Dating Services

If only all breakups ended as well as this one.

IAC/InterActiveCorp announced recently that Match.com, Tinder, OkCupid, and other dating services would become part of their own spinoff unit. The subsidiary will be called The Match Group and will be a publically traded company. Following the news, shares of IAC rose over 5%.

According to the announcement, The Match Group is likely to issue less than 20% of its common stock. The IPO is expected to be completed in the fourth quarter of this year, after which investors will be able to buy stock in the company. So far, the ticker symbol (the three-or-four letter identifications that represent companies on stock exchanges) is unknown.

The Match Group is starting out on top. IAC/InteractiveCorp is a $6 billion media conglomerate, and revenue of the new Match Group accounted for nearly one third of IAC's total revenue in the most recent quarter.

Last quarter, The Match Group reported revenues of $239.2 million, marking an increase of 13% on a year-over-year basis. Reports say Match Group’s revenues are expected to increase 18% in 2015, bringing the number to $1.24 billion.

The hope with separating the Match Group, and combining more established businesses (like Match and Meetic) with earlier stage businesses (like Tinder), is that the move will lead to significant cash flow generation and meaningful growth potential.

Or, as Chariman and Senior Executive Barry Diller colorfully put it, “I'm not a believer in simply agglomerating assets in perpetuity. I've long felt that as entities grow into size and maturity it's healthy to give them separation and independence from a mother church."

It's an exciting time for the industry, but dating services haven't always done well on Wall Street. AshleyMadison forfeited an IPO in 2011. Zoosk filed for an IPO in April 2014, but withdrew the application in May 2015. Hinge, on the other hand, skipped the IPO entirely, instead relying on raising capital from venture capitalists. In 2014, Hinge had raised $12 million.

The Match Group will also face stiff competition from other key listed players like Spark Networks and Jiayuan.com. Still, IAC believes this IPO can give new life to the Group. Estimated EBITDA for The Match Group in 2015 is $264.9 million – and that's excluding the $75 million EBITDA anticipated from Tinder alone.

A well-received IPO could not only put IAC significantly ahead of its competitors, but also serve as a litmus test for the entire dating industry.

Did you know crafty ladies love Houston, men in Seattle seek outdoor adventure, and intellectual singles flock to Washington, DC?

It's hard to put much stock in the interests section on online dating profiles. Occasionally you may connect with something, but mostly it's a lot of boring clichés (“I like traveling and hanging out with my friends”). All most of us use the interests section for is scanning for red flags and looking for microscopic signs of compatibility.

Well, it turns out those interests may serve a more important purpose. Using an interest-based algorithm, PlentyOfFish examined the dating profiles of more than 10 million singles over the age of 21 to group them into personality types. The results were released as a new research study called PlentyOfPersonality.

The research identified the top 20 personality archetypes, based on corresponding interests, of singles in 11 major American cities. The data was then broken down by city and gender to asses how differences and similarities in the personality types might impact dating habits.

The 20 personality types are: Artist, Bar Game Buff, Cultured Urbanite, Curious George, Eternal Optimist, Family First, Fast and Furious, Happy-Go-Lucky, Health Buff, Intellectual, Live Event Fan, Mainly Mainstream, Pinteresters, Romantic, Salt of the Earth, Social Butterfly, Sports Fanatic, Weekend Warrior, Well-Rounded, and Outdoor Adventurer.

Scanning the data, it's clear that some cities have greater potential for compatibility than others. Men and women in Detroit, for example, sync up on three of the four top personality types: Weekend Warriors, Eternal Optimists, and Bar Game Buffs.

On the other hand, singles in Boston may have a hard time finding their matches. Female residents are Cultured Urbanites, but most men are partying Weekend Warriors. A similar split is seen in Seattle, where men are Weekend Warriors and Outdoor Adventurers, but women fit into the quieter and more creative categories of Pinteresters and Artists.

So what we can we learn from POF's personality study?

First, don't skip over the interests section. You may be tempted to say “I dunno,” “Ask me,” “Too many to list here,” or leave it blank, but you're missing a valuable opportunity.

When you do fill it out, consider your answers carefully. Discerning visitors are using your interests, consciously or subconsciously, to construct a portrait of your personality. Make sure it's an accurate representation of who you are and make sure the statement it's making is positive.

If all else fails, perhaps it's time to pack up and move. Love could be waiting across state lines. For more on the dating service which conducted the study, you can read our Plenty of Fish review.

On Tuesday Match Group which is a subsidiary of IAC/InterActiveCorp purchased PlentyofFish Media for $575 million in cash. The deal is expected to close by the end of the year. Markus Frind which is the founder and sole owner of POF started PlentyofFish.com way back in 2003. It was a side project for him to learn a new programming language. It quickly exploded and by 2008 he was earning $10 million a year from the dating site with only a couple of employees. Early this year POF.com reach a milestone and hit 100 million users. The company also predicted it would earn $100 million for the year 2015. On its newly launch responsive mobile site POF currently reports the following statistics:

• 3.5 million singles log into POF.com daily (through the website and dating apps)
• Those same singles generate more than 9 million conversation every day
• From those conversations 1 million relationships are created every year

In the past two years I have heard several rumors about Match being interested in purchasing POF.com. I had heard around $300 million was offered at one point, but it was turned down. For a site earning $100 million in a year with no debt and it’s only real expense is it’s 75 employees that was a pretty low offer (if it is true). Obviously there was some negotiations going on which resulted in Markus walking away with over half a billion dollars. Funny enough, the general rule of thumb in purchasing a website (now these are much smaller sites [smilely: ;]]), is that it is worth about 4 years’ worth of the income it generates. I guess from using this purchase as an example, that the rule is not too far off!

