An industry analysis of mobile dating apps

1. MOBILE DATING
ONLINE OFFLINETO
Meghan Thomas
Lu Meng
Zhan Yuan
Onyinye Udenze
Vasili Dimopoulos
INDUSTRY
ANALYSIS
MGMTCOM
506F
GROUP B
TEAM 10

3. - Growing industry with huge potential
- Dynamic industry with more specialization and
technology
- Key players and more entrants
- Revenue streams from advertisements and premium
services
- Marketing and Advertising for success in the Mobile
Dating Industry
Executive Summary

4. I
Industry
T
Trends
C
Competitive
Landscape
B
Business Model

5. What are the characteristics of the
industry?
INDUSTRY

6. INDUSTRY
Internet
$ 8 trillion
Social Network
$2.5 trillion
Dating
$???
I T
C B

7. INTERNET
Early
90’s
Fast iterative
- TOP 500: 30 days
- Top 5000: 35 days
Micro
innovation
Information
I T
C B

8. SOCIAL
User centered
- 500m users
- negative cash flow
Data driven
Sharing
2004
I T
C B

9. DATING
1995
2003
Matchmaking
Familiarizing
- upgrading relationships
Geolocation
I T
C B
Online
Mobile
Match.com eHarmony

10. INDUSTRY
Internet
$ 8 trillion
Social Network
$2.5 trillion
DATING
$2.1 billion? I T
C B

11. Static
Dynamic
I T
C B
TI
C B

12. TRENDS
Great Potential
Going Mobile
Techy Love
Niche Markets
Social Image
TI
C B

13. GOING
MOBILE
Geography information marries online
dating and offline dating
2011
Wherever & Whenever
2012
Mobile dating apps > Desktop
Mobile dating revenue
increased 29% to 213 m
Mobile dating users doubled to
13.7 m from 2011 to 2012
TI
C B

14. NICHE
MARKETS
Market Segmentation &
Market Target
Undeserved market is big and
demand is different
City Folks Just
Don’t Get It
FarmersOnly
SouthEast
BlackPeopleMeet
DateMyPet
JDate
Cynder
Tinder for Cynthia’s
students
TI
C B

15. TECHY
LOVE
Smarter
Algorithms
More Channels
More Date
1/3 Marriage
2018
2012
2005
46%
80%
TI
C B

16. SOCIAL
IMAGE
No longer for just losers
Shift in user attitude:
A good way to meet people
Meeting online is twice as likely to
marry as those who met offline
TI
C B

17. Going Mobile
Techy Love
Niche Markets
Social Image
WHO
ARE
THE
PLAYERS?
TI
C B
C
I T
B

18. COMPETITIVE LANDSCAPE
C
I T
B

19. Tinder
“Plenty of Matches,
Plenty of Weirdos”
350
750
Users
per day
Cons Pros
C
I T
B

20. Hinge
“Seems like the next generation
of mobile dating”
Launched 2011
Users 8M daily
Funding to date 24 M
Cities 15
Retention Rate 75%
Cons Pros
8
12
Users to
date
37% more likely to date someone if
you’ve got Facebook friendsC
I T
B

21. Grouper“You go to a bar, randomly hit on girls? If
you’re lucky, one out of 10 times, if all goes
well, after a lot of hard work and a lot of
painful failure, you end up across the table
from a group of girls sharing casual drinks.
With Grouper, that’s where you start.”
-Michael Waxman, Founder
Launched 2011 mobile 2013
Users “hundreds of
thousands of drinks”
Funding to date ??
Cities 20
Retention Rate 93%
Cons Pros
#groupergram
C
I T
B

22. Coffee
Meets
Bagel
“Groupon of mobile dating”
Cons Pros
0.640
3.4
Users
C
I T
B

23. HOW
DO
THEY
MAKE MONEY?
C
I T
B
B
I T
C

24. Marketing
Upgrades
Valuations
Acquisitions
BUSINESS MODEL
B
I T
C

25. Marketing
Sponsored advertisement
Providing locations to
meet: HOTSPOT
Staying relevant
Promote on all social
networks
B
I T
C

26. Upgrades
“Freemium” Business Model
- Needs Wide Distribution
- Ie : Skype calls and Pay for Voicemail
LinkedIn 75% Rev Premium, 25% Adverts
- Free = Emotional hot button Free = “nothing to lose”
- Remember: Not Fake Free!
$1 cell phones with a contract, Gillette Razors
“The easiest way to get 1
million people paying is to
get 1 billion people using,”
-Phil Libin,
CEO of Evernote
Most Apps generate revenue from Memberships
B
I T
C

27. Valuations
"I see the industry breaking off into a
billion different directions,”
-Marc Lesnick,
founder of iDate,
an annual trade show for the online dating industry.
Earnings
Evaluations of Each Other
Asset-based Valuation
DCF
B
I T
C

28. Acquisitions
Watch out for IAC(Match.OkCupid)
- Owns 28% of 2500+ industry of
competitors
Key Performance Metrics:
- Avg daily visitors
- # active accounts
- Conversion rates
- Customer Loyalty rates
- # of matches
Tinder evaluated at $5 Billions by
Barclays
- Scrutiny b/c no monetary value
B
I T
C

29. Marketing and Advertising
Access to niche markets
Turning to technology
Reputation
Ease of Access
Success
Factors
B
I T
C

30. - Taking the industry from O2O – Online to Offline
- Continue to grow
- Mobile, Niche, Technology, Making it Cool
- Many Platforms to meet folks
- Areas for Business
Key Takeaways

31. Q
Question?

32. T
Thank You