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Online Dating Companies Spending Serious Cash on Marketing

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  • Friday, June 13 2014 @ 07:11 am
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With all of the recent studies regarding the growing popularity and effectiveness of online dating (more than one in five married couples have met online), online dating sites are spending more money than ever to attract new users.

Among the top spenders are two of the most well-known sites: Match.com and eHarmony. In just the first five months of 2014, online dating sites have already matched the total category spending on national TV ads in 2013, according to data from research firm iSpot.

TV ads aren’t cheap, even though ratings have drastically dwindled the past few years thanks to on-demand services like Netflix and streaming video on YouTube. Still, Match.com spent over $71 million so far this year on TV ads, mostly to air during shows like Real Housewives on Bravo, and to capture more of the male population, ESPN and Comedy Central. eHarmony’s spending hasn’t been too shabby either. Through the end of May, they have spent over $59 million for ads aired on TNT, CNN, and TBS on shows like Anderson Cooper 360 and NBA Basketball games.

According to a recent article in the Wall Street Journal, of the online dating market’s 14 brands, the top five dating sites account for nearly 95% of the $214 million spent on ads so far in 2014. In comparison, dating sites spent $241 million on national TV ad placements for all of last year. TV ad spending for the industry last year was also heavier in the August-December period than in the first part of the year.

Unless you scroll through all the commercials on your DVR, you’ve probably seen at least one of Match.com’s 14 TV ads this year. They have created many different campaigns to attract users, and earlier this year, hired Perez Hilton and Patti Stanger to host a conference discussing the results of their “Singles in America” study about what singles are looking for today. The company spent $19 million on one 15-second spot called “Why not?” which featured female members, but their most popular has been its “Nikki and Joey; Kindergarten” spot, which starred a shy kindergarten teacher looking to get back into the dating world. That spot has aired more than 2,000 times since its Feb. 5th debut, and generated more than 40,000 online views and nearly 500 tweets, likes and shares.

eHarmony on the other hand, spent $18 million on one ad to share with audiences how many marriages have occurred through members who met over eHarmony (higher than any other dating site). But their most popular ad digitally was a spot that included the founder’s granddaughter, sharing how she advised her teacher to find “hot babes” on eHarmony instead of other dating sites. It had 6,000 online views and more than 1,200 social actions.

The Biggest Online Dating Services, By The Numbers

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  • Friday, May 30 2014 @ 07:07 am
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Despite still facing the occasional naysayer, the Internet and dating have proved to be a match made in heaven. With consumers using the Internet more and more each year, demand for online dating services continues its meteoric rise. In particular, the ever-increasing popularity of smartphones has made mobile applications a booming business for dating services.

IBISWorld, a global business intelligence leader specializing in Industry Market Research and Procurement and Purchasing research reports, recently put together a comprehensive guide to the online dating industry's market size and growth prospects. By all accounts, the future looks bright for the industry's biggest forces.

InterActiveCorp is the one to beat. The largest company in the industry, IAC counts Match, OkCupid, and Tinder amongst its brands. The New York City-based company is expected to grab 27% of the estimated $2.2 billion market for US dating services in 2014, according to the new IBISWorld report. Analyst Jeremy Edwards predicts IAC's US Match revenue will rise 11.5% to $605.1 million this year, with operating income up 14% to $192.8 million.

Coming solidly in second place is eHarmony, a privately held company based out of Santa Monica, CA. eHarmony proudly dominates 13.8% of the US dating service market, IBISWorld says. The company’s projected US revenue for 2014 is $310 million, up 6.9%, with operating income up 9.6% to $35.3 million.

Spot #3 goes to San Francisco-based Zoosk, with 5.1% market share. 2014 has been a big year for Zoosk so far. The company filed for an initial public offering in April and IBISWorld predicts it will generate $114.2 million in US sales, up 24.5%, and operating income of $3.5 million. That's a nice change from a loss of $100,000 in 2013.

Finally, occupying fourth place, is dating service Spark Networks, with 3.2% US market share.

