Messaging giant breaks founders’ sacred ‘No ads! No games! No gimmicks!’ promise as it rolls out advertising in Status feature – with fears it will copy Facebook’s hated ‘Pay or Okay’ model
WhatsApp is abandoning its ad-free promise after 11 years, with Mark Zuckerberg’s Meta announcing it will start showing advertisements to its 3 billion monthly users worldwide.
The controversial move marks a dramatic U-turn for the messaging platform, whose co-founder Brian Acton had famously championed the slogan “No ads! No games! No gimmicks!” before Meta’s $19 billion takeover in 2014.
Privacy experts are already sounding the alarm, with European watchdog noyb warning the move could be “clearly illegal” under EU law and predicting Meta will force users into a hated “Pay or Okay” model – where people must pay to avoid ads.
Where Ads Will Appear
Meta announced Monday that advertisements will begin appearing in WhatsApp’s Status feature – similar to Instagram Stories – which is accessed via the Updates tab and used by 1.5 billion people daily.
The company insisted that personal chats will remain ad-free, with advertising confined to:
- Status updates (WhatsApp’s version of Stories)
- Channels discovery section
- Promoted business channels
We’ve been talking for years about how to build a business on WhatsApp in a way that doesn’t interrupt personal chats,” said Nikila Srinivasan, WhatsApp’s VP of business messaging.
Using YOUR Data From Facebook and Instagram
In a move that will alarm privacy advocates, Meta admitted it will use data from users‘ Facebook and Instagram accounts to target WhatsApp ads – if accounts are linked through Meta’s Account Center.
The company will use:
- Your country or city location
- Device language
- Channels you follow
- How you interact with ads
- Data from your other Meta accounts
Privacy campaigner Max Schrems warned: “Without freely given consent, linking data and showing personalised advertising is clearly illegal.
Six-Year Delay After First Announcement
Remarkably, Meta first announced plans for Status ads back in November 2018 – but the rollout was repeatedly delayed amid user backlash and internal resistance.
As recently as 2023, WhatsApp head Will Cathcart publicly denied reports about ads, saying “We aren’t doing this.
The about-face comes as Meta seeks new revenue streams, with CEO Mark Zuckerberg telling analysts that messaging between brands and consumers “should be the next pillar of our business.”
Founders’ Worst Nightmare
WhatsApp’s original founders, Jan Koum and Brian Acton, were famously hostile to advertising and reportedly left Facebook after clashing with executives eager to monetize the app.
Their departure now appears prescient, as Meta implements exactly the kind of advertising model they fought against.
‘Pay or Okay’ Fears
Privacy experts fear Meta will introduce its controversial “Pay or Okay” model to WhatsApp – where users must pay monthly fees to avoid ads.
On Facebook and Instagram in the EU, Meta already charges:
- €9.99 per month on web
- €12.99 per month on mobile apps
“We suspect that Meta will do the same with WhatsApp,” warned noyb, adding that the EU Commission has accused Meta of violating the Digital Markets Act with this model.
Trump Effect?
The timing is notable – Meta’s announcement comes as the company appears emboldened by Donald Trump’s presidency to ignore EU regulations.
Since Donald Trump’s election, Meta seems to have changed course and is openly ignoring EU law,” noyb stated, noting Meta has adopted Trump’s narrative that EU laws are “unfair trade barriers.
Mass Exodus Predicted
Privacy advocates are already predicting users will flee to alternatives like Signal, which remains non-profit and ad-free.
We expect that Meta’s push to show ads on WhatsApp will lead to the next big exodus to Signal,” Schrems predicted.
What This Means for Users
Starting in the coming months, WhatsApp’s 3 billion users will see:
- Ads appearing between Status updates
- Promoted channels in discovery feeds
- Paid subscription options for exclusive channel content
- Targeted advertising based on cross-platform data
While Meta insists personal messages remain encrypted and ad-free, critics warn this is just the beginning of WhatsApp’s transformation into another Facebook-style advertising platform.
Stock Market Celebrates
Wall Street cheered the news, with Meta shares jumping 3% to around $702 on Monday – just 5% below their all-time high.
Analysts project the move could unlock billions in new revenue from WhatsApp, which currently generates an estimated $500 million to $1 billion annually from business tools.
The Bottom Line
After 11 years of resistance, WhatsApp has finally succumbed to Meta’s advertising machine – breaking the sacred promise that made it the world’s favorite messaging app.
As one industry observer put it: “Given that Meta is a data mining, ad-selling platform, introducing ads was inevitable.”
For the app’s 3 billion users, the question now is: will they accept ads in their previously pristine messaging experience, pay to avoid them, or join the predicted exodus to ad-free alternatives?
Image credit: Message apps – © Kārlis Dambrāns, CC BY 2.0, via Wikimedia Commons
