WhatsApp is Launching Ads on its Platform But How Prepared are Indian Marketers?

• In the last few years, WhatsApp has established itself as the primary private messaging platform across the world
• The data miner of our industry - Facebook, announced that it will start throwing advertisements on WhatsApp status/stories section soon
• Brands such as Tinder, McDonald’s, Tide, Reebok and Zomato had already found a backdoor to advertise on WhatsApp but now experts think direct WhatsApp ads will untapped avenues for brands

In the last few years, WhatsApp has established itself as the primary private messaging platform across the world. The data miner of our industry - Facebook, announced that it will start throwing advertisements on WhatsApp status/stories section soon.

Brands such as Tinder, McDonald’s, Tide, Reebok and Zomato had already found a backdoor to advertise on WhatsApp, the most-used messaging app, through quirky stickers and GIFs. On top of that, WhatsApp announced last week that its user base has grown by 200%, with 400 million users hailing from India. And now that WhatsApp ads will finally be a reality, we spoke to experts to find out what this means for marketers and consumers, and how will they leverage the new medium of advertising.

“Whatsapp advertising is the most awaited ‘Out Now’ news in the digital advertising space. Currently, brands are making an entry into the Indian consumer’s favorite chat app through stickers and gifs, aligned with the primary purpose of the app: chatting. Ads in WhatsApp stories is an expected move. It will be interesting to watch how its mothership Facebook integrates it - into its existing advertising offering,” said Harikrishnan Pillai, CEO & co-founder, TheSmallBigIdea.

Rahul Shenoy, Sr. Brand Services Director – Digital, FCB Interface says it will open untapped avenues for brands.

“The launch of WhatsApp ad services will provide marketers with new and untapped avenues to engage with their customers. From promotional offers, contest alerts to new launches; brands will be able to use WhatsApp to advertise their offerings to potential customers. This will enable them to not only get discovered quickly, but also help drive business directly via the platform.”

While the messaging application has been infamous in the past for spreading fake news, experts believe that this viral potent, if used wisely, can be a boon for marketers.

“Given the cultural dynamics of India, WhatsApp, by its very virtue, has turned into a forwarding platform. The key, therefore, is to capitalize on this insight and create branded content that has the potential for high shareability. Subtlety is the key,” said Sahil Vaidya, Co-Founder, The Minimalist.

Vaidya thinks brands that cater to Tier II cities and beyond, should not miss riding on this bandwagon.

“With the highest number of WhatsApp users coming from India, it's critical for brands to wake up to the reality that Whatsapp will be an important channel for their marketing mix. However, it is much more effective for a certain category of brands- the ones that are targeting India 2.0 (popularly used to refer to the rising class of people from Tier II and Tier III). With a significant majority of DAUs coming from that demographic, every brand looking at capitalizing on this new consumer class should use Whatsapp for product communication.”

Sonal Jhuj, Vice President- Strategy, DDB Mudra Group says WhatsApp is ‘deeply personal and convenient. Hence, brands will have to find a way to work with that reality.’

When asked who will be the early adopters of this trend, Jhuj said the large user base can attract brands from even unexpected categories. “Similar to Instagram, personal care, fashion, SMEs are likely to be early adopters who will be more willing to test and learn. Though with the sheer reach of Whatsapp, I wouldn’t be surprised to see retail, telecom, and finance jump on.”

Pillai answers, “Chat Feature is at the core of a product like WhatsApp. So as an advertising platform, brands with radioactive levels of consumer interactions/queries leading to purchase would benefit from it. Electronics, automobile, real estate, banking could be some of the sectors. Also due to its sharp targeting, it’s a fabulous, upselling/cross-selling platform. Also brands with content at their core like broadcasters will be a big beneficiary.”

Experts also highlighted some of the challenges that marketers could face and how they could be prepared to face them.

Shenoy thinks replication and constant nagging might lead to ad fatigue.

“Brands have a tendency to replicate messages across platforms. If your customer has seen the same ad on their Facebook and Instagram feed, it could lead to ad fatigue. Also frequent and irrelevant messaging could result in blocking, which would prevent you from contacting your customer in the future. Hence, the key to using WhatsApp ads effectively will be to customize ads for the platform and measure your interactions with customers so that each message you show them has value,”

According to Vaidya, the challenge will be for ‘smaller brands who can't undertake any marketing activity without a clear view of the ROI’. “Since WhatsApp is not built as a platform for advertisers, culling out the KPIs of any activity isn't feasible and might therefore not blow up as a medium of choice ubiquitously,” he explains.

However, the biggest challenge of all is that WhatsApp is a personal messaging application. After the ads are beta-tested and executed, it might drive away consumers to competitions like Telegram, ShareChat. Even when Facebook bought WhatsApp in 2014 for $19 billion, it had promised its audience an ad-free usage for the first five years. Now the platform has developed a very personal and friendly image, can introducing ads be perceived as intrusive by consumers?

Shenoy denies. “Since WhatsApp ads will be shown only in the stories section, the core messaging functionality of the platform will continue to be non-intrusive & personal. Users will be able to swipe up on these stories to explore the links, only if they choose to. Considering WhatsApp is more personalized than other social media platforms, brands will have to make their promotions more interactive and personalized to prompt users to engage with them,” he says.

Jhuj says there will be concerns initially but consumers will eventually evolve.

“Consumers are always going to be open to something that makes life richer or easier. Advertising that does either will do just fine, no matter how personal a medium WhatsApp may be considered to be. So it's for brands to find the balance.”