Statistics

Here is another story from my draft folder. Back in February, PC World looked at the matching algorithms of attraction and the business models behind some of the more popular online dating sites.

Here are a few interesting statistics which emerged from their review of the industry as a whole:

• For 2009 the dating industry is expected to top $1.049 billion and is likely to grow at a rate of 10 percent.
• It is estimated with free dating sites, at least 10 percent of new accounts created each day are from scammers.
• With paid dating sites, on average 10 percent of members pay for the service and stay for less than 3 months.
• In November 2008, online dating traffic as a whole was over 22 million with males making up 52.4 percent of the total number of visits (females 47.6 percent).
• Average time spent per visit to the top 10 online dating sites in 2008 was 22 minutes and 27 seconds.

A lot of the information mention in the article we have talked about before, so I will only discuss any new details. What we did learn, deals more about the hardware needed to run a busy dating site and the process of matching. For instance (WARNING tech talk coming), eHarmony has over 4 terabytes of information on more than 20 million registered members, each who have completed the 400 to 256 profile questions (eHarmony's profile has gotten shorter over the years). After a user signs up at eHarmony, a 10 Gig Oracle database is used to match you with initially, a few members. Apparently the real matching takes place later when your answers are matched up with thousands of other users who have answered hundreds of questions. The whole process takes almost 1 billion calculations and is done in a batch operation at the end of each day. This is a lot of calculations to find matches for a single user. It also tells me that while the initial database is probably filled with the most current users who are using eHarmony now, the matches which you may be more compatible with, will be given to you in a day or so from the much larger database. To give you an idea of the size difference between the two, the main database is about 400 times larger. eHarmony also says a members actions and outcomes on the site is stored and used to help determine matches. The example given deals with your geographical limit you set when you first filled out your profile. If you say, set it to 20 miles, but the eHarmony matching system sees you are viewing members who live farther away, then your location limit will be adjusted. This is because, eHarmony will assume location of a match isn't a deal breaker for you (so only click on those long distance matches only if you really want to travel).

PerfectMatch.com (which has 5 million members) has a lengthy profile as well when compared to most other dating sites, but it still only takes about half of the time to complete when compared to eHarmony's. For their dating site, Perfect Match uses 5 web servers and a number of SQL server database servers. A number of other servers are also used to handle messaging and marketing needs. According to the company, PerfectMatch.com's matches happen right away, there is little to no delay.

PlentyofFish.com is also mentioned and the article. According to the author, POF wants to keep things simple when it comes to the profile and searching. The thing is, POF does have a Chemistry test which for some reason is not mentioned. Plenty Of Fish also has been promoting this fact lately due to their new Serious Member paid membership. Serious Members must take the chemistry and personality test to qualify. Hardware wise, we learned that Plenty Of Fish uses 3 web servers, 5 messaging servers and 5 database servers. Their database of user information is 200 GB. For the year the total cost to operate is only a couple hundred thousand dollars with the majority of the money spent on bandwidth.

For information on some of the dating sites mentioned here, read our eHarmony review and our Perfect Match review.

This story was originally from December 28, 2008 and has been in my draft folder ever since. I thought it was about time I should finish it up.

As we know FriendFinder Networks Inc. (formerly Penthouse Magazine) filed to go public in late December, 2008 and intends to list under the symbol FFN, on the New York Stock Exchange. (see Story). In order to do this they released some financial and subscriber numbers for investors. Lets review the reason for the IPO first. Penthouse bought FriendFinder Networks from Various in December 2007 for $500 million (see Story). Since then Penthouse decided to change their name to FriendFinder Networks Inc. for a number of reasons including to help market themselves as a Social Network to would be investors. The main reason for the $460 million IPO is FriendFinder:

The Miami Herald has some interesting information in their article about people going online to look for married dating and affairs. The largest affair dating site of it's kind is Ashley Madison. As with most dating sites it is free to join but requires you to buy tokens or credits to message other members. AshleyMadison.com reported in March revenue in the 10's of millions of dollars and 3.86 million members worldwide. 12 months ago we reported that Ashley Madison had just over 2 million members (see Story). Business has been very good for them as they increased their membership by 50% in less than a year. The six largest markets for Ashley Madison in order are:

• New York
• Los Angeles
• Toronto
• Dallas
• Houston
• South Florida - With over 177,000 members.

The gender split on average is 70 percent male and 30 percent females but in Florida it is more even with 60 percent of South Florida members being male. This ratio split is on par with other dating sites whose main theme is the intimate encounter.

Founder Noel Biderman when he launched the dating service in 2001 decided to name it after the two most popular girl baby names that year, which happened to be Ashley and Madison. He originally decided to create an affair dating site after he did some research and found that almost 35 percent of people using online dating sites already had a partner. He thought this would be a win-win situation by providing a place for cheaters to go and preventing singles on other dating sites getting duped by people just looking for affairs.

So, how has the recession affected different markets in the love and relationship industry? According to Yahoo News it is all up and down.

Dating Sites - UP - We have had numerous articles on this site which talks about how online dating sites for the most part are having a period of booming business (see Search Results). Singles are looking to relationships for comfort instead of material goods.

Divorces - DOWN - From a previous story we noted that 37 percent of Matrimonial Lawyers are seeing a decline of couples getting a divorced in these financially trying times. Couples realize it is more economical to stay together and try to work things out since attorney fees and court costs can sometimes run up to $100 thousand.

Romance Books - UP - Sales for romance fiction is up according to the world's leading publisher, Harlequin Enterprises. Quarter 4 in 2008 saw a 7 percent increase compared to the same quarter in 2007. The 4 years before this, sales in this category have been flat.

Weddings - DOWN - Online dating may be up but, 75 percent of couples getting married are spending less. On average couples are spending 24 percent less per wedding than they did a year ago. This is a huge blow to the $60 billion a year wedding industry.

Since the start of the global recession, online dating services in the United Kingdom have grown 13 percent (September 2008 - February 2009). A total of 5 million singles from the UK are now using dating sites. This is 13 percent of the total UK online population. Genders are split evenly and heavy use members were online an average of 4 hours per month viewing and average of 23 pages a day. 65% of UK online daters are 35 or older. The most popular dating site in the month of February was DatingDirect (owned by Meetic, 1.6 million visitors), followed by POF (with 1.4 million) and then Match.com (1 million visitors).

Read NewMediaAge for more information on the story. Visit our DatingDirect review , our POF review and our Match.com review for more information on these dating sites.

I have finished up our new review of the dating site, RSVP. It is the first dating site in our new Australian Dating Site category. I hope to have a few more added to this new dating category by the end of May.

RSVP is owned by Fairfax Digital and currently is the largest Australian dating site with over 1 million members. It uses a stamp/credit system for initiating contact with members and it is free to reply to any message from a member. This is also the only dating site that I know of which Australians can use there mobile phone to access the dating site and receive SMS alerts.

Read the new RSVP review for more information.