WhatsApp announced yesterday that it will now show ads from businesses through its Stories-like feature, months after adding an unnecessary floating AI button to the main chat interface. In response,

The ads will be shown to users only within WhatsApp’s “Updates” tab to separate them from people’s personal conversations.

WhatsApp is rolling out new ad features including a subscription model that will allow channels to offer exclusive content for a monthly fee.

They will appear in only one part of the Meta-owned messaging service, it said. The move is potentially lucrative, while raising questions about user privacy.

Industry experts say WhatsApp ads do not violate privacy norms, while privacy advocates argue they breach user privacy principles.

The cofounders of WhatsApp resisted ads in the app for years, including after the company was acquired by Meta for $22 billion in 2014. Brian Acton and Jan Koum left the company in 2017 and 2018, respectively, and on Monday Meta introduced ads in the “Status” feature as well as sponsored Channels in the the “Updates” tab of WhatsApp.

An Evercore analyst notes that Meta has a strong track record with its monetization initiatives across brands.

Key Takeaways Shares of Meta Platforms got a boost Monday as the tech giant announced plans to introduce paid advertising to WhatsApp, opening up a new revenue stream. After reclaiming the 50- and 200-day moving averages,