Tag: WhatsApp

  • What makes WhatsApp & Facebook rule Indian Youth

     

    By Delshad Irani & Shephali Bhatt

     

    Her eyes shut still, she grapples around for the phone every morning. Then swipes to turn off the alarm and swipes some more to fire up apps — WhatsApp and Facebook, followed by Twitter and Instagram, in no particular order. They’re also the last things she sees before REM sleep. She is most millennials and Gen-Z, whose oldest members are barely 18. (If you do none of those things, then you are probably made of sterner stuff or are from another century or don’t own a smartphone. Take your pick.)

     

    Social media has altered the very fabric of human interaction, be it social or for commerce, for better or worse. A well-established fact, that. Facebook has helped us stay connected and find distant friends to give them an opportunity to marvel at our daily musings, accomplishments, babies, pooches and exciting lives, in general. It is also responsible for a spike in personality disorders and unhappy marriages, according to a study by a British legal firm. Incessant scrolling on Facebook has forever reconfigured the anatomy of the human index finger. There are 55 million daily active users (DAU) on Facebook and 49 million on mobile in India. The number’s a tad higher globally — 936 million DAU. And then a little over a year ago the biggest social network on the planet acquired instant messaging app WhatsApp for a mad sum, $19 billion, if we’re being precise.

     

     

    WHATSAPP & FACEBOOK: A TALE OF TWO NETWORKS

     

    We asked twenty-something Ruchika Sapehiya, senior producer, Ping Network, what she’d think if WhatsApp started letting advertisers advertise on the messaging service. “It won’t work. Because it’s too personal. It’s bad enough when I get bombarded by 100 photos from a furniture brand and have to block the user. Of course, if it doesn’t feel intrusive or a violation of my privacy that’s another matter.”

     

    WhatsApp founder & CEO Jan Koum in a blog post titled ‘Why we don’t sell ads’ wrote: “Advertising isn’t just the disruption of aesthetics, the insults to your intelligence and the interruption of your train of thought. At every company that sells ads, a significant portion of their engineering team spends their day tuning data mining, writing better code to collect all your personal data, upgrading the servers that hold all the data and making sure it’s all being logged and collated and sliced and packaged and shipped out… And at the end of the day the result of it all is a slightly different advertising banner in your browser or on your mobile screen. Remember, when advertising is involved you the user are the product.”

     

    On the other hand, according to company sources, Facebook has two million active advertisers, up from one million a year and a half ago.

     

    Facebook, of course, has its own app called Facebook Messenger. However, WhatsApp, with its monthly active user base of 800 million (of which an estimated 10 per cent is in India) is the one app to rule them all. According to the company, the fastest growing markets are Brazil, India, Mexico and Russia. Besides stream of consciousness texting, over half a billion active users are sharing more than 700 million photos and 100 million videos every single day. WhatsApp’s arrival and subsequent proliferation has rung the death knell for traditional SMS and it’s only a matter of time before the dancing girl in the red dress, a popular WhatsApp emoji, does the polka on its grave. To make matters grimmer than Wilhelm for traditional forms of communication, not two months ago, WhatsAppers began calling each other via the app. Hell, its usage and scope are expanding way beyond our wildest expectations. For instance, recently a sub-inspector in Kanpur send his resignation via WhatsApp.

     

    Says Ankita Chemburkar, senior writer, iContract, who, by her own admission, spends 16 of her 18 waking hours on Facebook and WhatsApp, scrolling and searching shareable content and chatting with multiple groups; “The last time I had a conversation via SMS was perhaps one or two months ago.” Says 27-year-old marketing professional, Mitali Bose, “WhatsApp is something I can’t do without. It’s the easiest way to stay in touch with people. Of course, I’ve stopped calling and talking to people for it’s easier to message and be done with it.” It’s highly unlikely people will give up on conventional chats altogether, though.

     

    Today, WhatsApp and Facebook are the No.1 and No.2 Most Exciting Brands in this country, respectively. Keeping them company in the Top 10 are five other communication brands, ranging from mobile handset manufacturers to telecommunications — Vodafone, Airtel, Samsung, Apple and Idea. Add Google (at No.5) and its video platform, YouTube (at 11), and it’s clear that no longer are traditional brands, the doyens of FMCG or the cola companies, for instance, top of mind for large populations of upwardly mobile teens and twenty-somethings. But there’s only so much excitement detergents can lather up in our humdrum lives, really. Besides a direct comparison between WhatsApp and Dove or Pantene would be as unfair as excessive humidity on perm day. Furthermore, as Karthik Srinivasan, national head, Social@Ogilvy, points out, “Facebook is something you’re checking day in and day out. WhatsApp penetration in India is phenomenal. The app is predictable, reliable. What makes them exciting are actually the people on it. So the medium isn’t directly communicating to the end user.”

