Messaging is becoming increasingly important for Meta, with more users choosing to share content in direct messages (DMs) rather than on in-app feeds. The company is also exploring ways to monetize its other messaging products, including Messenger and Instagram Direct. Meta's CEO, Mark Zuckerberg, has suggested that AI could play a significant role in boosting the efficiency of the company's messaging business.
Key takeaways:
- WhatsApp, which was bought by Facebook (now Meta) a decade ago for $22 billion, is starting to significantly contribute to Meta's non-advertising revenue growth.
- WhatsApp's business messaging product, which allows companies to pay for chatting with customers, has been a key driver of this revenue growth.
- Despite non-ads revenue being a small fraction of Meta's total revenue, it's growing at more than twice the rate as the company's ads business, indicating potential for further growth.
- As more users choose to share content in direct messages (DMs) rather than on in-app feeds, turning messaging into a money maker could be a huge win for Meta.