Match Group

517,000 relationships. 92,000 marriages. 1 million babies. Those impressive stats come from Karl Gregory, Match.com's UK manager and European director. “We've been responsible for all of those,” he says, understandably proud. “Isn't it incredible?”

It is incredible, and not just because of all the zeroes on those numbers. Match.com is also the most popular dating website in the world and, on top of that, it's one of the oldest. This year it's celebrating its 20^th birthday.

When Match launched in April 1995, it had only 100,000 users worldwide. Today, that number is 75 million users (registered since inception) spread across 40 countries. It all goes back to December 27, 1992 when, dissatisfied with traditional dating methods, entrepreneur Eric Klien created a 170-point questionnaire to game the system. The questionnaire covered everything from horoscopes, to music tastes, to cleanliness. He dubbed it the “Electronic Matchmaker” and uploaded it to his private internet database. Online dating was born.

In 1993 Klien sold his questionnaire and the domain name Match.com. The buyer was Gary Kremen, a Silicon Valley entrepreneur who paid $2,500 for it and launched Match as a dating service on the open internet in 1995. “Match.com will bring more love to the planet than anything since Jesus Christ,” he said during an interview.

He may have been right. Though stigma was high in the early days of online dating, 100,000 people registered with Match.com within 6 months of its launch. The next time it was sold (in 1998 to its current owner, IAC), it was for $50 million. Not bad for just a few years of growth.

Klien's original questionnaire is still part of the service, though it's evolved over the years. Now it's known as “Synapse,” the official Match.com algorithm. It evaluates both a user's stated preferences and their actions on the site, offering 6 tailored profiles for review each day. There is some debate about whether dating algorithms have any scientific credibility, but those big numbers at the top mean Match must be doing something right.

These days, Match.com's biggest user-group is aged 25-44 with its fastest growing demographic being the over-55s. There are more men than women on the site, but only slightly. Amongst men, the most common professions are engineering, finance and retail. Amongst women, it's secretaries, teachers and doctors. All sexualities are represented, as are all kinds of relationships. There are people looking for flings, for friendships, and for life-long partners. All these users do a lot of communicating, they send out over 415 million emails a year on Match.com.

Marriages that begin online are 25% more likely to last than marriages that begin in more traditional ways, said a University of Chicago study, so here's to 20 more years of magic from Match.com. To find out more about this service, please read our review of Match.com

While Tinder is looking for ways to increase its revenue stream with new premium service Tinder Plus, it is steering clear of any advertising that affects its service.

Although the company has strategically lent its brand to clever marketing campaigns - like Gillette’s facial hair survey and Domino’s Pizza Valentine’s Day campaign – they have avoided advertising that would compromise the app experience for users. Namely, in-app advertising.

The Gap however, decided that Tinder was the perfect fit for its new social media-inspired ad campaign: #SpringIsWeird, which included in-app advertising on Tinder. The campaign featured fake “profiles” of the Gap logo with messages including “you’re invited to the pants party” and “we’re taking 30% off all Gap denim,” which would appear when users were swiping through potential matches on the app. The Gap also created a “micro series” on Instagram as part of the campaign.

The Gap announced their campaign to a reporter for AdWeek in a story he promoted on Twitter after it was posted. But Tinder never approved the campaign, and apparently did not know it was happening.

In a tweeted response to the AdWeek reporter, Tinder’s VP of Communications & Branding, Rosette Pambakian, responded: “@GarettSloane we will be deleting those GAP profiles. It violates our TOS. We did not approve this campaign and it is not an ad.”

Trishna Nichols, The Gap’s leader of consumer engagement and brand strategies, described the campaign to AdWeek before the fallout: “We did a little something special on Tinder. It's a guerrilla [marketing] idea where you'll see a profile with clever messaging in the spirit of love and the perfect match. It's the perfect fit for Tinder.”

Unfortunately, the campaign wasn’t a fit for Tinder, and The Gap had never received authorization to post the ads. Tinder’s terms of service state that the service is "for personal use only" and that users may not use the service or any content contained in the service for "advertising or soliciting any user to buy or sell any products or services not offered by the company."

Other companies have done guerilla marketing on the app before, such as in 2013 when USA Network was promoting their show “Suits.” Advertisers for the show posted profiles of the show’s characters on Tinder, and they were not taken down. But now that Tinder is gearing up for creating new revenue streams, it could be that they will be cracking down harder on this type of “organic” advertising.

For now, The Gap will be moving forward with the campaign via social media, releasing an episode a week of its micro series on Instagram.

IAC released its Q4 2014 financial results at the beginning of February, reporting a 9% decline in profit for the fourth quarter from last year. Though revenue growth was in double digits, it was offset by higher expenses that ultimately led to the decline in profit. On the plus side, both revenue and adjusted earnings per share for the quarter beat analysts' estimates.

Here are some of the highlights from the report:

More than one in ten Americans have used a dating app or online dating service of some kind, according to a recent study from Pew Research. And dating apps are only increasing in popularity.

But despite peoples’ love of technology, online daters don’t seem to be finding what they want, and are not so satisfied with the dating app experience. No matter how many new apps hit the market, it seems the inherent problems with online dating (lying, old photos, bad behavior) – are still lingering, and affecting the overall user experience.

People tend to be more critical of dating apps than any other type of app, according to a recent report from Applause, which aggregates app ratings.

According to their report, dating apps consistently rank lower than almost any other kind of app available in stores to download. According to MarketWatch, “while the average app quality score in the U.S. is 67 out of 100 points across all categories, for dating apps, that number is 42 out of 100 — the lowest average score across categories.” The study looked at 53 different dating apps, all of which had more than 1,000 reviews.