     

    The fact is people do not see Facebook, WhatsApp and their ilk as brands and commodities. “It’s an intrinsic function of daily life, an extension of myself. People don’t perceive them the same way they do Pepsi or Airtel, for instance,” says Samyak Chakrabarty, chief youth marketer, DDB Mudra Group, “The excitement comes from continued utility and these platforms’ ability to constantly reinvent the product or aspects of it.” What traditional brands ought to take away is just that — constant reinvention of brand and product can be a virtue sometimes and not a marketing sin. Says Suman Srivastava, founder, Marketing Unplugged and chief strategy officer, FCB Ulka, “Earlier, there used to be this Levers’ Way of Advertising. While Unilever may have abandoned it decades ago, I see some brands are discovering it only now. Someone has to tell them all the dependence on regressive research is not going to work. Look at Facebook. The social media platform has been panned every time it’s tried to do something unpredictable. Like launching the IPO, for instance. And Facebook has been constantly proving its critics wrong.”

     

    The bottomline is: Let necessity no longer be the mother of product or marketing innovation. Meanwhile, marketers would do well to come up with ways to seem less like a brand and more like a pal. Or Facebook friends.

     

    Source:The Economic Times

    Copyright © 2015, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • Chill! Facebook won’t let WhatsApp lose its mojo

     

    By A Correspondent

     

    Diehard Whatsapp loyalists needn’t worry about the Facebook impacting the messaging platform. Like it happened post its Instagram buy, WhatsApp’s brand will be maintained.

     

    On Wednesday, Facebook announced it had reached a definitive agreement to acquire WhatsApp, the rapidly growing cross-platform mobile messaging company, for a total of approximately $16 billion, including $4 billion in cash and approximately $12 billion worth of Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over four years subsequent to closing.

     

    WhatsApp, according to a Facebook communiqué, has built a leading and rapidly growing real-time mobile messaging service, with:

    • Over 450 million people using the service each month;
    • 70% of those people active on a given day;
    • Messaging volume approaching the entire global telecom SMS volume; and
    • Continued strong growth, currently adding more than 1 million new registered users per day.

     

    “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg, Facebook founder and CEO. “I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected.”

     

    Jan Koum, WhatsApp co-founder and CEO, said, “WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We’re excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world.”

     

    According to a communique, Facebook fosters an environment where independent-minded entrepreneurs can build companies, set their own direction and focus on growth while also benefiting from Facebook’s expertise, resources and scale. Whatsapp’s headquarters will remain in Mountain View, CA; Jan Koum will join Facebook’s Board of Directors; and WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications.

     

    Neeraj Arora: The man who played key role in WhatsApp’s rise

    From the WhatsApp blog:

     

    By Anumeha Chaturvedi

     

    Neeraj Arora says he is responsible for “all things business at WhatsApp” and considers himself “generally a good guy” on his website. His friends and batchmates agree, at Indian School of Business, where he earned a management degree.

     

    From Times Internet to Google to WhatsApp, Arora has had an uncanny ability to identify opportunities, said Mohit Garg, co-founder of training software firm MindTickle and a batchmate at ISB. “He is well-connected and this has helped him move up the ladder. He’s also very unassuming and down-to-earth.”

     

    With Facebook buying WhatsApp for $19 billion, Mr Arora, the vice-president for business development, is likely to be a very prosperous man indeed although everyone is tightlipped about just how prosperous.

     

    “I feel great” was all that Mr Arora, 35, would tell about the financial implications of the deal for him.

     

    “His career really took off with Google, where he was also thinking of either launching a startup or funding one,” said Shameek Chakravarty, director of product management at Yahoo, who was also the president of the entrepreneurship and venture capital club at ISB.

     

    When Mr Arora went to Mountain View, his role involved hunting down startups for Google and that meant meeting and connecting with numerous people in the Silicon Valley to understand what was happening in the market, Mr Chakravarty said.

     

    “It was not an engineering role and meant forging crucial connections with people in the Valley.” He joined WhatsApp in November 2011 when it had about 10 employees. He was specifically recruited for his corporate development background at Google. Text messages are the most costly form of data transfer and his role meant travelling to different geographies to connect with phone firms to negotiate SMS rates (users get an SMS after downloading WhatsApp; 450 million users means 450 million SMSes) and striking distribution arrangements and partnerships with them.

