand it to bigger businesses with added features such as analytics, by which it could demand a usage fee at a later stage, hence developing a revenue model, segment watchers said. This also is targeted at raising subscriber connect that it can make use of for future monetization of their other services. The bigger agenda - and a more crucial one - for these firms is to get active users to invest more time on the app or services as well as make it viable for revenue generation, according to specialists.
"Each technology company is competing for consumer stickiness, interaction as well as time spent on the app, and in order to keep them around the app's ecosystem they're broadening themselves to turn into platforms. Just being messaging apps that offer free services won't be a good revenuegeneration model," said Jayanth Kolla, founding father of Bengaluru-based research firm Convergence Catalyst.