Tinder

It was only a matter of time before Tinder started monetizing its service. And that time, apparently, is now.

Tinder Plus, the dating app’s first foray into the brave new world of freemium monetization, just launched for $9.99. The new update adds at least one highly requested feature alongside a few others designed to improve the experience.

“The most-requested feature we get is a button to go back and have a second chance with people that users swipe left on,” said co-founder Sean Rad told TechCrunch last year. “Everyone has wanted it from the beginning. It’s absolutely at the top of the list.”

Tinder Plus' new Rewind function lets users go back to the most recent person they swiped left on. If you decide you made the wrong choice, you can pay a little extra to bring them back and get a second chance. Your long-lost love may not be so lost, but only if you're willing to cough up the cash to meet them.

Also included is a Passport feature, which lets users search for matches anywhere in the world instead of being limited to their actual location.

“We often hear that people want to be able to start swiping in a location before they’ve left to go on a trip or vacation, and that once they’ve actually made a meaningful connection with someone in a new location, their trip has come to an end,” said Rad. “We also hear people saying that they want to get recommendations for places to go and where to eat in a new city, and Tinder Plus can do better at that.”

Another interesting update, at least from a business standpoint, is the fact that Tinder Plus will remove ads from the network. You knew it had to happen eventually, right? Re/code reports that Tinder is working on a long-awaited ad product that Greg Blatt, chairman of IAC’s The Match Group, expects to be “a meaningful part of the mix” for the company's revenue.

Rad told the Evening Standard that he believes heavy Tinder users are willing to pay for enhanced service. "There are users that are just so active — they are just almost addicted to the platform," he said. However, he also acknowledges that Tinder Plus won't appeal to all users. "These features aren’t something that everyone is going to want to use, and we sort of don’t want everyone to use them."

Tinder has already rolled out its new premium paid service Tinder Plus in the U.S., and among the new features are some protections from spammers.

Tinder Plus includes a new feature called “Unlimited Likes,” which seems counter-intuitive since users of the free app already have the ability to swipe left and right without limits. Unfortunately, spammers have taken advantage of this feature by creating spam bots which swipe right on thousands of profiles simultaneously, increasing users’ match potential.

Tinder has dealt with increasing abuse of its service from spammers. Chances are if you’ve downloaded Tinder, you’ve also come across a fake profile or two that are actually staged to sell you something or obtain personal information, (violating Tinder’s terms and conditions), rather than to make an actual connection with a real person.

Tinder sees its paid service as a way to reduce spamming, as the rewards for this kind of power matching wouldn’t be worth the cost. Apps capitalizing on users’ penchant to say yes to all their potential matches have cropped up, too – like Tinderoid (now labeling itself as “Tools for Tinder”), which enables users to “like” en masse. 

The roll-out of Tinder Plus has already happened in a few other countries, and so far limiting the number of likes has not been received kindly by users who are used to unlimited swiping. According to reviews in the UK’s app store (which dropped the service to only one and a half stars in its rating), Tinder has prevented quite a few users from swiping endlessly unless they pay for the premium service, and they are not happy about it.

Tinder however, says that regular users of the service should not be affected (as opposed to the tiny fraction that swipe right on every single match they can as frequently as possible).

“That behavior happens with a very small percentage of our users, and they usually find that the experience isn’t very good and self-correct on their own,” Sean Rad, the company’s cofounder and CEO, told Tech Crunch.

The algorithm Tinder has set up to block spammers analyzes a few things before it is triggered: namely, the number of swipes, whether the user is only swiping right, velocity, time spent looking at a profile, etc. According to Tinder, a user can swipe through as many as 500 profiles and still not be blocked or prompted to upgrade to Tinder Plus, so long as the user spends a certain amount of time looking at each profile instead of mindlessly swiping.

Tinder launched Tinder Plus in the U.S. this month. For more information about this app, please read our Tinder review.

A recent article in The New York Times highlighted the increased popularity of dating apps, and how one in particular – Tinder – has changed the online dating game.

