Marketing

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.

Apple Watch sales have been through the roof since the product launched, and it is creating a media frenzy (as many of Apple’s product debuts do).

Not many dating apps can be downloaded for the Apple Watch, but Coffee Meets Bagel is one of the first. The company recently announced its launch on Apple’s wearable technology.

Coffee Meets Bagel is a dating app that works through your social media connections, finding matches in your Facebook network and introducing them to you one at a time. At noon every day, CMB presents users with one personalized match or “bagel” – then each user has 24 hours to decide to like or pass. If there’s a mutual like, they can chat over a safe and private line. However, messaging is not indefinite – users will have only a week to set up a date before the private chat line closes.

With Apple Watch, CMB works a little differently. This might signal a new wave of dating technology, since swiping left and right isn’t really an option with an Apple Watch. (Sorry, Tinder.) Instead, apps rely on more hands-free technology, such as voice-to-text functionality.

According to Dawoon Kang, co-founder of the dating app, the Apple Watch app will complement the existing mobile app by "enabling members to do everything more quickly and easily," not to mention hands-free. Apple Watch’s Glance feature allows members to check their daily matches at noon. The watch will display the match’s basic profile and photos – (likely not much information will be available on the small screen, however).

Instead of manually liking or passing, members can “like” or “pass” matches hands-free using the Apple Watch’s voice technology. If two users match, then they are connected and able to chat using voice-to-text technology.

This is good news for those looking for a Tinder alternative. But is wearable technology going to be a new platform for dating apps? Considering CMB works through voice technology (i.e., talking to your Apple Watch) – it might be a little intimidating to use when you’re out at a bar. Do you really want people around you to know that you’re liking or passing on a date, or to overhear your text conversation? Tinder is much more subtle, and no voices needed.

Still, that isn't stopping people from buying the new watch. No word yet on whether CMB's dating app will also be available for wearable Android products.

Recently, Gap came under fire from Tinder executives by posting fake profiles advertising their wares on the dating app, hoping people would swipe right to participate in a new campaign. The problem was that Gap didn’t get Tinder’s permission, so Tinder ordered Gap to take them down.

But Tinder isn't cracking down on fake profiles or spam-like ads for all companies looking to promote (though it did hire an agency who is cracking down on their spamming issue). Tinder only allows companies who are actually paying to post their fake “profiles” - and these companies are reaching their target audience of young consumers in a really big way.

Native advertising on Tinder works like this: the company creates a "profile" targeted to its audience, and uploads to Tinder. From there, users will come across the profile and swipe left or right, depending on if they like what they see. Companies that have done this recently include Starbucks and Dominos Pizza.

But now, it's not only companies looking to advertise - musicians are taking advantage of Tinder’s user base, using the service to promote new videos and album releases. Because musicians are constantly looking for new ways to reach their audiences and gather new fans, they have become more creative in their online promotions. Tinder is the latest tool, and recently did a campaign with singer Jason DeRulo.

Forbes reported that Jason Derulo became the first musician to use the Tinder promotional strategy to launch a new single. When users swiped right, they were given in link to a YouTube page where they could watch the brand new video for his new song, which was also getting a huge push via radio. The campaign was a success: over 1.1 million people swiped right (meaning they liked him) – in three days. The song became a top 40 hit, with 14% clicking through to purchase his song on iTunes.

Of course, it helped that the song was speaking to his target market – daters who are looking for a late-night hook-up, a la Tinder. In the video, DeRulo is shown fantasizing about a woman he had sex with, jumping out of bed in the middle of the night to go to her apartment, where she is of course fantasizing about him, too.

The success of the campaign will surely capture the attention of other musicians and companies who want to appeal to their target audience: young singles. These companies are also finding that effective advertising means meeting these people on their own turf – social media, rather than traditional stuffy ad campaigns. People are much more mobile, and looking at their phones more than looking up at a billboard.

One thing’s for sure, Tinder doesn’t have to worry about meeting revenue goals through subscriptions to its premium (and pricey) service. Companies will likely be more than willing to offer money for campaigns that have this type of success rate.

For more on this popular dating app you can read our review of Tinder.

Last month, Tinder rolled out its new and highly anticipated premium service Tinder Plus, which had been teased in the press with few details for months. But rather than praising its new features, Tinder has been criticized for discrimination. The company charges $9.99 per month for users in their twenties, but once you hit the magical age of 30, the price jumps to $19.99.

