Facebook to introduce ads on messenger, tests monetisation idea globally

Facebook has been working to diversify its revenue base as it expands into new areas by introducing ads on its messenger platform

e4m by exchange4media Staff
Updated: Jul 13, 2017 5:14 PM

Facebook had recently decided to put a cap on the number of ads it is showing on timelines. It said that it is nearing the limit of revenue-based ads being shown on the platform. The social media platform will now show ads on messenger home screens globally as part of its beta programme in a bid to boost revenues. The move, which comes after promising tests in Australia and Thailand, has promised Facebook an even larger bite of the digital advertising revenue pie.


“We had a good start to 2017,” said Mark Zuckerberg, Founder and CEO, Facebook. “We're continuing to build tools to support a strong global community after the first quarter results in 2017.” Speaking about the ad revenues, Zuckerberg said, “Our ads business is doing well too. Total revenue grew by 49% year over year to $8 billion, and advertising revenue was up 51% to $7.9 billion.”


Facebook has been working to diversify its revenue base as it expands into new areas. However, advertising still accounts for the vast majority of revenues, with most of that money made from people connecting to the social network on smartphones or tablets.


Existing Messenger ads include sponsored messages and ads in Facebook News Feeds that redirect to Messenger conversations with a bot or human. Sponsored messages can only be sent to users a company has already had a conversation with.


At WWDC last month, Apple debuted Business Chat to connect customers with businesses. The service, which will allow businesses to make sales or deploy bots in iMessage, is expected to arrive with iOS 11 in the fall or with a later version of the operation system.


At Twitter, a new conversation bot ad unit made its debut in recent weeks, as did bot buttons, as part of the company’s ongoing effort to help businesses chat with customers.


Facebook-owned WhatsApp, with its 1.2 billion monthly active users, announced plans nearly a year ago to begin allowing businesses to chat with customers. Tests with Y Combinator start-ups began in April, according to Reuters, but a public version has yet to launch.


Here is how the ads on Facebook could look:


Given the size of the ads and the aesthetics it only looks like the entire ad service could be an intrusion and yet another space intruded by advertisers. It seems like Facebook is making all the efforts to monetise every platform it owns.

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