     

    “Over the years, we have connected to discuss how I should manage my startup, which I sold in 2012,” Mr Chakravarty said, adding he had even told Mr Arora that WhatsApp would make a really good exit and that he should fund his friend’s startup with his share of that fortune. In May 2013, Mr Arora said in an interview that WhatsApp is very different Google, Facebook or Yahoo.

     

    “Our founders came from Yahoo and they actually saw how the mechanism works with advertising. You have to collect a lot of data to have targeted advertisements. It’s a very strong stance that we have taken and I think we are going to stick with it.” Mr Arora, who studied mechanical engineering at IIT-Delhi, met his future wife Ruchi Bansal at ISB. She is a chartered accountant. “He is a really smart guy and had it all — the looks, the brains,” said Shrutkeerti Khurana, another batchmate.

     

    “He always got things done on time, and used to wake us up after finishing assignments. We knew he will go places as he was not a cookie cutter guy, was diligent and knew where he had to reach in life.” Mr Arora said life will not change very much after the blockbuster deal.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

     

    Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody. Nothing else mattered to us.

     

    Today we are announcing a partnership with Facebook that will allow us to continue on that simple mission. Doing this will give WhatsApp the flexibility to grow and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible.

     

    Here’s what will change for you, our users: nothing.

     

    WhatsApp will remain autonomous and operate independently. You can continue to enjoy the service for a nominal fee. You can continue to use WhatsApp no matter where in the world you are, or what smartphone you’re using. And you can still count on absolutely no ads interrupting your communication. There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product.

     

    On a personal note, Brian and I couldn’t be more proud to be part of a small team of people who, in just under five years, built a communication service that now supports over 450 million monthly active users worldwide and over 320 million daily active users. They have helped re-define and revolutionize communication for the 21st century, and we couldn’t be more grateful.

     

    Our team has always believed that neither cost and distance should ever prevent people from connecting with their friends and loved ones, and won’t rest until everyone, everywhere is empowered with that opportunity. We want to thank all of our users and everybody in our lives for making this next chapter possible, and for joining us as we continue on this very special journey.

     

     

     

    Sanjay Menon, Global Capability Lead and India Marketing Services Lead, SapientNitro:

    “The WhatsApp acquisition will enable Facebook to achieve a wider youth user base in the mobile segment along with access to real users since it is anchored to a phone number unlike Facebook users. There could be a possibility of intersecting data from both for context based promotion or targeting. We might also see a flurry of acquisitions in the wireless messaging/chat segment in the next few months. Typically, one would have imagined a company like Google to acquire WhatsApp since they have the infrastructure to leverage this additional massive consumer base to bolt on from mobile.”

     

    Dippak Khurana, CEO & Co-Founder, Vserv.mobi:

    Mobile is disrupting the dominance of PC Web era companies. Online-first companies are struggling to innovate in the mobile space, as many of them look at it as a mere extension to the PC Web, instead of leveraging it’s unique aspects. Many of the big players have realized this and have rapidly acquiring mobile first companies – for eg. Google acquired AdMob in 2009, while Apple bought Quattro Wireless in 2010 and Facebook acquiring Instagram 2012. The current generation of users is making the mobile their primary screen for living a connected life, so it comes as no surprise that companies are focusing their energies and investing top dollars to have the best mobile experience for their audience.

     

    Facebook’s overarching charter has hinged on ‘connecting everyone’ in the world. Interestingly, the global youth population, a very relevant demographic is slipping away and exploring other social apps outside of Facebook. Estimates show 62% of global teens claimed to be active on Facebook in Q2 2012, which dropped to 51% in Q2 2013, demonstrating that a vital audience is on the decline as far as Facebook is concerned.

     

    On the other hand, Whatsapp is the most successful and fastest growing social communication app. If you compare the growth rate over the first four years, Whatsapp also has the sharpest growth trajectory as compared to other social communication platforms such as Skype, Twitter, Gmail, Facebook etc. Over 450 million people are using Whatsapp every month, and 70% of them are active on any given day. This makes Whatsapp, a strong logical extension to Facebook’s ‘connecting the world’ goal, by helping them develop new mobile experiences which until recently was restricted to the Facebook app.

     

    It will be interesting to see if WhatsApp moves away from its subscription model and adopts advertising. After all, in effect, Facebook is going to be able to have access to 450 million verified mobile numbers, many of whom may not even be on the Facebook app. Additionally with Google pushing Hangouts as a default mobile messaging app, Facebook was forced into doing something in the mobile messaging space and this was the best way to capture that market. This presents a distinctive opportunity for Facebook to garner increased user engagement and a greater fillip to their mobile strategy.