Why Whatsapp Is Free? How Facebook Earn Money?

 

Before we get started why WhatsApp is free First, we talk about little bit history of Whatsapp. WhatsApp is free Messaging service started in January 2009 by Former Yahoo Employees Brian Acton and Jan Koum.

Source 1 Source 2

As time passes WhatsApp is getting more popular day by day and start beating facebook chatting feature. Due to that Facebook sees future opportunities in WhatsApp.

Facebook Acquired Whatsapp for $19 billion at 19 Feb 2014.

When Facebook acquired WhatsApp at that time It has the yearly subscription of 1 Dollar. But the developing counties like India, Nepal, Pakistan, Bangladesh here people do not do online transactions for such kind of services they just switch their number.

In the market, lots of competitors are coming so Facebook decided to free the WhatsApp they didn’t take any subscription fee for that.

Why WhatsApp Is Free

So the question arises why Facebook is giving WhatsApp for free is Facebook is doing charity for us No “if you are not paying for the product then you are the product”.

Facebook didn’t earn more amount of money from our subscription that they can earn by using our user data for showing the targeted advertisement for the Facebook audience.

What type of data do they collect?

WhatsApp is Facebook’s product they used to collect the user data like:-

·         Contact list

·         Number of applications installed

·         Which person are you chatting

·         Your location

·         User behaviour

They collect that information by taking permission from you, at the time of installation. They used to agree on permission if you don’t agree then you can’t use the app you should have to agree that permissions.

How Facebook uses our personal data?

Facebook uses our data to show targeted advertisements to us. if we see any product on the e-commerce websites then facebook start showing ads of those products some of the times that’s very annoying.

They also use data for knowing personal choices and behaviour of the person where they live what type of picture they share which person you talk what did you talk, your number of friends everything that Facebook can use for showing targeted advertisements to the user and influence buying behaviour.