While many people may blame apps for their poor online dating experience, the fact that the overall market is leaving people unsatisfied is telling. Online dating is a business, but one that involves people – who can be unpredictable and emotional, especially when it comes to dating.

For one thing, the currency of dating apps are people, so these apps must have a large database with a variety of choices to even compete with some of the major players like Tinder. If people receive the same matches over and over, or somehow “run out of options,” the dating app can be perceived as less valuable than other dating apps. Also, if a dating app user doesn’t like his matches, he’s likely to give it a lower rating, as opposed to others who have a good or even mediocre experience.

Of course, there are other things to consider when it comes to why dating apps aren’t faring so well among users. Some are annoyed with having to pay for special features, or when in-app advertising interrupts the service itself.

Surprisingly, Hinge and eHarmony – two online dating apps that emphasize the quality of their matches – scored low on overall user satisfaction, at least according to their ratings. They both earned an average score of 22 out of 100, and ranked as two of the 10 worst dating apps. OkCupid however, earned 62 points out of 100, putting it in the top 10 category with Skout and Let’s Date. Tinder ranked in the top 20, despite the many complaints and its reputation for being a “hook-up” app.

So what does this mean for online daters?  I guess we’ll have to see how dating apps evolve.

Turns out, Valentine’s Day is not just about couples, hearts and chocolates – it’s about swiping left and right with your dating app to see who's out there. Singles are optimistic about love on this particular holiday - and are saying yes more often to potential dates.

According to popular dating app Tinder, activity from users on Valentine’s Day this year surpassed any day since its launch back in 2012 – that is, the total number of swipes, messages, and matches were at the highest count in the app’s history.

The increased activity in advance of Valentine’s Day began on February 6, leading up to the all-time high on V-Day itself. Overall usage ticked up 7 percent week-over-week from the last couple of years, resulting in a 15 percent increase over the company’s long-term trends. Message activity was up 5.2 percent week-over-week, and matches were up by 6 percent.

Vanity Fair reported that the company found a 60 percent increase in matches per user who logged in to the app on Valentine’s Day from the previous Saturday. Unfortunately, the love didn’t last – user activity was back to normal by Sunday February 15th. It seems the pressure of romance’s biggest day contributed to the app’s popularity, but fizzled out just as quickly. It is also interesting to note that more men were on the app than women on Valentine’s Day, perhaps a reflection of Match.com’s latest “Singles in America” study, where they found that men were much more likely to believe in love at first sight than women.

Critics have been quick to point out that Tinder users are primarily looking for last-minute hook-ups, which might explain the Valentine’s Day craze. The company’s founder Sean Rad however, disagrees – noting that people go to bars and clubs all the time looking for potential for hook-ups. So why choose Tinder? According to Rad, Tinder is helping people overcome the challenge of approaching a stranger to say “hi” because the app makes it less intimidating, and the sting of rejection isn’t quite so high.

“People don’t realize this, but we’re an order of magnitude bigger than any other dating app,” Rad told Vanity Fair. “You really have to ask yourself, if that’s the critique of Tinder, are you critiquing Tinder, or are you critiquing society?”

Tinder is rolling out its new premium service Tinder Plus in the U.S. in March, which will allow paying members to go back and rekindle things with someone they initially rejected, and let users browse through profiles of people in other cities. The new service has already rolled out in the U.K.

A new "Dating Services in Canada Market Research Report" has been released in January 2015 by IBSWorld. The report requires payment to read the entire thing (no less than $725 US) but they did release a few interesting statistics for promotion that are worth mentioning.

According to IBSWorld the dating industry in Canada grew 6% from 2010 to 2015. They feel this rate is low due to the recent recession but the rate of growth is expected to increase in the next 5 years.

In Canada there are 255 businesses in the dating industry that employee 523 people. On average this means every dating business employees 2 people. In my experience the case more likely is that most of the businesses employee 1 person (the owner), a few probably employ 2 to 5 employees, and the very few employ 5 or more. The reason for such a low number of employees and high number of businesses is the relative ease and extreme low cost required to get into the dating industry. Free dating site software can be found online and web hosting can be found as cheap as $5 a month.

The report also mentions that revenue generated by the dating industry for the year in Canada is $153 million. This seems rather good especially with 255 businesses which would suggest that on average each generated $600,000 in revenue. This is not the case either. Most of these dating businesses probably either make virtually no money or only generate a few thousand a year in ad revenue. A few probably generate 10's of thousands, and even less generate hundreds of thousands or even a few million. I believe the majority of this revenue is made up of one dating site, Plenty of Fish. POF is located in the province of British Columbia, Canada. All of the other popular dating services are based in the United States. POF is a private company and no revenue numbers have ever been officially released. That being said they are one of the most successful dating sites in the world so I am sure their revenue for a year is probably 10's of millions of dollars. For comparison just take a look at the Match.com dating site. They are a public company owned by IAC and they reported the Match Group earned in the fourth quarter of 2014, $241.5 million US. That is only for 3 months so in a year they generate around 1 billion dollars. Now the Match Group is made up mostly of paid dating sites while POF is a free service which generates revenue from ads as well as paid upgraded memberships. I don’t expect POF to earn hundreds of millions every year but as I said, with their traffic I do see them earning 10’s of millions.

Is this latest IBSWorld report worth getting? It definitely would be an interesting read but the thing with the dating industry is that it is global. If you are opening a dating service you usually don’t just target one country. You would target continents as a whole like North America or Europe. If you are considering purchasing the document I would probably hold off and wait for the US version to come. The US is 10 times the size in population of Canada which is a much bigger customer base.