Altogether, the four largest companies account for 49.1% of US dating service revenue. The industry’s other winners are mobile dating (26%), matchmakers (14%), and singles events (7%).  IBISWorld expects the US dating service industry to grow at an annual rate of 4.2% from 2014 through 2019 - at which point it predicts sales will reach a whopping $2.7 billion.

"It is estimated that niche dating networks and services catering to the baby boomer generation will see the most growth," Edwards said. "In addition, revenue for the mobile dating market is expected to nearly double in the next five years, with rising smartphone adoption and new location-based features leading the market." 

iOS vs. Android Users: With Dating, It Makes a Difference

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  • Tuesday, May 27 2014 @ 07:07 am
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Do you have an iPhone or Android phone? Chances are, you didn’t purchase one or the other by chance: you had a definite preference.

Are You Interested, a dating app for singles, decided to test out its own user base and how their dating preferences correlated to the type of phone they used. We know that things like ethnicity, income, and height play a major role in how much success a dater has online. But could your phone have an influence too, considering how much time, money and effort we put into them? In some cases, yes.

AYI found that iOS users were contacted 17% more often than Android users. Turns out, those who prefer Apple products are more desirable dates. I looked into Cupidtino, the dating site dedicated to lovers of all products Apple, to see some profiles of the most desirable users, but found that it is now defunct. I guess more options are better, even for those dedicated to Apple lovers.

Android users seem to be the ones doing the pursuing, while Apple users tend to wait to be contacted. According to the study, Android users were 12% more likely than iOS users to contact someone on AYI.

The dating app company was able to examine 20 million interactions between their users, pulling from a portion of the 2.4 million mobile downloads of the app. Since other online daters can’t see what phone the other person has, AYI looked at what type of dater owned which type of phone. Interestingly, both groups skewed male, but Android users tend to be slightly older, with 42% between 45 and 60 compared to only 29% of iPhone users. Sixty-seven percent of iPhone users were under 45.

In addition, income seems to be a factor. Android users were 30% more likely to make under $60,000 than those with iPhones. Also, 83% of singles making over $150,000 owned an iOS device.

Marital status is another factor, with Android users being 20% more likely than iOS users to be divorced. Another interesting finding from the study: iOS users tend to drink 50% more often and take drugs twice as often as the Android users. On the flip side, they were also 18% more likely to work out every day compared to Android users.

In terms of education, iOS users were twice as likely to have a Master’s degree and 55% more likely to have a Bachelor’s degree. A whopping 72% of Android users had not completed college.

AYI studied profile information from 13,690 of its mobile app users in the United States for the study. For more information on this dating site please read our review of Are You Interested.

Is the Chinese Dating App Momo Eyeing A US IPO?

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  • Sunday, May 25 2014 @ 09:31 am
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Launched in August 2011, Chinese dating app Momo was one of the first location-based mobile apps in China. Like its American counterparts, the app allows members to upload personal information and photos, then locates the positions of other users in the area. And, again like its American counterparts,  Momo is plagued with a reputation for being a service for one night stands. Though Beijing Momo Technology Co. claims the app's purpose is to assist users in making friends and broadening their social networks, its salacious reputation just won't go away.

Despite being thought of as “a magical tool to get laid,” BMT is now working with banks including Morgan Stanley and Credit Suisse Group AG for the IPO in US, which Wall Street Journal reports is likely to happen later this year. According to WSJ, Momo was recently valued at around $1.2 billion in private fundraising. An earlier fundraising 1 1/2 years ago put Momo’s market value at just $500 million. The app seems to be on the right track, whatever reputation it has.

Match.com is Marketing to a New Generation with MatchMade Scholarship Contest

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  • Tuesday, May 20 2014 @ 07:05 am
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Online dating has been around for a while. And plenty of couples met over a dating website years ago, got married, and now have children. So it makes sense that one of the most established of these - Match.com - might want to prep the new generation when they start online dating. Why not use Mom and Dad as an example for what really works when it comes to love?