The Match Group has purchased a number of dating services over the past 6 years:

• In 2014 Match purchased How About We
• In 2012 Match buys DateHookup.com
• In 2011 OkCupid was bought by Match.com for $50 Million
• In 2009 People Media was acquired for $72 Million

Combining all of these sites along with Tinder (which Match had funded pretty early on) and adding POF to the mix, this will make the Match Group the undisputed power house in dating online and on our phones for years to come. Acquiring POF will also make the Match Group’s proposed IPO that much more enticing to investors when it happens, which is most likely near the end of the year.

POF is currently a free dating site that offers a paid subscription for an upgraded membership. This upgraded membership offers a number of features like no ads, viewing extended profiles and seeing who has viewed your emails. I am curious to see if the Match Group plans any tweaks to this formula. If they change POF to a completely paid dating site like Match.com (which I highly doubt by the way), then I am sure POF users would be up in arms. I have a feeling they will leave POF.com pretty much the same for now and let it continue as is, in the same way Match Group let OkCupid continue to operate.

Is there an online dating downer worse than finding out your new flame looks nothing like their profile picture? Total letdown, right? As online dating offenses go, it's high on the list.

Zoosk devised a solution to this all-too-common problem back in 2014. The feature, dubbed Photo Verification, confirms the authenticity of members' profile photos. If your photos pass the test, you receive a green Photo Verified badge.

Photos are verified under the Verification section (surprise) of your profile. Select Verify Photos and you’ll be prompted to record a short video of yourself. Zoosk’s moderators review the video and, if they feel your photo is an accurate representation, you'll receive an email letting you know that your photos are verified. The badge will automatically be added to your profile and your video selfie remains private.

The Photo Verification feature made Zoosk the first company to address this prominent online dating concern. With its launch came newfound levels of transparency, increased trust between online daters, and better first-date satisfaction.

“One of the most important concerns of online daters is going out with someone who doesn’t really resemble their profile picture,” said Shayan Zadeh, co-founder and CEO of Zoosk. “By innovating a system for our members to validate the accuracy of existing profile photos, we believe we can create better first-date experiences that will lead to lasting relationships.”

Photo Verification will now take a starring role in Zoosk's “First Comes Like” advertising campaign. “The message from our last campaign was successful in differentiating us from other sites,” Katherine Knight, brand manager for Zoosk, told Marketing Daily. “For our new campaign, we wanted to build on that and take it to the next level.”

The “First Comes Like” initiative highlights the fact that building a lasting relationship requires time, and that “love at first sight” is rare. In one ad, a woman uses Zoosk's mobile site while a voiceover explains the message of the campaign. Another 15-second spot hones in on the photo verification feature, showing a man trying to identify his date in a crowded coffee shop using the Zoosk app.

“Everybody wants love to be a big, huge fairy tale. But the reality is, before all that can happen, you have to fall in like first,” said Tony Zimney, creative director at Muh-tay-zik Hof-fer, the agency that created the campaign. “Each one of our spots highlights this moment of like.”

The commercials will begin airing nationally in the beginning of July.

Plenty of Fish announced on July 1st that POF.com now is a responsive website. With regards to websites, the term “responsive” refers to the websites ability to change the layout of the site on the fly to better accommodate the screen size the person is using to view the website. For example someone viewing a website on a laptop could see a site that has multiple columns with a lot of text and images. When someone views the same website on their phone it most likely would be one column with less images and a bigger text font used to make reading easier. There is more to responsive but that is the basics of what it does.

Before it was responsive POF.com would serve the same webpages for mobile as desktop. This wasn’t bad on a tablet as the dating site is very usable on this size of screen. On a phone though a user would have to scroll around the screen to see different parts of the page. Going responsive allows mobile users to have a more app like experience when using POF.com.

For more on this very popular dating service please read our POF review.

On Sunday June 14^th, people across America were acknowledging Flag Day, an annual tradition, over social media. Coincidentally, it was also the annual celebration of the LGBTQ community – an event known as Pride. So when Coffee Meets Bagel reached out via social media to announce its support of Flag Day, the online dating service mistakenly caused an uproar because of a typo.

The now-infamous tweet which was widely criticized over social media and the subject of a story in the Washington Post, said: “It’s Fag Day. Hoist your colors and don’t forget to LIKE today’s Bagel.”

People on the East Coast were the first to catch the mistake, but many didn’t realize it was a typo and immediately took to Twitter to denounce the dating service, with one person posting: “Got a notification from @coffeeMbagel saying today was "fag day." I'm disgusted at the audacity to say that during pride. #coffeemeetsbagel.”

Many people weren’t aware of Flag Day, but they were aware of Pride celebrations, which made the typo even worse. They thought the company had posted the tweet on purpose.

Coffee Meets Bagel took down the post after they realized the typo. But thanks to the speed at which social media can influence a story, and the incredibly bad timing that the typo happened during Pride, the company had little chance to correct the error. They have since been apologizing and repeating that it was just a simple mistake.

About three hours after the notification went out, users received an e-mail from the company’s head of customer experience apologizing for the misspelling. It reads, in part:

“I would like to apologize wholeheartedly for the message you received this afternoon. The misspelling of Flag Day was a mistake and a complete oversight. We’re updating our process to ensure something like this does not happen again…Coffee Meets Bagel, as a company and as individual employees, celebrates the LGBTQ community and would never use such a word.”

While it might just be a simple oversight, the bigger question is: will it hurt CMB in the long-run, if people associate their brand with a lack of support of the LGBTQ community?

We have all sent emails and social media posts with typos – this isn’t uncommon. What is a shame in this instance is that a company sent an official tweet meant to show support of both Flag Day and the LGBTQ community, and yet, ended up alienating their customers and potential customers in the process.