Meta's WhatsApp and Threads: A $25 Billion Ad Goldmine Driven by Engagement and Scalability

Meta is on the cusp of a monumental shift in its advertising revenue model, with WhatsApp and Threads poised to become two of its most lucrative platforms. According to a report by BarclaysWhatsApp, Threads could drive $25B ad revenue boost for Meta^[1], . This isn't just a numbers game—it's a strategic masterstroke that leverages user engagement, AI-driven ad optimization, and a non-intrusive monetization approach to scale revenue without alienating users.

WhatsApp: The 1.5 Billion DAU Engine

WhatsApp's monetization strategy is a textbook example of balancing user trust with commercial ambition. By introducing ads in the Status feature and the Updates tab, . These ads are designed to be non-intrusive, avoiding personal chats and calls, and are targeted using limited data such as location, language preferences, and channel-following behaviorMeta to monetize WhatsApp with ad integration in 2025^[2]. This approach mirrors the success of Instagram Stories, where ads blend seamlessly with user-generated content.

The platform's scalability is further amplified by paid channel subscriptions, which allow businesses and creators to monetize exclusive content. . With payment integrations via Stripe and PayPal, WhatsApp is transforming from a messaging app into a commerce hub. , a figure that could rise as international markets mature.

Threads: The High-Monetization Text-Based Powerhouse

While WhatsApp's strength lies in its massive user base, Threads is the underdog with higher per-user monetization potential. Launched in July 2023, , . Its ad rollout, which began in early 2025, features image-based “sponsored” posts in the home feed, accessible via Meta's Ads ManagerThreads Ads Now Open to All Meta Advertisers^[5]. The platform's AI-powered inventory filter (with “Expanded,” “Moderate,” and “Limited” tiers) ensures brand safety, while user controls like skipping or hiding ads enhance the experienceThreads Ads Now Open to All Meta Advertisers^[5].

Threads' competitive edge lies in its geographic mix. Unlike WhatsApp, which dominates emerging markets with lower CPMs (cost per thousand impressions), Threads' user base skews toward higher-per-capita ad revenue regions. , making it a more lucrative platform than even Facebook and Instagram in some markets. With CEO Mark Zuckerberg envisioning 1 billion usersThreads Ads Now Open to All Meta Advertisers^[5], .

The AI-Driven Ad Infrastructure: A Game Changer

Meta's ad scalability isn't just about user numbers—it's powered by cutting-edge AI systems like Andromeda (ad retrieval) and GEM/Lattice (ad ranking). These tools optimize ad delivery by predicting user engagement and dynamically adjusting inventoryWhatsApp, Threads could drive $25B ad revenue boost for Meta^[1]. For instance, WhatsApp's Status ads use Andromeda to serve ads between user-generated stories, maximizing visibility without disrupting the flow. Similarly, Threads' AI-driven relevance scoring ensures ads align with user interests, boosting click-through rates.

The results are already showing up in Meta's financials. In Q2 2025, , . , Meta is uniquely positioned to scale WhatsApp and Threads without cannibalizing existing platforms.

Risks and Rewards

Critics may argue that ad saturation could harm user experience, but Meta's approach—limiting ads to non-core features and maintaining ad-free personal chats—mitigates this riskMeta to monetize WhatsApp with ad integration in 2025^[2]. Additionally, the integration of payment systems and commerce tools (e.g., WhatsApp Business API) creates a flywheel effect, where ads drive subscriptions, which in turn drive more ad spending.

For investors, the key takeaway is clear: Meta's WhatsApp and Threads are not just incremental ad surfaces—they're strategic pillars for long-term growth. , these platforms could redefine Meta's role in the digital economy, turning messaging and microblogging into billion-dollar businesses.