Canox HK - Mark Zuckerberg is refocusing his efforts on another company with a large user base

SHEUNG WAN, Hong Kong - March 21, 2023 - PRLog -- Before META's virtual reality headsets and metaverse software become a significant source of income growth, Zuckerberg believes WhatsApp still has a lot of space to develop. The corporation paid $21.8 billion in shares for the SMS app in 2014, when META was still known as Facebook. While it has continued to build its user base, it has not generated much income.

This may be changing as Zuckerberg and his company look to the massive user base for revenue as its core advertising business slows.

During the third-quarter results call last month, management shared some fascinating WhatsApp details with investors.

According to management, North America is now WhatsApp's fastest-growing area. However, it is unclear whether this is due to saturation in other regions of the world or an acceleration in North America. Nonetheless, the announcement indicates that there is still space for expansion in this tremendously important industry, and management plans to pursue it.

Another fresh revelation was the influence of WhatsApp on businesses' click-to-message advertisements on Facebook and Instagram. In the third quarter, the yearly run rate on those advertising topped $9 billion, with click-to-WhatsApp accounting for $1.5 billion of that. Furthermore, WhatsApp sales increased by 80% year on year.

The click-to-message advertisements alone have a lot of potential for development. North America has a far larger market value than other regions such as Europe or Latin America. Last quarter, Facebook's average revenue per user in the United States and Canada was $49.13, compared to $14.23 in Europe and $3.21 in the Rest of the World. So, simply increasing the North American user base should aid revenue growth.

Furthermore, the ability to directly link businesses and customers has risen in value due to the Apple Inc. (AAPL) iOS privacy upgrade, which had a negative impact on ad income for most social media sites. This should result in a shift in corporate attention toward ad solutions such as click-to-message and the development of best practices for turning those advertising into revenues. As a result, average ad pricing for the format should rise, as will WhatsApp's role in Meta's advertising ecosystem.

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