Online dating is going mainstream. The study is based on a survey of 2, U. And the rapid growth in online dating is as much about money as it is love. Young adults are leading the surge in online dating, with usage among to year-olds almost tripling since Pew's online dating study. Call it the Tinder factor: Aaron Smith, author of the report, told NPR that mobile apps' appeal lies in their simplicity and " game-ified way of engaging with other people.
Online dating is a big market. Here in the U. Match, whose portfolio includes OkCupid, Tinder and Match. Investors are interested in the market's potential: Still, despite the increasing popularity of online dating, concerns remain over the industry's ability to generate a profit. The biggest issue is that, when the apps work and people find partners, they stop using the service.
As a result, dating apps must be adept at acquiring new customers. Unfortunately, as the Wall Street Journal points out , most dating apps don't experience the same meteoric rise that Grindr and Tinder have, and users generally don't recommend the latest apps to their friends. Following the earnings report, Barclays downgraded the stock, and both JPMorgan and Merrill Lynch lowered their price targets. Keeping these challenges in mind as well as the industry's growth , let's take a look at what analysts expect to see from online dating companies when they next report earnings.
Analysts provide estimates for various aspects of a company's operations, including its net income, earnings per share and revenue. The consensus estimate, which is the average of the provided figures, is then used as a benchmark come earnings season. In , 29 percent of U. According to Pew Research Center , 54 percent of online daters felt that someone else seriously misrepresented themselves in their online profile.
Pew also found that 28 percent of online daters have been contacted by someone through an online dating site or app in a way that made them feel harassed or uncomfortable. Other challenges facing the market include fake online profiles, fraudulent traffic, database breaches, and privacy safeguards to protect users. How Will the Industry Evolve? According to Marketdata Enterprises Inc. There are over 1, dating sites that all are working to attract the same consumers: In fall of , the leading dating site in the U.
Match Group's portfolio includes Tinder, Plenty of Fish, How About We, and OkCupid. While Match said that nearly all of its revenue currently comes from paid membership fees on its sites, advertising revenue could be a big source of future growth, especially when it comes to increased usage among mobile users. And finally, as more success stories emerge, many singles will turn to matchmaking services. Interested in learning more about the dating services industry?
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