What's up with WhatsApp ads? Beware a consumer backlash, warns Parcelhero

1st July 2025

The messaging platform WhatsApp is introducing advertising for the first time. It could become the perfect ad platform for e-commerce. However, the home delivery expert Parcelhero is cautioning UK sellers to be wary of a consumer backlash if the app is seen to be abandoning its strict privacy rules.

Since its creation in 2009, WhatsApp has become one of the leading instant messaging platforms. Its end-to-end encryption means only the sender and recipient can read messages, making it a highly trusted platform. Today, WhatsApp has around 3 billion users worldwide and 41.4 million monthly users in the UK. With a strong reputation and huge user base, that would seem to make it the ideal platform for advertisers.

However, the home delivery expert Parcelhero is cautioning online sellers and brands to consider the potential consequences of marketing on the app, when WhatsApp's newly announced ad service is rolled out to the UK.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘WhatsApp’s biggest strength could also prove to be its biggest weakness when it comes to advertising. The messaging service has a loyal user base precisely because it is seen as extremely private, secure and non-commercial. In 2012, the company famously said in a blog: "Remember, when advertising is involved you the user are the product."

‘However, that was before the company was bought by Facebook - now Meta Platforms – for $19bn in 2014. One improvement made two years later was to scrap its $1 annual subscription fee. However, that begged the question, how would Meta eventually monetise its substantial investment? Now it seems we know the answer. It’s rolling out advertising to many countries over the coming months.

‘To be clear, users won’t immediately see ads popping up in the middle of their Chats. Instead, WhatsApp says: “Our ads will appear in the Updates tab, in Status and Channels, where people are open to discovery. The personal messaging experience on WhatsApp isn’t changing, and personal messages, calls and statuses are end-to-end encrypted and cannot be used to show ads.”

‘Meta says it has designed the new advertising features with “privacy as the core principle”. Instead of utilising information from users’ messages, WhatsApp will use less sensitive data to target ads. This will likely include users’ locations, the channels they follow and their interactions with other ads. Perhaps most controversially, users of WhatsApp’s Meta Accounts Centre, which links to services such as Facebook and Instagram, may also see more tailored ads based on their activity on those platforms.

‘There’s no doubt that WhatsApp could quickly become a top platform for business-customer interaction. In many ways it already is. Recent research from Virgin found WhatsApp is the most-used communications app for UK companies to conduct business, communicate with customers and send billing messages.

‘It’s already moved beyond customer services and into indirect selling. Businesses can send marketing messages through personal chats if the customer opts in to them, and the platform reportedly has a 45-60% click-through rate.

‘This latest development will give small traders and big brands alike the opportunity to advertise to customers on this popular platform for the first time. The ability to push Status content or gain traction through sponsored Channels will create conversations with users. WhatsApp ads may also help smaller sellers compete more easily with large retailers in a messaging-first environment.

‘However, its ultimate success or failure will depend on whether WhatsApp’s privacy assurances are valid. There is a danger brands using these new features could face a backlash if users lose trust in the app or start to protest against the changes. We’ve recently seen the power of consumer protests. Earlier this year, 9% of US Amazon shoppers said they were participating in a week-long boycott, while a Guardian-Harris poll revealed that a quarter of US shoppers abandoned their favourite stores due to their political stances. Here in the UK, London Economic listed 50 US brands likely to be targeted by UK shoppers in protest against President Trump’s policies.

‘When ads arrive on the app, the user experience should remain largely unchanged, provided people steer clear of Channels and Status. However, it may be a while before we know how UK consumers will respond. Ads will be “rolled out gradually around the world,” says WhatsApp. While the UK is no longer a part of the EU, we remain largely compliant with its General Data Protection Registration (GDPR) legislation. It’s thought that the EU won’t see WhatsApp ads until 2026 at the earliest because of data privacy concerns and that could also apply to the UK.

‘Once they finally do arrive here, however, it will be fascinating to see whether users embrace the new ad features. If users rebel, will they switch to alternative messaging platforms such as Signal that don’t carry ads or will they initiate a boycott of WhatsApp advertisers in an attempt to make Meta change its mind?

‘Conversely, a combination of great delivery options and the creative use of new advertising platforms could help small retailers level the playing field with larger competitors. Ultimately, it's sellers with a combined High Street and online offering that are most protected against changing customer values and unexpected events. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf