Online Dating

A recent article in The New York Times shed light on a particular problem that’s been rearing its ugly head lately: companies are conducting secret experiments with users of social media and online dating sites. Facebook recently revealed that it manipulated the emotional content of news feeds of 700,000 people to see if emotions were contagious. In addition, OkCupid recently shared the results of its own three secret studies of users.

In one test, OkCupid obscured profile pictures so that people could communicate, but they couldn’t see who they were communicating with. The dating site found that members had more meaningful conversations, exchanged more contact details, and responded to first messages more often. When pictures were revealed, many conversations stopped.

In another test, OkCupid hid profile text to see how it affected personality ratings. In general, more attractive users were regarded as more personable – in other words, users were equating looks with personality – even though there wasn’t much information to go on.

The third experiment was the cause of the most controversy, where the site lied to a portion of users, telling them that matches who were (according to OkCupid algorithms) 90% compatible were actually only 30%, and matches with very little compatibility were told they had high compatibility. The end result? Communication went up when people thought they were being matched with someone very compatible, because OkCupid gave them that impression of compatibility, even if it wasn’t the truth.

While it’s interesting to note that people can be swayed by looks and influenced by what a dating site tells them might work, is it really going to improve the overall experience of online dating? In other words, we might track people’s behavior to understand it a little better, but deceiving people to see how they behave is a slippery slope, and doesn’t really improve the current dating experience on OkCupid (or any site). As the study noted, as soon as the pictures were revealed, people went back to their old patterns of behavior.

Facebook and OkCupid aren’t the only sites studying user behavior, and probably aren’t the only sites conducting experiments on users. But before we continue down this path, it’s important to ask: who are these studies really benefitting? Are they helping us to become more open-minded daters? So far, not really.

The study succeeded in making online daters even more cynical about online dating. How do they know if what OkCupid is telling them about compatibility or ratings is true? It makes the already confusing world of dating a little less friendly and upfront. Dating needs more honesty, not less.

IAC fell slightly short of expectations in Q2 2014, but nevertheless had a solid second quarter.

Subscribers are up where IAC's dating sites are concerned, but revenue dropped in its Search & Applications unit. Match Group revenue increased 8%, as paid dating subscribers grew 10% to 3.5 million globally.

The Media segment fell 36% to $36.7 million, due primarily to the closure of the Newsweek print business and the sale of its digital business. However, video site Vimeo increased revenue over 45% and reached nearly 500,000 paid subscribers. Websites revenue also increased 1% and page views grew 8% to 8.5 billion.

Search & Applications was the weak link in the chain for Q2 2014. Revenue declined 7%, enough that it could not be offset by growth elsewhere. On the whole, consolidated revenue declined 5% year-over-year. Consolidated Adjusted EBITDA dropped 10% compared to the previous year. Total revenue for Q2 2014 is $756.3 million, down from $799.4 million in Q2 2013 and below the $796.6 million consensus estimate of analysts consulted by Thompson Reuters.

Looking to the future, IAC will push forward with its new marketing campaign for Match and plans to put a renewed focus on native mobile apps. IAC will also acquire the Princeton Review, an in-person tutoring service that publishes college rankings, via its online-only tutoring firm Tutor.com. And then there’s one thing that gets more attention than any other: Tinder.

IAC says it intends to monetize the popular dating app this year, and stands to make quite a hefty sum. Greg Blatt, chairman of IAC’s Match Group unit, said recently that Tinder has the potential to generate as much as $75 million a year in earnings (before interest, taxes, depreciation and amortization).

“It’s growing like a weed,” Blatt said, but earning money from Tinder is still “a work in progress in terms of exact manner and timing.” Several monetization possibilities are available to IAC at this point. Back in April, IAC chairman Barry Diller said three approaches are currently under consideration:

• Subscription
• Advertising
• Freemium (which offers basic access for free and charges for additional services)

Tinder certainly isn’t hurting for opportunities, so at this point any direction seems like a real possibility. “I have been developing online businesses for quite a while now,” Diller claims, “since the Internet started. I have never had the number of people banging through our doors to see if we would sell them a little piece of Tinder.”

