Milestones

By now, we all know of Tinder’s unprecedented success in the online dating market. But how exactly did they make it happen – gaining over one million active users in less than a year, and then to gather 24 million users in only two years?

According to Tinder, there were two essential challenges with the online dating market before they launched the product: first, there was social stigma associated with online dating – the perception by the general public that it was a last resort, rather than a good way to meet people. Second was geographical concentration – people like to date others they know are close by; it would have to work on a micro level before it worked on a national or even worldwide level. Meaning, Tinder had to get active users who were all in the same area to enjoy using it to create stickiness. Think about it: when you download a dating app, it’s a little disappointing to see that your matches live an hour or more away.

With these two things in mind, Tinder started its marketing initiatives on college campuses. Two of the company’s co-founders were active in their respective fraternity and sorority, and first approached them for help in spreading the word. Justin Matteen, one of the co-founders, hosted a party at his parents’ house where he invited his college fraternity and sorority members from USC to help launch Tinder. For admittance, attendees had to show their phones at the door – and prove that they had downloaded the app.

This strategy worked effectively, because it addressed the online dating stigma by populating the dating app with young, socially active and attractive young people, creating a desire for a wider audience to download and use the app (in the hopes of meeting some sorority girls, we suspect). In addition, it created a buzz within a geographically close community – fraternities and sororities on the same campus. From there, Tinder’s team went to college bars and approached non-Greek members, enticing them with meeting other attractive young students via the app.

The strategy of marketing to college campus influencers worked – within six months, Tinder had half a million users. From there, the company had to branch out to a larger demographic. They started city by city, holding parties at exclusive nightclubs, appealing to the 24-35 year-old demographic. As of first quarter in 2015, the company had 24 million users.

“In early months, over 85% of our user base was between the ages of 18-24, but now that age demo only makes up about 57% of our user base," said Matteen in website Parantap. "We are seeing a huge upswing in both 25-34 year old demographic and 35-44 year old demographic.”

Tinder has taken off thanks to a remarkably executed marketing and influencer campaign. As a result, they have changed the whole online dating industry.

For more on this dating app you can take a look at our review of Tinder.

In 1995, Match.com forever changed the way we meet and connect.

Electic Classifieds launched Match on April 21, 1995. By October 1996, membership reached 100,000 singles. A year later, 150 couples who met on Match had walked down the aisle together.

That was just the beginning. Things exploded at the turn of the century, when Match partnered with AOL and MSN to bring online dating to the general public. Match launched internationally in 2002 and introduced its mobile service in 2003. By 2010, Match had become responsible for more dates, relationships, and marriages than any other dating site.

Now, in 2015, Match is celebrating two decades as the world's largest dating service. The site is responsible for over 10 million relationships in the US alone, and has created more than a quarter of a billion matches overall.

In honor of Match.com's 20^th birthday, let's take a look back on some of the ways online dating and romance have changed over the years.

1. The stigma is mostly gone. When Pew Research Center studied online dating habits in 2005, most Americans were skeptical. By 2013, more than half agreed with the statement “Online dating is a good way to meet people.” Some still consider online dating a desperate tactic, but they are in a minority that shrinks more and more with each passing year.
2. 1 in 5 adults ages 25-34 have tried online dating. Online dating is most popular amongst singles in their mid-20s through mid-40s, but 45-54 year olds are just as likely to date online as 18-24 year olds. Some suggest that online dating is particularly useful for older singles, who tend to have a more limited number of available partners in their immediate social cirlces.
3. More singles are open to meeting someone from an online dating site. When Pew Research Center conducted a survey in 2005, they found that 43% of online daters met someone in person after initially being introduced on a dating site. In 2013, that number increased to 66%. But that still means 1/3 of online daters have never met up with someone in real life.
4. Online dating is a joint effort. Many singles enlist friends to help them put their best foot forward. Around 22% say they've asked someone to help create or review their profile. Women are especially likely to ask friends for assistance – 30% have sought profile help, compared to 16% of men.
5. 5% of coupled up Americans say they met their significant other online. As accepted as online dating now is, the majority of Americans are still meeting offline. But given the steady popularity of online dating sites and the rapid explosion of mobile dating apps, that number is bound to change.

Here's to another 20 years of modernizing romance, Match! For more information please read our Match.com review.

You may know Coffee Meets Bagel as the company that turned down the largest offer in Shark Tank history.

