This document provides an analysis of the mobile dating industry. It discusses trends in the industry such as it moving towards being mobile-focused, the growth of niche markets, and dating becoming more socially acceptable. Key players in the industry are identified as Tinder, Hinge, Grouper, and Coffee Meets Bagel. Their user bases and funding amounts are compared. The business models of mobile dating apps are also examined, with most generating revenue from paid upgrades/premium services or advertising. Factors for success in the industry include effective marketing, accessing niche markets, and leveraging new technologies.

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