For the first time since acquiring messaging platform WhatsApp in 2014, Meta is introducing advertising to the app. 

In a departure from their firm ‘ad-free’ position, Meta announced this week that businesses will now have the opportunity to advertise on WhatsApp in three ways: channel subscriptions, promoted channels and ads in Status.

Concerns over privacy

WhatsApp has faced scrutiny in recent years over its data-sharing principles with parent company Meta in 2021. Now, this latest announcement adds to further questions about how much data will be used and collected.

Away from users’ private messages, ads will be shown in the Updates tab, which was introduced in 2023 and is reportedly visited by 1.5 billion users daily for status updates and channel messages.

Instead of relying on messages, which are end-to-end encrypted, WhatsApp will use the country, city and language of users, as well as the channels they follow and how they interact with other ads to inform which ads are shown. 

Users who have linked their WhatsApp to their Facebook or Instagram will see more personalised ads.

Meta already allows advertisers to run click-to-message ads on Facebook and Instagram that direct users to WhatsApp where they can directly engage with businesses.

Beyond ads, WhatsApp is exploring additional monetisation tools in the Updates tab, such as paid channel subscriptions and promoted channels, conveying a multi-faceted approach to revenue generation.

Where does Australia stand on this change?

Meta has said these changes will slowly roll out over several months. However, it has already been introduced for Australian users who accept its new Terms and Conditions.  

In recent years, the Australian Government has revised its stance on data privacy. Based on recommendations from the Privacy Act Review Report, the Privacy and Other Legislation Amendment Bill 2024 (POLA) made several significant amendments to the Privacy Act 1988 and came into effect at the end of last year.

POLA strengthens privacy protections in Australia by mandating that organisations take both technical (encryption, multi-factor authentication) and organisational (access controls, account deactivation) measures to safeguard personal data, while also introducing a new statutory tort which will allow individuals to seek damages for invasions of privacy.

POLA also grants the Office of the Australian Information Commissioner (OAIC) greater enforcement powers, including the authority to impose direct fines and to mandate transparency around automated decision-making.

This reform comes as Australia rethinks its privacy laws in the face of an ever-evolving digital economic landscape.

Meta will need to tread a careful line with WhatsApp’s advertising rollout. It has already had to disclose in WhatsApp’s privacy policy how ads are targeted and user data is used in order to avoid breaches of user privacy that could result in facing damaging legal action and public backlash.

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