Marketing

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.

Since 1987, South by Southwest's annual film, interactive, and music festivals and conferences in Austin have become an increasingly bigger deal. These days it's one of the biggest festivals in America, and with that comes all the exciting excesses you would expect.

It's no stretch of the imagination whatsoever to expect that online dating explodes in Austin during that time, particularly location-based services like Tinder. This year's SXSW has indeed seen a flurry of activity related to online dating, but it isn't making a splash in the ways you'd think.

Meet Ava, a seemingly normal 25-year-old who turned out not to be normal after all. In fact, she simply turned out not to be. Ava was a Tinder bot created to promote a sci-fi thriller, Ex Machina, that premiered at the festival. An Adweek staff member wrote about his encounter with Ava in an intriguingly named piece called Tinder Users at SXSW Are Falling for This Woman, but She's Not What She Appears.

Ava was capable of having a conversation via the app, but as soon as she directed users to her Instagram, it was clear that something was off. There was just one photo and one video, both promoting Ex Machina. The link in her bio went to the movie's website. And the woman in the photo is a Swedish actress, who just happens to play a role in the film.

On one hand, it's pretty invasive and – yes – pretty spammy. No doubt “Ava” pissed plenty of SXSW-goers off. On the other hand, it's also kind of brilliant. It ties in perfectly with the concept of the film - “she's a bot in the movie, so of course she's a bot on Tinder.”

And that's not the only example of online dating being a big news story at SXSW. Dating app Quiver turned heads with a “Stop The Robot” protest at the festival. On most online dating sites, users are matched via some kind of algorithm. On Quiver, on the other hand, humans help by matching users they think would be good fits.

“Since the idea behind Quiver is to rely on users rather than artificial intelligence,” writes International Business Times, the team behind it held a fake protest outside the Austin Convention Center to “highlight the dangers of tech – and get some good PR, of course.”

Protesters at the faux-demonstration sported shirts promoting Stop The Robots, an alleged organization (but in fact just a website) raising awareness about the dangers artificial intelligence and other advanced tech could pose to humans. They carried signs with slogans like “Stop the AI threat,” “Robots won't care” and “Humans are the future.”

Who knows whether these publicity stunts convert into actual business, but they're certainly fun for the spectator.

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.