It’s not surprising the company is marketing to a new generation of online daters, considering the growth of the online dating industry. Last year, a report came out from a Harris poll that stated more than one in three American couples that got married between 2005 and 2012 met online.

Match.com was quick to jump on that study, touting its matching services for their own successful couples.

Match.com is one dating site that has stood the test of time, and managed to grow its user base over the years despite the onslaught of competition. This month the online dating giant announced its “MatchMade” Scholarship Contest, a $50,000 program open to kids of parents who met on Match. Launched over 19 years ago, Match claims it has led to more dates, more relationships, and more marriages than any other site. The company also says that over one million babies were “made” because of Match, so the company will continue to positively impact the lives of its members by offering a scholarship to the children of its success couples.

Match’s contest revolves around creative story-telling and social media sharing. The campaign kicked off with a video of young kids sharing their thoughts on everything from marriage to careers and college – but mostly about love and babies. The MatchMade scholarship contest is open to students between the ages of 13-20 nationwide, so it’s targeting an older demographic that will be ready for the dating pool soon.

To enter, students must submit a short video retelling their parents’ Match love story in a creative way - from their first messages exchanged on Match to the moment they knew they were meant for each other. Match will accept submissions through June 30, 2014, after which the company will select a group of finalists. In August, the public will choose the winner by sharing their favorite videos via Facebook and Twitter, and the winner will be awarded a $50,000 scholarship. The parents of the winner are part of the competition, too - they will be given $5,000 to put toward a getaway.

“Success on Match takes many forms, but of course there’s a special place in our hearts for the children involved in our members’ lives,” said Sam Yagan, CEO of Match. “By bringing their parents together, we’ve played a small role in the lives of more than one million MatchMade babies, and now with the MatchMade Scholarship Contest, we’re excited to extend that special relationship to helping those children pay for college.”

CreepShield Will Tell You If Your Latest Online Crush Is A Creep

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  • Monday, May 19 2014 @ 10:35 am
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  • Views: 2,061

What’s one of the biggest reasons online dating detractors say the Internet is no way to meet a decent date?

The high creep factor, of course. And to be honest, anyone who has tried online dating for more than a day would probably find it difficult to totally disagree. Online dating is an incredible innovation, but there’s no denying it comes with its fair share of strangeness.

A little weirdness is either entertaining or mildly irritating, but what if it goes beyond “a little?” That’s where CreepShield comes in, a new service that helps users avoid the creeps and the crazies online using facial recognition technology .

"Criminals often hide behind aliases online, but CreepShield uses facial recognition software to check for facial similarities and brings up potential matches from a database of over 475,000 registered sex offenders," explained CreepShield's creator Kevin Alan Tussy. "We see facial recognition as a tool that can definitely help make online dating safer. While this technology can't identify everyone out there with bad intentions, it's a huge step in the right direction."

To use the service, simply copy the URL of any headshot and paste it into the CreepShield search engine. The photo is instantly scanned against images in a database of convicted sex offenders, looking for a match. In addition to CreepShield.com, there is also a CreepShield Chrome extension if you prefer to research dates on the fly. Once installed, the extension allows users to right click on any jpg, png or gif displayed in the browser and select "Scan with CreepShield" from the dropdown menu.

CreepShield was developed by the team responsible for the extremely controversial Google Glass app "NameTag." The app and its powerful facial recognition technology were big news earlier this year when Senator Al Franken publicly requested that its release be delayed. With that project put on the backburner, CreepShield came to the forefront.

It’s an intriguing idea, and it’s hard to argue with something that could make online dating safer, but the service still has a few kinks to work out. The site’s FAQ stresses that, due to the way facial recognition technology works, CreepShield can’t guarantee its matches. “It is always up to the user to decide whether or not a searched photo contains the same individual as the results presented,” the site reads. And indeed, when put to the test, it seems the searching method leaves something to be desired.

What do you think? Would you use CreepShield to get the deets on a date?

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