For those of you keeping score, that would be a mind-blowing $30 million from Mark Cuban.

Entrepreneurs and sisters Arum, Dawoon, and Soo Kang came to the tank seeking $500,000 for 5 percent of Coffee Meets Bagel, a dating service that uses Facebook profile info to make matches between friends of friends. Without flinching, they rejected Cuban's $30 million offer on the grounds that they saw CMB growing as big as Match, a billion-dollar business.

Anyone else wiping sweat off their foreheads just thinking about that?

CMB went on to close a $7.8 million series A financing round earlier this year, and has now started its international expansion with Hong Kong. The sisters chose Hong Kong for their international launch due to “the highly social nature of life in this city,” they told Forbes, “coupled with the fact that people are often time poor thanks to long work hours.”

Dawoon Kang lived in HK for three years while working at J.P. Morgan, so she's well-versed in the city's dating scene. “Hong Kong is a very young, vibrant city full of ambitious singles in their 20s and 30s who are eager to meet new people but have very little time for it,” she explains. Coffee Meets Bagel was designed for exactly that market of busy young professionals, making Hong Kong an ideal choice for expansion.

Dawoon says the service has achieved consistent 20 percent week on week growth since launch, primarily driven by Facebook. Hong Kong members have a substantial number of Facebook friends – nearly 8 times the worldwide standards – resulting in each Hong Kong Coffee Meets Bagel member having around 48 Facebook friends who also use the app. CMB is primed for success in its new home.

The Kang sisters have noticed differences in the way Hong Kong members and US members use the app. Dawoon says: “On average, 72 percent of Hong Kong members log in every day to check their Bagel. Of these, 77 percent are connecting on an iPhone. They log in 4.3 times a day (33 percent higher than US members) and spend a total of 7.7 minutes a day (117 percent higher than US members).”

On the other hand, the gender ratio is similar in HK, NYC, and Washington DC (62 percent of members in Hong Kong are female). Academic achievements are also similar, with 98 percent of membership in both HK and the US boasting bachelors degrees.

From here, the Kangs plan to continue their international expansion, perhaps one day to their birth country of South Korea.

Dating app Coffee Meets Bagel has taken a back seat to the spectacular rise of Tinder the past few years. This however has not daunted the company’s founders, three sisters who left their cushy corporate jobs to fulfill their entrepreneurial dreams. (Not to mention, they wanted to create a dating app that they would like to use!)

Now, the company has taken its carefully executed roll-out in the U.S. and is expanding internationally. Hong Kong was the first place outside of the U.S. where the service was launched.

CMB takes its operations seriously. Instead of giving in to the “more is more” trend in dating - offering unlimited looks at profiles and encouraging users to choose “yes” or “no” in a matter of seconds – this dating app offers users one match per day. And you have 24 hours to mull it over, choosing to like or pass. If you like, you have a week to make a real date happen through the app’s private chat line, or it’s on to the next. In other words, it forces users to carefully consider and follow through, instead of swiping at will and sending a few messages that never lead to a date.

Facebook is a key platform in spreading interest in the app overseas, since Hong Kong users (according to a recent article in Forbes) have an average of 768 Facebook friends each, eight times the worldwide standard. Also, Hong Kong is a highly social city, although people spend more time at work than they do trying to meet people to date. It made for the perfect place to launch the dating app’s international roll-out.

Co-Founder Dawoon Kang lived in Hong Kong for three years, experiencing the dating scene for herself. (She and her current boyfriend met over CMB). “Hong Kong is a very young, vibrant city full of ambitious singles in their 20s and 30s who are eager to meet new people but have very little time for it. Coffee Meets Bagel was designed with these young professionals in mind, which made Hong Kong our perfect market – and our initial results show that,” she told Forbes.

On average, Hong Kong users are logging in 4.3 times per day (33% more than U.S. members), and 72% log in each day to check their matches. Like in the U.S., more CMB members are female – 62% of the Hong Kong user base are women, although there are more single men overall in China.

The service launched in Hong Kong on March 4^th, and before the month was over, the company had made 3,000 connections. According to Kang, CMB has also achieved consistent 20 percent week on week growth.

IAC, the company who is the majority stakeholder in popular dating app Tinder, no longer wants Sean Rad in the driver’s seat. As of late March, the company has named the new CEO who will be taking his place: Christopher Payne.