So far it hasn’t happened, but don’t think he doesn’t have something up his sleeve. “We have got lots of little areas marked for revenue,” Diller said. “You bleed into them over time.”

For more on these 2 dating services you can read our reviews of Tinder and Match.com.

eHarmony has started today a 4 day Free Communication Weekend which runs from 12:01AM Friday, August 15th to 11:59PM Monday, August 18th (Pacific Standard Time).

This will most likely be the last free communication weekend (FCW) of the summer. So if you are interested in trying out this dating service, now is the chance to do it for no cost and with no credit card required.

All new and existing free members participate in FCW so once you have created your membership account and taken the personality questionnaire all you need to do is review your new matches. Once you have selected one or more members you would like to converse with you then start the guided communication process. This is a series of 3 or 4 questions that you ask your match. He or she will then answer the questions along with asking their own. This process is a great way to break the ice and helps get the conversation going. Once it is complete you can then start mailing the person directly. This FCW does not include eHarmony's secure call, profile photos or skip straight to email. To enable these features you will would have to purchase a subscription.

To find out more about this dating site / dating app you can read our eHarmony review.

Just when you think Facebook couldn’t possibly get any bigger than it already is, it goes and shatters all expectations. For the 8^th quarter in a row, Facebook’s earnings beat projections.

Much of that growth is in mobile, where Facebook is growing twice as fast as it is compared to its services as a whole. Facebook currently logs 654 million daily mobile users and 1.07 billion mobile users each month. Thanks to the continued increase in smartphone usage, 62% of the social network’s ad revenue came from mobile in Q2. In total, Facebook now has 829 million daily users and 1.32 billion monthly users. Altogether, they are responsible for a spectacular 2^nd quarter for Facebook. The company beat Wall Street’s estimated earnings of $2.81 billion to end Q2 2014 with $2.91 billion in revenue.

Here’s how that stacks up against Q1 2014:

• Facebook's total user count is up 3.125% from 1.28 billion total monthly users to 1.32 billion
• Total daily user count is up 3.36% from 803 million to 829 million
• Monthly mobile user count is up 5.9% from 1.01 billion to 1.07 billion
• Daily mobile user count is up 7.4% from 609 million to 654 million

Revenue isn't the only way Facebook is exceeding expectations. Some critics have said the social network is losing its influence with Western users, but its monthly user count in the USA and Canada grew by 2 million this quarter. And for anyone who dared to suggest that Facebook wouldn't survive the transition from desktop to mobile, Facebook's 391 million mobile-only users dwarf its 240 million desktop-only users.

Internationally, Facebook is showing equally impressive numbers. Ad revenue is up everywhere, and the site hit an all-time high average revenue per user in every region around the world.

The only low point was payments revenue, which Facebook largely derives from the 30% tax on the in-app purchases from its Web games platform. Total payments revenue dropped slightly to $234 million from $237 million in Q1. On the plus side, it's still up 9% compared to Q2 2013.

On the horizon for Facebook now is the launch of Facebook Audience Network, the company’s mobile ad network that will bring in revenue by incorporating its targeted ads in other companies' apps. Another big development is Slingshot, a photo and video messaging app that Facebook hopes will be a competitor for Snapchat.

When asked for his thoughts on Facebook’s remarkable 2^nd quarter, all CEO Mark Zuckerberg had to say was “We had a good second quarter. Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”

To find out if this social network makes a good dating tool you can read our Facebook review.

eHarmony is well-known in the online dating space. It has been around over fourteen years and has grown to be one of the biggest competitors due to its emphasis on finding people serious relationships. Now, it wants to get serious about your job search, too.

