The document is a September 2011 business newsletter from News Online Xchange. It discusses trends in the online dating industry, including the growth of mobile dating apps and niche dating sites. It also provides an overview of technologies used by online dating sites to match users and convert them to paying customers, such as matching algorithms, psychological profiling of users, and communication options.

1. SEPTEMBER 2011 BUSINESS NEWSLETTER
News Online Xchange
SEPTEMBER 2011 ISSUE
News Online Xchange (NOX) is the o cial monthly business newsletter of New Media Services Pty. Ltd. It
serves to give up-to-date information on the products and services under the NMS brand, as well as
news involving the Web and Mobile industries.
Dating sites have mushroomed over the recent years. Although considered a social taboo when it first began, it has been eventually widely accepted by
people all over the world. On this issue, we take a look at the booming internet dating business.
The ALGORITHMS of Love Online Dating: The Technology
Behind the Attraction
Peeking under the covers of online dating sites. Step 4: Weeding out
Internet dating sites are the love machines of the Web, and they're big business. These online dating services run cheats & scammers
on a curious mix of technology, science (some say pseudoscience), alchemy and marketing. Under the covers, they
combine large databases with business intelligence, psychological profiling, matching algorithms and a variety of
communications technologies to match up lonely singles and to convert one-time visitors into paying monthly
subscribers. To succeed, a site needs to do the following:
Step 1: A perfect match, Step 2: From "just looking" Step 3: Make a high-quality
served up fast to "paying customer" connection
Stories of negative user experiences
associated with online dating sites range
from the woman duped into sending
$4,500 in emergency funds to a man she
thought was stranded in Nigeria, to
pedophiles who scan the online dating
People want instant gratification, so the When it comes to converting users to paid Once users have paid for a subscription, sites looking for lonely women with kids to
sites should try to give users at least subscribers, the battle is all uphill in an online dating sites offer different the New York woman who was the victim
some matches as soon as they've industry in which more than 90% of users tech-driven options for contacting and of a romance scam that cost her $100,000.
created an account and completed their never pay a dime. That's where having getting to know prospective dates, The Internet Crime Complaint Center's
profiles. Some sites take a hybrid extensive demographic and psychological everything from chat rooms to instant 2007 Internet Crime Report found Internet
approach. PerfectMatch.com, for data on customers comes in handy. messaging, e-mail and even video chat. fraud had risen and that online dating fraud
example, issues recommended picks The idea is to make users of the site was one of the most commonly reported
but also lets customers browse the comfortable with each other. This paves complaints. Online dating sites use a
"inventory" for themselves. way to make you “paying customers” into variety of approaches to detect suspicious
“loyal paying customers.” accounts.
Source: http://www.computerworld.com/s/article/9127711/Online_dating_The_technology_behind_the_attraction
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2. SEPTEMBER 2011 ISSUE SEPTEMBER 2011 BUSINESS NEWSLETTER
Meeting someone online ala “You’ve Got Mail”? That is so
DATING TRENDS OF THE NOW 1998. Now that you have mastered the DO’Ss and DON’TS of
online dating business, here are some online dating trends
that are making its way around the world wide web.
1. Mobile Phone Dating IPHONE DATING APPS
According to TechCrunch, Juniper Research has released a report
that claims the value of the mobile dating and chatroom market will
grow to nearly $1.4 billion by 2013.
That number is generous to a fault but growth is unavoidable, as
mobile dating platforms, service providers, developers and applica-
tions are currently surging after several years of false-starts.
It is best if your online dating service website do have mobile-
friendly applications for easy-access.
GPS-based DATING
According to TechCrunch, Juniper Research has released a report
that claims the value of the mobile dating and chatroom market will
grow to nearly $1.4 billion by 2013.
That number is generous to a fault but growth is unavoidable, as
mobile dating platforms, service providers, developers and applica-
As smartphone usage has become increasingly prevalent, the usage tions are currently surging after several years of false-starts.
of mobile devices – and the constant Internet connectivity they
provide – to access dating websites to search for potential matches It is best if your online dating service website do have mobile-
and answer messages from interested members has become more friendly applications for easy-access.
and more popular.
Huge market, great iPhone development tools, many
Flurry, a mobile application analytic, furthermore says that daily time
spent in mobile apps has now surpassed web consumption. platforms to develop for, multiple entrants in the
marketplace and several entrenched competitors all
make for a very exciting avenue for mobile dating.
2. Merging Online Dating Services 3. Niche Online Dating Services
As the internet dating business expands, so does its services. Niche
online dating services are sprouting like crazy! These services look
for one common denominator that people must share in order to be
One of the newest and arguably the least common type of dating a part of the service.
service to spring up over the last few years is “merging online dating
services”. There are already several general dating services online that
dominate the market.
These services seek to “merge” aspects of the offline and online
dating environment, allowing a more seamless transition between the Instead of trying to compete with these sites directly, focus on
two. specific groups for your dating service.
While the methods that these services use to create this bridge vary According to the latest U.S. numbers from Hitwise, the top niche
between sites, the trend toward linking the real world and the dating sites are steadily gaining market share while their big
internet is the common theme. mainstream counterparts stagnate.
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3. SEPTEMBER 2011 ISSUE SEPTEMBER 2011 BUSINESS NEWSLETTER
4. Virtual Dating 3D 5. Social Networking Date Sites
One thing that you may not know about online dating and social
This is considered by most as the “test drive” of online relationships. networking is that they are almost always connected. When many
Going on a virtual date entails setting up an avatar. When a single individuals go in search for love online, many head to online dating
you are interested in logs in, you can ask that person for a virtual websites.
date. Once the person agrees, the two avatars are transported to a
random setting, such as a bar, a cafe or on a beach. Couples can Did you know that online dating websites are actually socially
then play games to break the ice, choose what music to listen to, networking websites? What sets online dating websites apart from
and write messages that pop up as text boxes. traditional social networking sites is that all of the individuals who
are a part of the online community are looking to find love.
What makes this appealing is that it eliminates that awkward first
face-to-face encounter between strangers. Although not all dating In fact, that is one of the many advantages to using social network-
websites offer virtual dating. ing websites, especially those with a focus on relationships.
Online dating businesses are hot property on the Internet right now mainly due to the fact that there's a good deal of money to be made
with virtual matchmaking. Invest in a reputable dating software program. You need some method of cataloguing, sorting and matching
clients. You likely will also want to have a feature that allows your clients to search your database, update their profiles and view other
people's profiles.
Online Dating by The Numbers
Online Dating Usage
15 Million
38.2 Million
40 Million
$4B
WORLDWIDE
The online dating industry’s worth
140 Million
10% $550M
The online dating sector’s expected growth by 2013 10M
COUPLES
met online in 2010
The mobile phone dating market’s worth
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4. SEPTEMBER 2011 ISSUE SEPTEMBER 2011 BUSINESS NEWSLETTER
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end-users of Dating Service Websites.
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instant messenger (with webcam). It interactions via electronic mail. It boasts versa interactions through live operators
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Candid Chat offers:
CamCast is a view-and-chat feature that PenPals offers:
can be offered by Dating Service Sites Friendly Chatting: Casual, Light and
to end-users who have a more visual Friendly Emails: Casual, Light and Simple Chat
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backed by live webcam chat operators Flirty Emails: Playful, Naughty and Romantic Chat
who provide wholesome yet enticing Romantic
Adult Chatting: Hot, Erotic, Sexually
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for the October issue of NOX!
Text Alerts & Bulk
SMS Platforms
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