WhatsApp Status ads to help brands reach more audiences in smaller cities

Experts say WhatsApp ads will boost access to Tier II & III audiences, with cautious optimism on ROI and privacy concerns; D2C, BFSI and EdTech brands to benefit early

WhatsApp Status advertisements are expected to boost brand and advertiser reach, especially in Tier-II and -III markets, with some industry experts anticipating an increase in advertising budget allocation for Meta Platforms. 

 

  This comes after Meta — the parent company of Instagram, Facebook, and WhatsApp — added, for the first time, a feature that allows businesses to run advertisements directly on WhatsApp. In contrast, Instagram and Facebook have long offered advertising features.

 

According to advertising industry experts, brands in sectors such as direct-to-consumer (D2C), fast-moving consumer goods (FMCG), banking, financial services and insurance (BFSI), microinsurance, education technology (edtech), healthcare, and quick commerce are expected to benefit from WhatsApp Status advertisements.

 

In the near term, Harikrishnan Pillai, chief executive officer and cofounder of TheSmallBigIdea, a creative digital marketing agency, anticipates most brands will allocate 5–10 per cent of their existing Meta budgets towards experimental spending.

 

Saheb Singh, director of strategy at Agency09, an advertising agency, expects budget reallocations from local and regional ad spends, especially by brands or advertisers targeting Tier-II and -III cities.

  They also noted that, compared to Instagram Stories or Reels and Facebook’s short videos, advertisements on WhatsApp Status may not yield an immediate spike in return on investment. 

 

Meanwhile, Uday Mohan, chief operating officer (COO) of Havas Media Network India, said it’s less about reallocating budgets across platforms and more about unlocking a highly addressable new segment within the same user base.

 

The messaging app will feature sponsored labels on channels that pay to boost visibility among users, said Sandeep Goyal, chairman of Rediffusion. Status updates have become popular among WhatsApp users, and he explained that the platform is clearly positioning this as a new way to push advertisements to subscribers.

 

“It’s particularly compelling for regional, vernacular, and trust-based categories like D2C, BFSI, and edtech, and early tests show it delivers 20-30 per cent lower cost per mile than Instagram Stories in these clusters,” said Pillai.

 

He also said that WhatsApp Status advertisements offer brands a powerful new surface — especially for reaching users in Tier-II and -III cities, where WhatsApp enjoys over 90 per cent penetration and deep daily engagement. He emphasised that with more than 500 million active users in India and over 80 per cent viewing Status updates daily, the platform provides unmatched access to audiences who are either underexposed or under-engaged on Instagram and Facebook.

 

“WhatsApp’s entry into the advertising ecosystem is a natural evolution, especially considering its scale, daily utility, and stickiness in India,” said Mohan. “However, this doesn’t necessarily mean a shift or cannibalisation of advertising spends from Instagram or Facebook. After all, these platforms — along with WhatsApp — belong to the same Meta ecosystem.”

 

He added, “This makes it a strategic addition to Meta’s overall offering, helping brands reach audiences in a more direct and contextual manner, particularly in Tier-II and -III markets.”

 

On similar lines, Singh agreed with others on the potential exposure in Tier-II and -III cities, and said that WhatsApp Status advertisements create an opportunity to tap into one of the largest and most connected user bases in the country.

 

“While using other social media is often a choice, being on WhatsApp is almost a compulsion — this fills a massive targeting gap. Also, unlike Instagram or Facebook, WhatsApp users often engage more attentively with content from close contacts. This gives brands a chance to stand out, particularly with hyperlocal campaigns,” he said.

 

At the same time, experts cautioned that brands must tread carefully when advertising on WhatsApp, as it is largely seen as a private digital space used to chat with friends and family.

 

“User perception is the make-or-break factor here. The biggest asset WhatsApp holds is trust — it’s where people talk to family, close friends, and conduct sensitive transactions. If advertising disrupts that sanctity, it could face backlash. Therefore, brands must tread carefully. Consent-led marketing, relevance, and non-intrusiveness must be the pillars. Brand safety and data privacy frameworks need to be clearly communicated by Meta, and we expect that to evolve quickly with advertiser feedback,”

said Mohan. 

Ad-vantage Meta

*  Havas Media Network India sees WhatsApp Status ads unlocking a new, addressable segment within Meta’s user base

  *  Advertising industry experts say the feature may not deliver immediate RoI like Instagram Stories and Reels, or Facebook videos

  *  Sectors like FMCG, BFSI, D2C, edtech, healthcare, and quick commerce are expected to benefit from this feature