Payne previously worked for eBay as a senior vice president in the company’s marketplaces division, where he was responsible for the North American market. He also founded Positronic, a search technology company, which eBay acquired in 2008. Before that, he worked for 13 years at Microsoft, including heading its search unit, which was then called Windows Search Live.

“Christopher brings invaluable experience running consumer technology businesses that operate at massive scale,” Mr. Rad said in a statement.

But the change might not be completely embraced by Rad, who was embroiled in a very public sexual harassment lawsuit brought about by former employee Whitney Wolfe. They settled out of court for an undisclosed amount, and she has now launched a new dating app of her own that directly competes with Tinder. Rad will remain President of Tinder and retains a seat on the company’s board. According to reports, he will still be in charge of product and marketing, but Payne will take over everything else.

The spotlight that has been on Rad the past few years has not been flattering, and the most recent scrutiny has come as a result of the new premium service Tinder Plus, which is costing as much as $19.99 US per month for two additional features. Users have asked to be able to use Tinder in multiple cities, as well as to “go back” and swipe right on matches they’d previously turned down. The new service offers these features for a price – but if you want to just keep the basic free service, the company has also put limits on the amount of swiping you can do in a 24-hour period. This caused controversy when it launched in the UK, and the app’s rating in the iTunes store went down to one and a half stars as a result.

Another controversial decision was pricing for the new service, which is based on age. For users under 30, Tinder Plus costs $9.99 per month, but for those 30 and older, it goes up to $19.99, and even more in European countries. Rad says a lot of research went into the pricing, and he stands by what he says customers are willing to pay.

Tinder also plans to launch an ad product, but has not disclosed how this will affect the service or user’s experience. Until now, advertising revenue has come from product placement, but the app has a lot of valuable user information for marketing departments to tap into.

IAC hopes that Payne can refocus Tinder’s business goals and help it grow into a more profitable as well as popular company.

Read our review of Tinder to find out more about this popular dating app.

eHarmony has weathered more than a few storms in its fourteen-year history, and has recently shared its trials and tribulations with The Wall Street Journal. The company has redefined itself as a “matchmaking site” as opposed to an online dating site, putting the emphasis back into long-term relationships.

The strategy seems to have worked – according to figures revealed by eHarmony founder Neil Clark Warren and COO Armen Avedissian, the company has more subscribers than ever before – 778,000 – and they make up to 15 million matches per day. But this is after the company almost collapsed. In 2012, after a few ousted CEOs and some advice from a board member, Dr. Warren made the decision to take back the reigns of the company and get it back on track. He came out of retirement at 78 years old to reclaim his spot as CEO and turn the company around – about the time when Tinder hit the market.

Before Warren took over, eHarmony was struggling to figure out its market, delving into new technology instead of focusing on its branding, leaving it vulnerable to the explosion of new dating sites and apps that came along. As Dr. Warren told the Wall Street Journal, “I think under CEO Greg Waldorf, users started seeing us more like the other dating sites Match and Zoosk, when we’re really a social science site. We were never meant to be a dating site. We were meant to be a matchmaking site. I think our leadership lost sight of that, too. We want good technology, but what we’re really, really interested in is long-term relationships.”

For its rebranding campaign, Dr. Warren returned to the television commercials, emphasizing the long-term matchmaking aspect of the technology. The company has also focused on its mobile app, something that has become a necessity for traditional dating sites since Tinder hit the market. When asked about Tinder, Dr. Warren emphasized that the app is actually helping bring more awareness and acceptance of online dating as a whole, which has been good for all online dating sites. According to Warren, eHarmony’s marketshare has stayed even despite the competition – Tinder claims to match about 22 million people a day.

Not to mention, Tinder’s reputation for being a hook-up app has helped differentiate more “serious” dating websites like eHarmony.

Warren told The Wall Street Journal: “People who are eHarmony customers probably aren’t going to be lured away by Tinder. We’re a serious bunch when it comes to matching for long-term relationships. We’re really not interested in short-term relationships.”

Tinder hasn’t been the only thorn in eHarmony’s side. The company came under fire when it didn’t include gay and lesbian relationships in their matching services – only creating “Compatible Partners” after a high-profile lawsuit. And now, eHarmony plans to launch a whole new matchmaking service called “Elevated Careers” – which will match job candidates with potential employers, based on factors like company culture and personality profiles in addition to skill sets. The new service will be available in June.

For more on this matchmaking service you can read our review of eHarmony.