The proof is in the numbers. According to the most recent Pew study, 11% of American adults have used an online dating site or app. Back in 2005 when dating sites were becoming more popular, 44% of Americans felt this was a good way to meet people. But in 2013, thanks to dating apps like Tinder, 59% agree that online dating is a good way to meet.

Tinder claims it matches more than 12 million people per day, and processes more than a billion matches daily as well. This has sparked a surge of dating apps to flood the market, some of which have succeeded in growing a steady user base based on differentiating themselves from the so-called "hook-up app" (although utilizing the same Facebook profile-validation system). Hinge and Coffee Meets Bagel limit the number of matches per day, forcing users to consider a match rather than mindlessly swiping left and right. The League markets its clientele – upscale and educated – to attract new users. And apps like LuLu and Bumble are female-centric, allowing the women to call the shots on which guys can message them – as well as how their dates rate according to other female daters.

The New York Times article suggests that Tinder's success might have caused some traditionally successful online dating sites such as Match.com to put more research and development into their mobile apps. But essentially, it was only a matter of time before smartphones – which are now used to access everything from email to Facebook to TV shows at any time, from anywhere – would be a good way to meet potential dates. After all, our phones are so much more accessible than our laptops. (Plus, Tinder’s game-like interface is much more fun, compared to slogging through endless questions and profile descriptions on an online dating site.)

Amarnath Thombre, president of Match.com in North America, says there has been a 35 percent increase in the people who use the Match app each month, and a 109 percent increase in the number of people who use only the app to log in to their Match account every month.

For now, daters seem to be choosing convenience over everything else – which might not be a bad idea. Dating apps help people get to the meetings and messages with their matches a lot more quickly than the algorithm process touted by traditional dating sites. But are daters wasting more time because filters aren’t in place?

One thing is for sure: dating apps are here to stay, until something more convenient comes along.

If you’re a woman looking for a date, you might have better luck on dating apps than the guys. According to a new report from GlobalWebIndex, there are nearly 91 million people around the world using dating apps, but two-thirds of these users are men. The market skews younger, too – 70% of users are between 16 and 34.

While dating apps are certainly hot right now, they are only making a dent in terms of overall popularity in the online market. The report also states that 6% of Internet users use a location-based dating app, which puts the category behind niches like augmented reality (108 million monthly users), as well as games and social networking with 655 million and 582 million respectively.

Tinder might be the most popular dating app among Westerners with $1 billion valuation this year according to the report, but Chinese dating app Momo seems to be doing three times better with a $3 billion valuation as of 2015. Momo claims that they have 60 million active monthly users compared to Tinder, who projects 40 million users by April of this year. Of those 60 million Momo users, 25 million are in China, but the rest are across the globe in places like the United Arab Emirates, Phillippines, Thailand and India.

But what about the valuations? Considering most of these apps are free to download and use, how is it that they can be worth so much?

The report notes this discrepancy, too. Despite the large pool of dating app users, only one fifth of users have opted to pay for premium services. This research comes as Tinder is rolling out its new paid premium service, Tinder Plus. The initial roll-out of Tinder Plus in the U.K. was not received well, and in fact caused people with the free version of the app to downgrade its overall score in the app market to 1.5 stars. (In rolling out the new features, Tinder had also curbed some of the existing features of its free app – including limiting the number of matches a user could get per day.) Momo has only signed up two million for its paid service.

While other competitors aim to find their place in the market – offering more features, options and quality to the large and growing pool of dating app users - it seems that making money could still be elusive. Most apps draw users in by offering a free product, and then rolling out a paid “premium” service, but the people aren’t really responding. At least not as much as they need to for sustainable growth. The report points out that generating ad-based revenue is still a viable alternative, even if it means in-app advertising to maintain a free service.

We’ll see what the major dating app companies do next.

While Tinder is looking for ways to increase its revenue stream with new premium service Tinder Plus, it is steering clear of any advertising that affects its service.

