Online dating industry growht
The number of people employed in the field is expected to increase from 15,606 in 2011 to nearly 17,000 by 2016.The growth is fueled by a high profit margin, a low (but increasing) barrier to entry and a falling social stigma against meeting your mate online.Two-thirds of the singles and fling-seekers in America’s online-dating market are older than 34, IBISWorld data show.Pew Research surveys show 45-to-54-year-olds in America are just as likely to date online as 18-to-24 year olds, either because they’re divorced or far from the easier dating scenes of college campuses and first jobs.“The young ‘uns can have it.” The company defended the pricing structure as aimed at accommodating younger “budget-constrained” daters, but analysts have questioned just how many singles will pay up to find an online match.In a February note to clients, Morgan Stanley analysts said the honeymoon period for Tinder’s “casual dating” wouldn’t last for long.
Its first big ad campaign, with Bud Light, was perhaps emblematic of what it can offer millennial-aimed companies: It will allow, as Tinder’s vice president of advertising Brian Norgard told Techcrunch, the dating app to “give that data back to our brands in a really valuable way.” But Tinder’s Plus pricing has also led to blowback for what skeptics called the service’s ageist ways: “I’m not desperate enough to keep using Tinder now that I know it considers me a dried up old hag,” wrote Dani Burlison, a 41-year-old single mother, in .
“There are limits to the percentage of single people who will become active Tinder users and repeating ‘casual daters,'” Morgan Stanley analysts said in a February note to clients.
“And in our view, Tinder is reaching those limits.” EHarmony has not shied away from its reputation as an overbearing matchmaker, slow but comprehensive, with long-term interests at heart.
Though the firm said subscribers are joining at faster rates and staying longer, analysts last year estimated e Harmony’s revenue growth had slowed to a crawl, and was still half that of the Match Group’s, the mix of Tinder, Match and OKCupid that brought in more than 0 million in the U. Many market-watchers have questioned the basic premise of e Harmony and other sites, which depend on long detailed profiles and dedicated algorithms.
Economist Dan Ariely and other researchers have argued that online dating profiles rest on a fatal flaw: They show “searchable” attributes, like job or religion, while ignoring the key details of a dater’s personality: sense of humor, conversation style, etc.
Tinder shook up the dating world, known for its long personality quizzes and profile-based matchmaking, with its ego-boosting, hook-up-friendly, mobile flirting app: Two daters are presented with each other’s photos, and if (and only if) they both like what they see and swipe right, the service hooks them up with a chat box, where the daters can take it from there.