Compare this to the price daters pay for a service like eHarmony ($18.95 per month with a 12-month commitment as of this posting), which touts its match-making capabilities, and Tinder seems like a rip-off. After all, the monthly fee for eHarmony includes a lot of filters to help find a more "quality" match - an extensive questionnaire, a detailed profile, and a “communications process” - all aimed at helping you find a lasting relationship. While people do find good matches on Tinder, it's a lot more hit-or-miss.

Still, people seem to prefer the game-like swiping of Tinder. And according to experts, they will probably pay for it – even if they are 30 or older.

A recent article in The Washington Post claimed that there is a war among dating services like Tinder and eHarmony, who are categorizing daters and their behaviors according to their ages. Tinder assumes that younger daters are their target market (after all, the service began with heavy promoton on college campuses before it was unleashed on the greater population). eHarmony however, is going after the more “seasoned” dater, who has had enough with all the hook-ups and wants a real relationship.

The online dating industry is said to be worth about $2.2 billion, with one in ten adults averaging more than an hour a day on a dating site or app. This rise in popularity isn’t a coincidence – it’s gone hand-in-hand with the amount of time we spend on our phones – a near-constant accessory. Tinder appeared at the right time and made online dating seem like a game, and more importantly, removed its stigma.

The popularity of Tinder however has had a cost among daters. There is an assumption that the app is only for hooking up, and that people using dating apps aren’t serious daters. At least, this perception has been what traditional dating sites like eHarmony have been pushing. It founder Neil Clarke Warren told The Washington Post: “They put all their money on one variable: looks. That fills me with quite a few little chills… I have presided over the funerals of more marriages than any psychologist, and it is miserable.”

eHarmony isn't the only one speaking about Tinder's flaws. “There are limits to the percentage of single people who will become active Tinder users and repeating ‘casual daters,'” Morgan Stanley analysts told their clients in February. “And in our view, Tinder is reaching those limits.”

So what does this mean? Is Tinder trying to embrace their young daters as the future of dating, or does eHarmony recognize they will never have a service that’s so addictive and easy to use?

Both services offer very different ways of meeting people, and attract different types of users. But it will be interesting to see who will pay for them going forward.

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.

To help promote the global launch of Tinder Plus, co-founder and soon-to-be former CEO Sean Rad has been in the news a lot lately. Recently, he hopped on Reddit to answer questions from the general public about Tinder, the launch of its new premium service, and what’s next for the company.

Because of the recent backlash about Tinder Plus, people were interested in the reasons behind the pricing of the new service - $9.99 for those under 30, and for those 30 and older, $19.99. According to Rad, “months of testing and thought went into the feature and price mix for Tinder Plus. We tested a broad range of prices and found that users that saw value in Tinder Plus were more than willing to pay at the existing price points.” He goes on to talk about Passport and Rewind, the two most-requested features offered in the new service, which allow you to check out people in other cities and also to reconsider someone you rejected before.

Rad also fielded questions on whether the app creates feelings of rejection – after all, you can be rejected with one swipe in less than a second on Tinder. Rad countered this question by explaining how Tinder works. People won’t know that you liked them unless they swipe right on your profile. “We call this the ‘double opt-in.’ Even if you don’t match with another user, there’s no certainty that they saw your profile.”

Tinder’s history holds a series of lucky accidents – for one, it was almost named Matchbox. The first version of the app didn’t even have swiping, Tinder’s signature feature. Co-Founder Jonathan Badeen explains: “I snuck it in a few weeks later and told everybody after it was released that they could swipe. The swipe was born out of a desire to mimic real life interactions with a card stack. When organizing cards you put them into piles. Swiping right fittingly throws the card in the direction of the matches…The swipe just made sense in this case and seems stupid simple in retrospect.”

One of the participants asked how the founders came up with the idea of Tinder, to which Rad replied: “…we had this obsession with breaking down the barriers in meeting people around you. We noticed that people grew closer to their small groups of friends but grew farther apart from the rest of the world in the process. We knew that if we could simply take the fear out of meeting someone, that we could bring the people closer together. And we've done just that.”

Please read our Tinder review for more information on this popular dating app.