Although the company has strategically lent its brand to clever marketing campaigns - like Gillette’s facial hair survey and Domino’s Pizza Valentine’s Day campaign – they have avoided advertising that would compromise the app experience for users. Namely, in-app advertising.

The Gap however, decided that Tinder was the perfect fit for its new social media-inspired ad campaign: #SpringIsWeird, which included in-app advertising on Tinder. The campaign featured fake “profiles” of the Gap logo with messages including “you’re invited to the pants party” and “we’re taking 30% off all Gap denim,” which would appear when users were swiping through potential matches on the app. The Gap also created a “micro series” on Instagram as part of the campaign.

The Gap announced their campaign to a reporter for AdWeek in a story he promoted on Twitter after it was posted. But Tinder never approved the campaign, and apparently did not know it was happening.

In a tweeted response to the AdWeek reporter, Tinder’s VP of Communications & Branding, Rosette Pambakian, responded: “@GarettSloane we will be deleting those GAP profiles. It violates our TOS. We did not approve this campaign and it is not an ad.”

Trishna Nichols, The Gap’s leader of consumer engagement and brand strategies, described the campaign to AdWeek before the fallout: “We did a little something special on Tinder. It's a guerrilla [marketing] idea where you'll see a profile with clever messaging in the spirit of love and the perfect match. It's the perfect fit for Tinder.”

Unfortunately, the campaign wasn’t a fit for Tinder, and The Gap had never received authorization to post the ads. Tinder’s terms of service state that the service is "for personal use only" and that users may not use the service or any content contained in the service for "advertising or soliciting any user to buy or sell any products or services not offered by the company."

Other companies have done guerilla marketing on the app before, such as in 2013 when USA Network was promoting their show “Suits.” Advertisers for the show posted profiles of the show’s characters on Tinder, and they were not taken down. But now that Tinder is gearing up for creating new revenue streams, it could be that they will be cracking down harder on this type of “organic” advertising.

For now, The Gap will be moving forward with the campaign via social media, releasing an episode a week of its micro series on Instagram.

More than one in ten Americans have used a dating app or online dating service of some kind, according to a recent study from Pew Research. And dating apps are only increasing in popularity.

But despite peoples’ love of technology, online daters don’t seem to be finding what they want, and are not so satisfied with the dating app experience. No matter how many new apps hit the market, it seems the inherent problems with online dating (lying, old photos, bad behavior) – are still lingering, and affecting the overall user experience.

People tend to be more critical of dating apps than any other type of app, according to a recent report from Applause, which aggregates app ratings.

According to their report, dating apps consistently rank lower than almost any other kind of app available in stores to download. According to MarketWatch, “while the average app quality score in the U.S. is 67 out of 100 points across all categories, for dating apps, that number is 42 out of 100 — the lowest average score across categories.” The study looked at 53 different dating apps, all of which had more than 1,000 reviews.

While many people may blame apps for their poor online dating experience, the fact that the overall market is leaving people unsatisfied is telling. Online dating is a business, but one that involves people – who can be unpredictable and emotional, especially when it comes to dating.

For one thing, the currency of dating apps are people, so these apps must have a large database with a variety of choices to even compete with some of the major players like Tinder. If people receive the same matches over and over, or somehow “run out of options,” the dating app can be perceived as less valuable than other dating apps. Also, if a dating app user doesn’t like his matches, he’s likely to give it a lower rating, as opposed to others who have a good or even mediocre experience.

Of course, there are other things to consider when it comes to why dating apps aren’t faring so well among users. Some are annoyed with having to pay for special features, or when in-app advertising interrupts the service itself.

Surprisingly, Hinge and eHarmony – two online dating apps that emphasize the quality of their matches – scored low on overall user satisfaction, at least according to their ratings. They both earned an average score of 22 out of 100, and ranked as two of the 10 worst dating apps. OkCupid however, earned 62 points out of 100, putting it in the top 10 category with Skout and Let’s Date. Tinder ranked in the top 20, despite the many complaints and its reputation for being a “hook-up” app.

So what does this mean for online daters?  I guess we’ll have to see how dating apps evolve.