The company’s strategy and technology is all about compatibility matching. Subscribers to the dating site are put through a rather lengthy sign-up process to ensure that the technology behind the site really captures the essence of what each person wants, along with his or her relationship tendencies. (One of the best things about the sign-up process is that eHarmony provides a snapshot booklet of who you are as a dater: the kind of personality you have, they type of person you gravitate towards, and the positive and negative ways that your dates may interpret your behavior. It’s incredibly insightful, and helped make me a more observant dater.)

Now, eHarmony is taking this compatibility matching technology and applying it to your job search. The new site called Elevated Careers by eHarmony is set to launch in December.

According to MarketWatch, few details were revealed about how the career-matching algorithm will work. But eHarmony CEO Neil Clark Warren said some of the likely qualities that will be analyzed include “conscientiousness, honesty and conflict resolution,” among others.

When asked why Dr. Warren thought eHarmony should move into the career space, since it seems so far removed from romance and peoples’ personal lives, he countered that love and work are more connected than we think. “If people come home and they’re unhappy with their job and boss, it puts a lot of tension on a marriage,” he told MarketWatch.

While eHarmony boasts that is has made 600,000 marriages, they have also gained a divorce rate of 3.9%, slightly higher than the national average of 3.6%.

It is an interesting idea at a time when job dissatisfaction is high. Roughly 70% of Americans described themselves as “not engaged” or “actively disengaged” from their workplaces according to a recent Gallup report. And according to an article in Entrepreneur.com, the average worker hops jobs every 4.6 years. That doesn’t lead to a loyal workforce or employee satisfaction when nobody is willing to commit. Perhaps it is time for a change, and for both employers and employees to look at compatibility, rather than waste resources training people who remain actively looking for another job.

I don’t think job satisfaction is completely reliant on company culture and employer-employee compatibility, though it is certainly a factor. Many people find themselves in careers that aren’t what they expected and want a fresh start. Perhaps there is a way eHarmony will use its technology to also advise what career might be best for each of us. Until then, we’ll see what Elevated Careers has to offer.

The Internet has been afire recently with the news that both Facebook and OkCupid have experimented on their users. Both companies have apologized or pseudo-apologized for their actions, while being careful to note that such online experimentation isn’t uncommon.

OkCupid took it one step further in their non-apology, candidly declaring that “if you use the Internet, you’re the subject of hundreds of experiments at any given time, on every site” and revealing two more experiments they’ve conducted on users.

The first was born out of OkCupid’s short-lived blind date app. To celebrate the app’s release, OkCupid removed all the photos from the site on launch day. During those seven photo-less hours, OkCupid noticed some interesting things:

• Users responded to first messages 44% more often
• Conversations were deeper
• Contact info was exchanged more quickly

In short, OkCupid functioned better without pictures. When the photos were restored, the conversations that had started blind melted away. “The goodness was gone,” notes the blog post, “in fact worse than gone. It was like we’d turned on the bright lights at the bar at midnight.” The blind date app revealed a similar phenomenon. When users got to the date, they had a good time more or less regardless of how physically attractive their partner was. “Basically,” the post reads, “people are exactly as shallow as their technology allows them to be.”

In a related experiment, OkCupid decided to test its original rating system that allowed users to judge each other on two separate scales: Personality and Looks. “Our thinking was that a person might not be classically gorgeous or handsome but could still be cool,” the blog explains, “and we wanted to recognize that, which just goes to show that when OkCupid started out, the only thing with more bugs than our HTML was our understanding of human nature.”

After gathering the data, OkCupid found that “looks” and “personality” were essentially the same thing to users. They ran a second, direct experiment to confirm their hunch that people just look and pictures and ignore profiles. A small sample of users were shown profiles that did not contain text, resulting in two sets of scores for each profile: one score for the picture and text together, and one for the picture alone.

The results were predictably disheartening: text is less than 10% of what people think of you. The blog says it best: “your picture is worth that fabled thousand words, but your actual words are worth…almost nothing.” Ouch.