Meta Platforms announced the introduction of channel subscriptions, promoted channels, and ads in the WhatsApp updates tab, which has 1.5 billion global users. The company emphasized maintaining user privacy with end-to-end encryption for personal communications while utilizing minimal data such as location and user interactions for targeted advertising. This move aims to enhance META’s revenue, which constituted 97.8% of its total earnings in Q1 2025.
Meta’s advertising innovations, including the Generative Ads Recommendation model, have yielded a 5% increase in conversion rates. The company saw a 34% year-over-year growth in its Family of Apps, contributing $510 million. META’s estimated revenues for 2025 are projected to rise by 11.8% year over year to $179.67 billion.
Competitively, Meta faces significant challenges from Alphabet and Amazon, who are expected to account for nearly 50% of global ad spending by 2028. Alphabet’s initiatives are supported by AI advancements, while Amazon continues to grow its advertising business alongside AWS services.
